Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited),
July
31,
2020
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
1
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
99.5%
Alabama
1.3%
Alabama
Incentives
Financing
Authority
,
Revenue
,
2012-A
,
Pre-Refunded
,
5
%
,
9/01/42
$
14,300,000
$
15,689,245
Alabama
Public
Health
Care
Authority
,
State
of
Alabama
Department
of
Public
Health
,
Revenue
,
2015
,
Refunding
,
5
%
,
9/01/44
.................................
17,085,000
19,976,124
Birmingham
Airport
Authority
,
Revenue
,
2010
,
AGMC
Insured
,
5.5
%
,
7/01/40
.......
20,000,000
20,017,800
Board
of
Water
&
Sewer
Commissioners
of
the
City
of
Mobile
,
Revenue
,
2014
,
Refunding
,
5
%
,
1/01/36
.............................................
11,300,000
12,399,151
Chatom
Industrial
Development
Board
,
PowerSouth
Energy
Cooperative,
Revenue,
2010
A,
Refunding,
AGMC
Insured,
5%,
8/01/30
........................................................
5,250,000
5,250,000
PowerSouth
Energy
Cooperative,
Revenue,
2010
A,
Refunding,
AGMC
Insured,
5%,
8/01/37
........................................................
5,000,000
5,000,000
Chilton
County
Health
Care
Authority
,
Revenue
,
2015
A
,
5
%
,
11/01/40
............
8,425,000
9,731,717
City
of
Phenix
City
,
Water
&
Sewer
,
Revenue
,
2010
A
,
AGMC
Insured
,
5
%
,
8/15/40
..
8,090,000
8,101,973
Limestone
County
Water
&
Sewer
Authority
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
5
%
,
12/01/45
.....................................................
10,500,000
12,578,370
State
of
Alabama
,
Docks
Department
,
Revenue
,
2010
,
Pre-Refunded
,
6
%
,
10/01/40
.
6,000,000
6,055,440
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
5,000,000
6,135,900
Water
Works
Board
of
the
City
of
Birmingham
(The)
,
Revenue,
2013B,
Pre-Refunded,
5%,
1/01/38
.............................
3,500,000
3,907,925
Revenue,
2013B,
Pre-Refunded,
5%,
1/01/43
.............................
8,000,000
8,932,400
Revenue,
2016
B,
Refunding,
5%,
1/01/43
...............................
10,000,000
12,103,200
145,879,245
Alaska
0.6%
Alaska
Industrial
Development
&
Export
Authority
,
Providence
St.
Joseph
Health
Obligated
Group
,
Revenue
,
2011A
,
5
%
,
10/01/40
..........................
10,000,000
10,355,000
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2015,
Refunding,
5.25%,
10/01/36
.............................
16,045,000
18,565,349
Revenue,
2015,
Refunding,
5%,
10/01/39
................................
12,950,000
14,734,121
City
of
Anchorage
,
Electric
,
Revenue,
Senior
Lien
,
2014A
,
Refunding
,
5
%
,
12/01/41
.
8,875,000
10,350,291
State
of
Alaska
,
International
Airports
System
,
Revenue
,
2010C
,
5
%
,
10/01/33
.....
12,565,000
12,634,987
66,639,748
Arizona
2.4%
Arizona
State
University
,
Revenue
,
2016
C
,
5
%
,
7/01/42
......................
9,000,000
10,861,560
a
Chandler
Industrial
Development
Authority
,
Intel
Corp.
,
Revenue
,
2019
,
Mandatory
Put
,
5
%
,
6/03/24
......................................................
15,000,000
17,302,950
City
of
Lake
Havasu
City
,
Wastewater
System
,
Revenue
,
2015B
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/40
...............................................
15,000,000
17,703,750
City
of
Mesa
,
Utility
System
,
Revenue
,
2012
,
4
%
,
7/01/36
.....................
19,000,000
19,920,740
City
of
Phoenix
Civic
Improvement
Corp.
,
Revenue,
2019
A,
4%,
7/01/45
........................................
10,000,000
10,632,200
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
25,000,000
28,098,500
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/49
........................
16,000,000
19,204,800
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/32
........................................................
6,000,000
8,653,380
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/34
........................................................
5,000,000
7,454,800
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/35
........................................................
9,860,000
14,920,645
Glendale
Municipal
Property
Corp.
,
Revenue
,
2012C
,
Refunding
,
5
%
,
7/01/38
......
15,500,000
17,007,685
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
2019
A,
4%,
1/01/44
...............
25,000,000
28,856,500
Banner
Health
Obligated
Group,
Revenue,
A,
4%,
1/01/41
...................
10,000,000
11,374,100
Christian
Care
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
1/01/36
......
5,000,000
5,596,550
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
2
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.
,
Revenue
,
2009A
,
Refunding
,
3.6
%
,
2/01/40
............................................
$
19,500,000
$
21,347,820
Pinal
County
Electric
District
No.
3
,
Revenue
,
2011
,
Pre-Refunded
,
5.25
%
,
7/01/36
..
10,000,000
10,460,900
University
of
Arizona
(The)
,
Revenue
,
2014
,
5
%
,
8/01/44
......................
10,000,000
11,353,400
260,750,280
Arkansas
0.5%
Arkansas
Development
Finance
Authority
,
Baptist
Health
Obligated
Group,
Revenue,
2019,
5%,
12/01/47
................
3,025,000
3,669,295
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/40
........................................................
1,100,000
1,342,297
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/44
........................................................
5,000,000
6,034,450
Bentonville
School
District
No.
6
,
GO
,
B
,
Refunding
,
4
%
,
6/01/47
................
27,935,000
31,273,791
University
of
Arkansas
,
Revenue,
2012B,
Pre-Refunded,
5%,
11/01/37
............................
3,100,000
3,359,718
Revenue,
2017,
5%,
11/01/47
........................................
6,500,000
7,989,410
Revenue,
2019A,
Refunding,
5%,
11/01/49
...............................
3,000,000
3,774,780
57,443,741
California
7.4%
California
Infrastructure
&
Economic
Development
Bank
,
Academy
of
Motion
Picture
Arts
and
Sciences
Obligated
Group,
Revenue,
2020B,
Refunding,
5%,
11/01/29
...........................................
3,000,000
4,067,160
State
of
California
Department
of
Transportation
Seismic
Surcharge,
Revenue,
First
Lien,
2003
A,
Pre-Refunded,
AMBAC
Insured,
5%,
7/01/33
.................
24,500,000
32,341,225
California
State
Public
Works
Board
,
Revenue,
2012
A,
AGMC
Insured,
5%,
4/01/28
............................
13,030,000
14,031,225
Revenue,
2012
A,
AGMC
Insured,
5%,
4/01/29
............................
21,000,000
22,591,800
Revenue,
2012
A,
5%,
4/01/30
........................................
18,000,000
19,333,260
Revenue,
2012
A,
5%,
4/01/33
........................................
12,475,000
13,351,618
California
Statewide
Communities
Development
Authority
,
Southern
California
Edison
Co.
,
Revenue
,
2010A
,
Refunding
,
4.5
%
,
9/01/29
..........................
14,830,000
14,868,113
City
of
Los
Angeles
,
Department
of
Airports,
Revenue,
2010A,
5%,
5/15/40
......................
9,975,000
10,075,748
Department
of
Airports,
Revenue,
2010D,
5%,
5/15/40
......................
19,570,000
19,767,657
Corona-Norco
Unified
School
District
,
GO,
C,
AGMC
Insured,
6.2%,
8/01/29
..................................
3,250,000
4,529,785
GO,
C,
Pre-Refunded,
AGMC
Insured,
6.8%,
8/01/39
.......................
8,500,000
11,989,335
GO,
C,
AGMC
Insured,
Zero
Cpn
.,
8/01/39
...............................
7,500,000
4,666,950
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Refunding,
5.75%,
1/15/46
.............................
25,000,000
27,949,000
Revenue,
2013
A,
Pre-Refunded,
6%,
1/15/49
............................
20,000,000
23,990,600
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
1/15/30
..............
15,475,000
18,222,586
Revenue,
2013
A,
Refunding,
Zero
Cpn
.,
1/15/42
..........................
20,000,000
22,815,400
Jefferson
Union
High
School
District
,
GO,
D,
Pre-Refunded,
Zero
Cpn
.,
8/01/35
...............................
10,500,000
3,344,040
GO,
D,
Pre-Refunded,
Zero
Cpn
.,
8/01/40
...............................
10,000,000
2,103,300
GO,
D,
Pre-Refunded,
Zero
Cpn
.,
8/01/41
...............................
13,590,000
2,628,578
Los
Angeles
Community
College
District
,
GO
,
2010C
,
Pre-Refunded
,
5.25
%
,
8/01/39
30,000,000
30,000,000
Los
Angeles
Department
of
Water
&
Power
,
Power
System
,
Revenue
,
2013
B
,
5
%
,
7/01/31
.........................................................
20,000,000
22,612,400
Los
Angeles
Unified
School
District
,
GO
,
2010
KRY
,
5.25
%
,
7/01/34
.............
36,625,000
36,754,653
M-S-R
Energy
Authority
,
Revenue
,
2009B
,
6.5
%
,
11/01/39
.....................
12,500,000
20,377,500
New
Haven
Unified
School
District
,
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/31
............................
2,055,000
1,749,607
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
3
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
New
Haven
Unified
School
District,
(continued)
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/32
............................
$
7,830,000
$
6,474,001
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/33
............................
7,660,000
6,148,222
Oro
Grande
Elementary
School
District
,
COP,
2020,
Refunding,
4%,
9/15/24
....................................
2,135,000
2,324,844
COP,
2020,
Refunding,
4%,
9/15/25
....................................
2,120,000
2,343,808
COP,
2020,
Refunding,
4%,
9/15/27
....................................
2,400,000
2,695,440
COP,
2020,
Refunding,
4%,
9/15/28
....................................
2,095,000
2,374,264
Rialto
Unified
School
District
,
GO
,
2011A
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/36
......
20,000,000
13,399,600
San
Francisco
City
&
County
Airport
Comm
-San
Francisco
International
Airport
,
Revenue,
2019
A,
Refunding,
5%,
5/01/49
...............................
38,000,000
46,363,040
Revenue,
Second
Series,
2019E,
5%,
5/01/50
............................
1,500,000
1,828,335
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
Senior
Lien,
1993,
ETM,
Zero
Cpn
.,
1/01/23
......................
7,000,000
6,947,990
Revenue,
Senior
Lien,
2014A,
Refunding,
5%,
1/15/34
......................
50,000,000
56,524,000
San
Jose
Unified
School
District
,
GO
,
2018
E
,
4
%
,
8/01/42
....................
10,600,000
12,285,082
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn
.,
8/01/42
...............
50,000,000
56,561,000
San
Mateo
Union
High
School
District
,
GO,
2011A,
Zero
Cpn
.,
9/01/33
.......................................
6,065,000
6,136,082
GO,
2011A,
Zero
Cpn
.,
9/01/41
.......................................
20,000,000
22,916,200
Santa
Ana
Unified
School
District
,
GO,
2009B,
AGMC
Insured,
Zero
Cpn
.,
8/01/35
...........................
10,000,000
7,445,300
GO,
2009B,
AGMC
Insured,
Zero
Cpn
.,
8/01/36
...........................
18,865,000
13,590,723
GO,
2009B,
AGMC
Insured,
Zero
Cpn
.,
8/01/37
...........................
10,000,000
6,986,100
Santa
Monica-Malibu
Unified
School
District
,
GO
,
A
,
4
%
,
8/01/44
...............
9,360,000
10,904,587
State
of
California
,
GO,
5.9%,
4/01/23
.................................................
900,000
908,028
GO,
5.25%,
3/01/30
................................................
40,000,000
40,144,800
GO,
6%,
3/01/33
..................................................
4,030,000
4,047,289
GO,
2002,
NATL
Insured,
5%,
10/01/32
.................................
20,000
20,065
GO,
2010,
5.25%,
11/01/40
..........................................
50,000,000
50,543,000
West
Contra
Costa
Unified
School
District
,
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/29
....................
10,000,000
8,885,500
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/30
....................
20,845,000
18,073,240
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/31
....................
20,000,000
16,898,400
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/32
....................
10,730,000
8,798,278
816,728,758
Colorado
3.2%
City
&
County
of
Denver
,
Revenue,
2018
A-1,
5%,
8/01/48
......................................
39,690,000
47,054,480
Revenue,
2018A-2,
Zero
Cpn
.,
8/01/35
.................................
2,000,000
1,281,940
Revenue,
2018A-2,
Zero
Cpn
.,
8/01/36
.................................
2,500,000
1,528,000
Revenue,
2018A-2,
Zero
Cpn
.,
8/01/37
.................................
2,455,000
1,430,921
Revenue,
2018A-2,
Zero
Cpn
.,
8/01/38
.................................
2,000,000
1,113,440
Airport
System,
Revenue,
1992-C,
NATL
Insured,
ETM,
6.125%,
11/15/25
.......
3,590,000
4,500,352
Airport
System,
Revenue,
1992-C,
NATL
Insured,
6.125%,
11/15/25
............
4,410,000
4,586,841
Airport
System,
Revenue,
2013B,
5.25%,
11/15/33
.........................
16,405,000
18,424,620
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/38
..................
12,000,000
14,787,480
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/43
..................
11,000,000
13,396,790
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/48
..................
10,000,000
12,095,900
Airport
System,
Revenue,
2018
A,
Refunding,
5.25%,
12/01/48
...............
26,000,000
31,940,740
Colorado
Health
Facilities
Authority
,
Adventist
Health
System/Sunbelt
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
11/15/41
.......................................................
30,505,000
35,607,266
Adventist
Health
System/Sunbelt
Obligated
Group,
Revenue,
2018A,
5%,
11/15/48
12,000,000
14,450,760
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
4
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Colorado
Health
Facilities
Authority,
(continued)
Adventist
Health
System/Sunbelt
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
11/15/43
.......................................................
$
30,000,000
$
34,815,900
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016A,
5%,
12/01/41
....
5,000,000
5,809,150
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016A,
5%,
12/01/44
....
10,200,000
11,763,048
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/44
10,000,000
12,195,900
Evangelical
Lutheran
Good
Samaritan
Obligated
Group,
Revenue,
2015A,
Pre-
Refunded,
5%,
6/01/45
............................................
19,000,000
23,274,430
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020A,
4%,
9/01/45
....
1,000,000
1,114,650
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020A,
4%,
9/01/50
....
3,000,000
3,321,510
Sisters
of
Charity
of
Leavenworth
Health
System,
Inc.
Obligated
Group,
Revenue,
2019B,
Refunding,
4%,
1/01/40
......................................
10,000,000
11,206,900
Eagle
River
Water
and
Sanitation
District
,
Revenue
,
2020
A
,
AGMC
Insured
,
4
%
,
12/01/45
........................................................
1,250,000
1,502,063
Park
Creek
Metropolitan
District
,
Revenue,
Senior
Lien
,
2018A
,
5
%
,
12/01/46
......
2,875,000
3,508,247
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
20,000,000
31,718,400
Regional
Transportation
District
,
Sales
Tax
,
Revenue
,
2012A
,
5
%
,
11/01/32
........
10,000,000
10,901,800
353,331,528
Connecticut
0.2%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/37
..........
3,000,000
3,454,230
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/39
..........
5,750,000
6,581,910
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/40
..........
2,250,000
2,568,758
State
of
Connecticut
,
Special
Tax,
2020
A,
4%,
5/01/39
......................................
1,650,000
1,920,682
Special
Tax,
2020
A,
5%,
5/01/40
......................................
2,000,000
2,563,320
17,088,900
Delaware
0.0%
†
County
of
Kent
,
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/40
...........................
1,100,000
1,079,551
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/48
...........................
1,485,000
1,422,482
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/53
...........................
1,100,000
1,042,272
3,544,305
Florida
6.1%
Broward
County
Housing
Finance
Authority
,
Heron
Pointe
Ltd.,
Revenue,
1997
A,
5.65%,
11/01/22
......................
210,000
210,766
Heron
Pointe
Ltd.,
Revenue,
1997
A,
5.7%,
11/01/29
.......................
225,000
225,923
Central
Florida
Expressway
Authority
,
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
................................
16,000,000
19,772,320
Revenue,
Senior
Lien,
2019
B,
5%,
7/01/49
..............................
17,000,000
21,443,120
City
of
Atlantic
Beach
,
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/53
.......................................
9,235,000
9,667,660
City
of
Cape
Coral
,
Water
&
Sewer,
Revenue,
2011A,
Pre-Refunded,
AGMC
Insured,
5%,
10/01/42
...
21,510,000
22,722,089
Water
&
Sewer,
Revenue,
2017,
Refunding,
5%,
10/01/39
...................
10,000,000
12,505,000
City
of
Cocoa
,
Water
&
Sewer
,
Revenue
,
2018
B
,
5
%
,
10/01/48
.................
10,325,000
13,032,318
City
of
Deltona
,
Utility
System
,
Revenue
,
2013
,
Refunding
,
AGMC
Insured
,
5.125
%
,
10/01/39
........................................................
5,000,000
5,718,400
City
of
Gainesville
,
Utilities
System,
Revenue,
2017
A,
5%,
10/01/36
..........................
7,150,000
9,020,654
Utilities
System,
Revenue,
2019
A,
5%,
10/01/47
..........................
31,640,000
41,047,838
City
of
Miami
Beach
,
GO,
2019,
Refunding,
4%,
5/01/44
.....................................
15,000,000
17,811,000
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
5
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
City
of
Miami
Beach,
(continued)
Revenue,
2015A,
5%,
9/01/40
........................................
$
11,000,000
$
12,213,300
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
8/15/42
...................
15,000,000
17,754,300
City
of
St.
Petersburg
,
Public
Utility
,
Revenue
,
2018
,
Refunding
,
4
%
,
10/01/43
......
15,000,000
17,713,500
City
of
Sunrise
,
Utility
System
,
Revenue
,
1998
,
Pre-Refunded
,
AMBAC
Insured
,
5.2
%
,
10/01/22
........................................................
420,000
423,326
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/45
..................................................
2,000,000
2,267,600
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
5%,
7/01/50
..................................................
3,000,000
3,731,550
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/35
............
755,000
481,282
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/36
............
800,000
487,560
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/37
............
800,000
466,288
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/38
............
1,050,000
584,083
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/39
............
1,000,000
530,780
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/49
............
5,150,000
1,733,233
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/49
.....
15,000,000
16,131,150
County
of
Miami-Dade
,
Revenue,
2012B,
Refunding,
5%,
10/01/31
..............................
5,000,000
5,419,800
Revenue,
2012B,
Refunding,
5%,
10/01/32
..............................
4,500,000
4,868,730
Revenue,
2012B,
Refunding,
5%,
10/01/35
..............................
3,250,000
3,504,605
Aviation,
Revenue,
2019A,
5%,
10/01/49
................................
22,500,000
27,317,475
Transit
System,
Revenue,
2015,
Refunding,
5%,
7/01/35
....................
7,000,000
8,134,700
Water
&
Sewer
System,
Revenue,
2013A,
Pre-Refunded,
5%,
10/01/42
.........
20,000,000
22,089,400
Water
&
Sewer
System,
Revenue,
2019
B,
4%,
10/01/44
....................
27,500,000
32,742,600
County
of
Osceola
,
Transportation,
Revenue,
2019
A-1,
Refunding,
5%,
10/01/44
.................
2,000,000
2,432,520
Transportation,
Revenue,
2019
A-1,
Refunding,
5%,
10/01/49
.................
2,500,000
3,026,900
County
of
Pinellas
,
Sewer
,
Revenue
,
2003
,
AGMC
Insured
,
5
%
,
10/01/32
.........
610,000
612,227
County
of
Seminole
,
Water
&
Sewer
,
Revenue
,
2019
,
Refunding
,
4
%
,
10/01/40
.....
8,500,000
10,171,270
Escambia
County
Health
Facilities
Authority
,
Baptist
Health
Care
Corp.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/15/45
.........................
16,480,000
18,193,590
Florida
Municipal
Loan
Council
,
Revenue
,
2011D
,
AGMC
Insured
,
5.5
%
,
10/01/41
...
4,750,000
5,014,670
Greater
Orlando
Aviation
Authority
,
Revenue
,
2019
A
,
4
%
,
10/01/49
..............
10,000,000
11,278,900
Hillsborough
County
Aviation
Authority
,
Revenue,
2015-B,
5%,
10/01/44
.......................................
10,000,000
11,240,600
Revenue,
2018
A,
5%,
10/01/48
.......................................
20,000,000
23,956,200
Hillsborough
County
School
Board
,
COP
,
2012A
,
Pre-Refunded
,
5
%
,
7/01/28
......
520,000
567,096
JEA
Electric
System
,
Revenue,
2020
A,
Refunding,
4%,
10/01/35
..............................
5,000,000
6,002,300
Revenue,
2020A-3,
Refunding,
4%,
10/01/38
.............................
9,080,000
11,062,890
Revenue,
2020A-3,
Refunding,
4%,
10/01/39
.............................
9,300,000
11,298,570
Lee
Memorial
Health
System
,
Obligated
Group
,
Revenue
,
2019A-1
,
Refunding
,
5
%
,
4/01/44
.........................................................
4,220,000
5,134,896
Martin
County
Health
Facilities
Authority
,
Martin
Memorial
Medical
Center
Obligated
Group,
Revenue,
2012,
Pre-Refunded,
AGMC
Insured,
5.5%,
11/15/42
......................................
7,600,000
8,116,876
Miami
Beach
Redevelopment
Agency
,
Tax
Allocation
,
2015A
2015B
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/44
...............................................
12,000,000
13,702,440
Miami-Dade
County
Expressway
Authority
,
Revenue,
2013
A,
Refunding,
5%,
7/01/29
...............................
10,000,000
10,728,100
Revenue,
2013
A,
Refunding,
5%,
7/01/32
...............................
6,375,000
6,810,349
Revenue,
A,
5%,
7/01/40
............................................
30,265,000
30,340,057
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
6
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
North
Sumter
County
Utility
Dependent
District
,
Revenue,
Senior
Lien,
2019,
5%,
10/01/49
...............................
$
3,635,000
$
4,501,002
Revenue,
Senior
Lien,
2019,
5%,
10/01/54
...............................
7,000,000
8,634,430
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
10/01/39
.....
6,000,000
7,117,920
Orlando
Health
Obligated
Group,
Revenue,
2019
A,
5%,
10/01/47
.............
5,000,000
6,040,700
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/47
............................................
14,000,000
15,251,740
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020B
,
5
%
,
11/15/42
.......................
500,000
592,645
School
Board
of
Miami-Dade
County
(The)
,
COP
,
2013A
,
5
%
,
5/01/31
............
10,000,000
11,165,300
South
Broward
Hospital
District
,
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/01/45
.....
20,715,000
25,226,106
State
of
Florida
,
GO
,
1999
D
,
Refunding
,
6
%
,
6/01/23
........................
17,500,000
20,400,275
Tampa-Hillsborough
County
Expressway
Authority
,
Revenue
,
2017
,
5
%
,
7/01/47
....
10,000,000
12,121,700
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
10/01/46
..........
5,000,000
6,141,000
Town
of
Davie
,
Water
&
Sewer
,
Revenue
,
2011
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
10/01/32
........................................................
8,575,000
9,047,826
667,703,445
Georgia
3.4%
Albany-Dougherty
Payroll
Development
Authority
,
Darton
Boosters,
Inc.
,
Revenue
,
2010
,
AGMC
Insured
,
5.75
%
,
6/15/41
...................................
5,550,000
5,571,312
Atlanta
Development
Authority
(The)
,
Revenue,
2015A-1,
5.25%,
7/01/44
....................................
3,000,000
3,291,300
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/24
..
6,385,000
7,149,029
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/25
..
6,955,000
8,004,162
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
5,000,000
5,891,300
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/27
..
5,000,000
6,014,050
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
15,040,000
17,153,872
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
15,800,000
18,413,320
Department
of
Aviation,
Revenue,
2010C,
Refunding,
6%,
1/01/30
.............
15,000,000
15,333,450
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/40
...............
29,500,000
34,758,375
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
4%,
11/01/38
..............
13,550,000
16,010,138
Water
&
Wastewater,
Revenue,
2018A,
Refunding,
5%,
11/01/40
..............
4,655,000
5,886,247
Water
&
Wastewater,
Revenue,
2018A,
Refunding,
5%,
11/01/41
..............
4,845,000
6,111,919
Clarke
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
7/01/46
...............................
10,835,000
12,626,784
b
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group,
Revenue,
2020B,
Refunding,
5%,
4/01/37
400,000
495,892
WellStar
Health
System
Obligated
Group,
Revenue,
2020B,
Refunding,
4%,
4/01/39
200,000
226,314
WellStar
Health
System
Obligated
Group,
Revenue,
2020B,
Refunding,
4%,
4/01/41
325,000
365,410
Coweta
County
Development
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019A
,
Refunding
,
5
%
,
7/01/44
...............................
10,000,000
12,225,200
Development
Authority
for
Fulton
County
,
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
........................................................
11,005,000
12,824,897
WellStar
Health
System
Obligated
Group,
Revenue,
2017,
5%,
4/01/47
.........
5,000,000
5,911,650
b
WellStar
Health
System
Obligated
Group,
Revenue,
2020
A,
4%,
4/01/50
........
3,500,000
4,012,715
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.,
Revenue,
2017,
Refunding,
4.125%,
11/01/45
.........
18,500,000
20,736,095
Oglethorpe
Power
Corp.,
Revenue,
2017C,
Refunding,
4.125%,
11/01/45
........
2,500,000
2,802,175
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
7
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
Fayette
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2014A
,
Refunding
,
5
%
,
7/01/39
...............................
$
11,420,000
$
12,870,226
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
5,000,000
5,207,200
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017A
,
Refunding
,
5
%
,
2/15/45
..................
13,040,000
15,389,417
Georgia
Housing
&
Finance
Authority
,
Revenue
,
2020
A
,
Refunding
,
3.05
%
,
12/01/40
2,250,000
2,436,075
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
2,250,000
2,607,345
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007A,
5.5%,
9/15/28
.......................................
5,000,000
6,519,300
Revenue,
2019
A,
5%,
5/15/49
........................................
11,500,000
17,043,115
Medical
Center
Hospital
Authority
,
Columbus
Regional
Healthcare
Obligated
Group
,
Revenue
,
2010
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
8/01/41
.................
7,500,000
7,500,000
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
Refunding,
5%,
1/01/44
...............................
4,580,000
5,597,722
Revenue,
2019
B,
5%,
1/01/59
........................................
4,000,000
4,753,720
Private
Colleges
&
Universities
Authority
,
Emory
University,
Revenue,
2011A,
Pre-Refunded,
5%,
9/01/41
...............
10,000,000
10,517,400
Emory
University,
Revenue,
2013A,
5%,
10/01/43
.........................
10,000,000
11,170,400
Emory
University,
Revenue,
2019B,
Refunding,
5%,
9/01/48
..................
6,005,000
7,751,314
Emory
University,
Revenue,
2020
B,
Refunding,
4%,
9/01/39
.................
2,100,000
2,569,854
Emory
University,
Revenue,
2020
B,
Refunding,
4%,
9/01/40
.................
2,000,000
2,436,340
Emory
University,
Revenue,
2020
B,
Refunding,
4%,
9/01/41
.................
2,250,000
2,731,568
Savannah
Economic
Development
Authority
,
SSU
Community
Development
I
LLC
,
Revenue
,
2010
,
AGMC
Insured
,
5.75
%
,
6/15/41
...........................
10,000,000
10,033,500
Savannah
Hospital
Authority
,
St.
Joseph's/Candler
Health
System
Obligated
Group
,
Revenue
,
2019A
,
Refunding
,
4
%
,
7/01/43
...............................
15,000,000
16,553,700
State
of
Georgia
,
GO
,
2017
A
,
4
%
,
2/01/36
................................
10,000,000
11,885,000
377,388,802
Hawaii
1.0%
City
&
County
Honolulu
,
Wastewater
System,
Revenue,
Senior
Lien,
2011
A&B,
Pre-Refunded,
5%,
7/01/38
10,000,000
10,442,900
Wastewater
System,
Revenue,
Senior
Lien,
2018
A,
5%,
7/01/47
..............
25,000,000
31,096,750
b
City
&
County
of
Honolulu
,
GO
,
2020
C
,
4
%
,
7/01/44
.........................
2,125,000
2,557,756
State
of
Hawaii
,
Airports
System,
Revenue,
2018
A,
5%,
7/01/43
...........................
15,000,000
18,160,650
Airports
System,
Revenue,
2018
A,
5%,
7/01/48
...........................
15,450,000
18,574,917
State
of
Hawaii
Department
of
Budget
&
Finance
,
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
Refunding,
3.2%,
7/01/39
..........
10,000,000
10,537,500
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
3.5%,
10/01/49
..................
17,035,000
17,544,517
108,914,990
Idaho
0.1%
Idaho
Health
Facilities
Authority
,
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/36
........................................................
4,200,000
5,146,134
St.
Luke's
Health
System
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/37
........................................................
3,500,000
4,274,935
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
ID,
4%,
12/01/43
.........
6,000,000
6,871,560
16,292,629
Illinois
3.9%
Chicago
Midway
International
Airport
,
Revenue,
1998
C,
Refunding,
AGMC,
NATL
RE
Insured,
5.5%,
1/01/24
.........
12,950,000
14,135,831
Revenue,
Second
Lien,
2016B,
Refunding,
5%,
1/01/46
.....................
18,420,000
20,856,782
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
8
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien,
2016D,
5.25%,
1/01/42
............................
$
10,000,000
$
11,911,400
Revenue,
Senior
Lien,
2016D,
5%,
1/01/47
..............................
18,000,000
21,016,980
Revenue,
Third
Lien,
2010-C,
AGMC
Insured,
5.25%,
1/01/35
................
39,485,000
39,634,253
Revenue,
Third
Lien,
2011A,
Pre-Refunded,
5.75%,
1/01/39
..................
4,160,000
4,254,182
Revenue,
Third
Lien,
2011A,
5.75%,
1/01/39
.............................
840,000
854,566
Chicago
Park
District
,
GO,
2020
D,
BAM
Insured,
4%,
1/01/37
.................................
1,000,000
1,119,870
GO,
2020
D,
BAM
Insured,
4%,
1/01/38
.................................
1,000,000
1,116,350
GO,
2020
D,
BAM
Insured,
4%,
1/01/39
.................................
1,000,000
1,113,100
GO,
2020C,
BAM
Insured,
4%,
1/01/41
.................................
1,400,000
1,549,646
GO,
2020C,
BAM
Insured,
4%,
1/01/42
.................................
4,300,000
4,746,039
Chicago
Transit
Authority
,
Revenue
,
2011
,
5.25
%
,
12/01/40
....................
10,000,000
10,372,600
City
of
Chicago
,
GO
,
1998
,
NATL
Insured
,
ETM,
5.75
%
,
1/01/23
................
8,955,000
9,776,353
Illinois
Finance
Authority
,
Carle
Foundation
Obligated
Group
(The),
Revenue,
2016
A,
Refunding,
5%,
2/15/45
20,000,000
23,772,800
CHF-
Dekalb
II
LLC,
Revenue,
2011,
6.875%,
10/01/43
......................
15,000,000
15,406,650
CHF-Normal
LLC,
Revenue,
2011,
Pre-Refunded,
7%,
4/01/43
................
7,500,000
7,823,550
Mercy
Health
Corp.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
12/01/46
...
30,000,000
34,038,000
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
8,780,000
10,752,954
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn
.,
12/15/32
......................
3,490,000
2,336,729
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn
.,
12/15/34
......................
1,655,000
1,020,738
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn
.,
6/15/38
.......................
2,325,000
1,225,880
Revenue,
2002
A,
AGMC,
NATL
Insured,
Zero
Cpn
.,
12/15/40
................
6,000,000
3,147,420
Revenue,
NATL
RE
Insured,
ETM,
5.65%,
6/15/22
.........................
5,500,000
6,043,235
Revenue,
2002
B,
NATL
RE
Insured,
5.65%,
6/15/22
.......................
24,500,000
25,983,720
Railsplitter
Tobacco
Settlement
Authority
,
Revenue
,
2010
,
Pre-Refunded
,
6
%
,
6/01/28
14,530,000
15,226,714
Regional
Transportation
Authority
,
Revenue
,
1990A
,
AMBAC
Insured
,
7.2
%
,
11/01/20
170,000
172,609
Southwestern
Illinois
Development
Authority
,
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn
.,
12/01/24
..................................
3,850,000
3,660,965
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn
.,
12/01/26
..................................
7,700,000
7,034,412
St.
Clair
County
School
District
No.
189
East
St.
Louis
,
GO
,
2008
,
Refunding
,
AMBAC
Insured
,
5.125
%
,
1/01/28
............................................
7,135,000
7,144,918
State
of
Illinois
,
GO,
2010,
Refunding,
AGMC
Insured,
5%,
1/01/23
.........................
10,000,000
10,026,600
GO,
2012,
AGMC
Insured,
5%,
3/01/27
.................................
11,500,000
12,074,540
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
4,215,000
4,769,188
GO,
2016,
4%,
6/01/33
.............................................
2,600,000
2,697,032
GO,
2017C,
5%,
11/01/29
...........................................
6,850,000
7,821,330
GO,
2017D,
5%,
11/01/26
...........................................
8,800,000
10,014,048
GO,
2017D,
5%,
11/01/28
...........................................
15,235,000
17,484,143
GO,
2019
C,
4%,
11/01/40
...........................................
2,500,000
2,573,775
GO,
2020,
5.5%,
5/01/30
............................................
3,700,000
4,592,736
GO,
2020,
5.5%,
5/01/39
............................................
7,840,000
9,353,747
GO,
2020,
5.75%,
5/01/45
...........................................
1,250,000
1,500,250
University
of
Illinois
,
Auxiliary
Facilities
System,
Revenue,
2011A,
5.125%,
4/01/36
................
2,950,000
3,017,112
Auxiliary
Facilities
System,
Revenue,
2011A,
5.25%,
4/01/41
.................
5,000,000
5,111,400
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
2018A-1,
5%,
12/01/43
.......................................................
8,550,000
7,906,784
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
2018A-1,
5%,
12/01/54
.......................................................
11,000,000
9,874,810
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
9
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
Village
of
Bolingbrook
,
GO
,
2013A
,
Refunding
,
Zero
Cpn
.,
1/01/36
..............
$
19,000,000
$
9,503,420
425,570,161
Indiana
3.1%
City
of
Indianapolis
,
Department
of
Public
Utilities
Water
System
,
Revenue,
First
Lien
,
2016
B
,
Refunding
,
5
%
,
10/01/37
......................................
15,000,000
18,718,500
Hammond
Multi-School
Building
Corp.
,
Hammond
School
City
,
Revenue
,
2018
,
5
%
,
7/15/38
.........................................................
3,000,000
3,597,240
Indiana
Finance
Authority
,
BHI
Senior
Living
Obligated
Group,
Revenue,
2016
A,
5.25%,
11/15/46
.........
11,955,000
12,729,086
BHI
Senior
Living
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
............
15,000,000
15,895,650
Citizens
Wastewater
of
Westfield
LLC,
Revenue,
2019
A,
Refunding,
5%,
10/01/48
16,665,000
21,084,558
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2011A,
5.25%,
10/01/38
.............
12,000,000
12,661,440
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012A,
5%,
10/01/37
................
5,000,000
5,447,500
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012A,
4%,
10/01/42
................
24,690,000
26,031,655
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2014A,
5%,
10/01/39
................
30,000,000
34,821,300
Deaconess
Health
System
Obligated
Group,
Revenue,
2015A,
Refunding,
5%,
3/01/39
........................................................
5,000,000
5,678,250
Marian
University,
Inc.,
Revenue,
2011,
Pre-Refunded,
6.375%,
9/15/41
.........
12,500,000
13,351,000
Marion
County
Capital
Improvement
Board,
Revenue,
2015A,
Refunding,
5.25%,
2/01/37
........................................................
10,000,000
11,623,600
WVB
East
End
Partners
LLC,
Revenue,
2013A,
5.25%,
1/01/51
...............
20,000,000
21,517,600
Indiana
Municipal
Power
Agency
,
Revenue,
2016
A,
Refunding,
4%,
1/01/42
...............................
5,860,000
6,575,447
Revenue,
2016
A,
Refunding,
5%,
1/01/42
...............................
21,290,000
25,287,198
Indiana
University
,
Revenue
,
2020A
,
Refunding
,
4
%
,
6/01/45
..................
8,525,000
10,328,975
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
2017,
Refunding,
5%,
1/01/40
.................................
23,225,000
28,924,415
Revenue,
2019A,
4%,
2/01/44
........................................
6,050,000
7,296,784
Revenue,
2019A,
5%,
2/01/49
........................................
41,970,000
52,311,408
Northern
Indiana
Commuter
Transportation
District
,
Revenue
,
2016
,
5
%
,
7/01/41
...
6,000,000
7,102,620
340,984,226
Iowa
0.3%
Iowa
Finance
Authority
,
Iowa
Health
System
Obligated
Group,
Revenue,
2018B,
Refunding,
5%,
2/15/48
..
7,500,000
9,102,375
State
Revolving
Fund,
Revenue,
2017,
Refunding,
5%,
8/01/42
...............
16,000,000
20,140,800
29,243,175
Kansas
0.7%
Butler
County
Unified
School
District
No.
490
El
Dorado
,
GO
,
2016
B
,
BAM
Insured
,
4
%
,
9/01/43
......................................................
10,000,000
11,266,600
University
of
Kansas
Hospital
Authority
,
University
of
Kansas
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
3/01/47
.........................
23,115,000
27,674,665
Wyandotte
County-Kansas
City
Unified
Government
,
Utility
System,
Revenue,
2014A,
Refunding,
5%,
9/01/44
....................
3,000,000
3,427,980
Utility
System,
Revenue,
2016-A,
5%,
9/01/45
............................
10,000,000
11,723,900
Utility
System,
Revenue,
2016-C,
Refunding,
5%,
9/01/41
...................
5,000,000
5,986,250
Utility
System,
Revenue,
2016-C,
Refunding,
5%,
9/01/46
...................
16,565,000
19,676,735
79,756,130
Kentucky
0.2%
Kentucky
Municipal
Power
Agency
,
Revenue,
2015A,
Refunding,
NATL
Insured,
5%,
9/01/42
....................
10,000,000
11,301,000
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/35
....................
7,750,000
9,116,403
20,417,403
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
10
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
2.7%
City
of
Shreveport
,
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
$
10,000,000
$
11,984,700
Water
&
Sewer,
Revenue,
Junior
Lien,
2019
B,
AGMC
Insured,
4%,
12/01/44
.....
6,535,000
7,612,360
East
Baton
Rouge
Sewerage
Commission
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
2/01/45
20,000,000
23,765,600
Jefferson
Sales
Tax
District
,
Revenue
,
2019
B
,
AGMC
Insured
,
4
%
,
12/01/42
.......
20,000,000
23,206,000
Lafayette
Consolidated
Government
,
Revenue
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/30
........................................................
5,000,000
5,947,750
Lafayette
Public
Trust
Financing
Authority
,
Ragin
Cajun
Facilities,
Inc.,
Revenue,
2010,
Pre-Refunded,
AGMC
Insured,
5%,
10/01/25
.......................................................
5,500,000
5,542,295
Ragin
Cajun
Facilities,
Inc.,
Revenue,
2010,
Pre-Refunded,
AGMC
Insured,
5.5%,
10/01/35
.......................................................
6,000,000
6,050,880
Ragin
Cajun
Facilities,
Inc.,
Revenue,
2010,
Pre-Refunded,
AGMC
Insured,
5.5%,
10/01/41
.......................................................
15,000,000
15,127,200
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
East
Baton
Rouge
Sewerage
Commission,
Revenue,
Sub.
Lien,
2014-A,
5%,
2/01/44
5,820,000
6,526,082
Louisiana
Community
&
Technical
College
System,
Revenue,
2014,
5%,
10/01/39
.
10,000,000
11,276,000
University
Facilities,
Inc.,
Revenue,
2010A,
AGMC
Insured,
5%,
10/01/40
........
8,545,000
8,600,030
Louisiana
Public
Facilities
Authority
,
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/47
..............................................
35,000,000
40,093,200
b
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
3%,
6/01/50
..............................................
2,525,000
2,622,995
b
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2020
A,
4%,
6/01/50
3,250,000
3,702,433
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/51
..............................................
15,000,000
16,366,650
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/56
..............................................
11,295,000
12,292,461
Ochsner
Clinic
Foundation,
Revenue,
2002B,
ETM,
5.75%,
5/15/23
............
10,000,000
11,507,900
Ochsner
Clinic
Foundation,
Revenue,
2011,
Pre-Refunded,
6.75%,
5/15/41
......
15,500,000
16,288,795
Ochsner
Clinic
Foundation,
Revenue,
2015,
Refunding,
5%,
5/15/47
...........
7,500,000
8,419,875
Ochsner
Clinic
Foundation,
Revenue,
2017,
Refunding,
5%,
5/15/42
...........
20,000,000
23,341,000
b
Tulane
University,
Revenue,
2020
A,
Refunding,
4%,
4/01/40
.................
3,750,000
4,424,738
b
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/45
.................
3,500,000
4,448,745
b
Tulane
University,
Revenue,
2020
A,
Refunding,
4%,
4/01/50
.................
4,000,000
4,616,240
Louisiana
Stadium
&
Exposition
District
,
Revenue
,
2020
,
5
%
,
7/03/23
............
5,700,000
6,058,074
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017B
,
5
%
,
1/01/48
........................................
4,000,000
4,610,720
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
Revenue
,
2019
,
4
%
,
8/01/44
.........................................................
6,000,000
7,249,200
291,681,923
Maine
0.5%
Maine
Health
&
Higher
Educational
Facilities
Authority
,
MaineGeneral
Health
Obligated
Group,
Revenue,
2011,
6.75%,
7/01/36
.........
4,250,000
4,378,180
MaineGeneral
Health
Obligated
Group,
Revenue,
2011,
7%,
7/01/41
...........
10,000,000
10,320,200
MaineHealth
Obligated
Group,
Revenue,
2018A,
5%,
7/01/43
.................
3,000,000
3,607,890
MaineHealth
Obligated
Group,
Revenue,
2020A,
4%,
7/01/50
.................
14,215,000
16,315,693
Maine
Turnpike
Authority
,
Revenue
,
2018
,
5
%
,
7/01/47
.......................
15,500,000
19,324,005
53,945,968
Maryland
1.0%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2013C,
5%,
7/01/38
.....................
5,000,000
5,651,100
Wastewater
Utility
Fund,
Revenue,
2013C,
5%,
7/01/43
.....................
10,000,000
11,242,100
Wastewater
Utility
Fund,
Revenue,
2014C,
5%,
7/01/39
.....................
10,000,000
11,565,100
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
11
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
(continued)
City
of
Baltimore,
(continued)
Wastewater
Utility
Fund,
Revenue,
2014C,
5%,
7/01/44
.....................
$
10,000,000
$
11,486,800
Water
Utility
Fund,
Revenue,
2014A,
5%,
7/01/39
..........................
9,430,000
10,840,445
Water
Utility
Fund,
Revenue,
2014A,
5%,
7/01/44
..........................
5,500,000
6,279,845
Maryland
Community
Development
Administration
,
Housing
,
Revenue
,
2018
A
,
Refunding
,
3.85
%
,
9/01/33
...........................................
5,150,000
5,873,266
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
12,500,000
13,932,375
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/45
..
1,945,000
2,183,418
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.....
3,000,000
3,353,220
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/42
..............
7,500,000
8,763,075
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
1991
B,
NATL
Insured,
ETM,
7%,
7/01/22
.........................................
90,000
99,901
Maryland
State
Transportation
Authority
,
Revenue
,
2020
,
4
%
,
7/01/45
............
13,205,000
15,884,559
107,155,204
Massachusetts
3.5%
Commonwealth
of
Massachusetts
,
GO,
2016G,
4%,
9/01/42
............................................
20,000,000
22,717,200
GO,
2017B,
5%,
4/01/47
............................................
12,335,000
15,126,041
GO,
2018A,
5%,
1/01/41
............................................
15,000,000
18,937,500
GO,
2018A,
5%,
1/01/46
............................................
10,000,000
12,494,200
GO,
2019
A,
5.25%,
1/01/44
..........................................
10,000,000
13,013,600
Transportation
Fund,
Revenue,
2012A,
4%,
6/01/35
........................
10,000,000
10,236,700
Transportation
Fund,
Revenue,
2017A,
5%,
6/01/47
........................
25,055,000
30,691,623
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
15,000,000
18,788,850
Massachusetts
Bay
Transportation
Authority
,
Revenue
,
2005
A
,
5
%
,
7/01/28
.......
10,000,000
13,370,100
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999A,
5.75%,
8/01/29
......................................
450,000
451,832
Revenue,
2002A,
5%,
8/01/32
........................................
225,000
225,742
Massachusetts
Development
Finance
Agency
,
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2018
J-2,
5%,
7/01/53
......
5,000,000
5,938,500
Dana-Farber
Cancer
Institute
Obligated
Group,
Revenue,
2016N,
5%,
12/01/41
...
10,135,000
12,019,502
Partners
Healthcare
System,
Inc.,
Revenue,
2016Q,
Refunding,
5%,
7/01/47
.....
15,000,000
17,772,750
Partners
Healthcare
System,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
...
15,415,000
17,589,594
Wellesley
College,
Revenue,
2012,
5%,
7/01/42
...........................
10,000,000
10,652,700
Wellforce
Obligated
Group,
Revenue,
2020
C,
Refunding,
AGMC
Insured,
4%,
10/01/45
.......................................................
1,250,000
1,427,587
Worcester
Polytechnic
Institute,
Revenue,
2019,
5%,
9/01/59
.................
10,000,000
11,962,400
Massachusetts
Educational
Financing
Authority
,
Revenue,
2009
I,
6%,
1/01/28
........................................
2,340,000
2,373,579
Revenue,
2013K,
5.25%,
7/01/29
......................................
4,570,000
4,846,348
Massachusetts
Health
&
Educational
Facilities
Authority
,
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
1998-A,
Pre-Refunded,
NATL
Insured,
5%,
7/01/25
..............................................
750,000
781,110
Northeastern
University,
Revenue,
2010A,
5%,
10/01/35
....................
20,000,000
20,153,800
Massachusetts
Housing
Finance
Agency
,
Revenue
,
2020
A-1
,
FHA
Insured
,
3
%
,
12/01/45
........................................................
4,000,000
4,230,560
Massachusetts
Port
Authority
,
Revenue,
2019
C,
5%,
7/01/44
........................................
15,000,000
18,597,750
Revenue,
2019
C,
5%,
7/01/49
........................................
10,000,000
12,299,300
Bosfuel
Corp.,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
....................
7,500,000
8,962,575
Massachusetts
School
Building
Authority
,
Revenue,
2018
A,
4%,
2/15/43
........................................
10,750,000
12,487,308
Revenue,
2019A,
5%,
2/15/49
........................................
25,000,000
29,726,750
Revenue,
2020
A,
4%,
8/15/45
........................................
12,000,000
14,520,360
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
12
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Massachusetts
(continued)
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien,
2014-1,
Pre-Refunded,
5%,
11/01/39
..................
$
3,610,000
$
4,343,227
Revenue,
Senior
Lien,
2014-1,
5%,
11/01/39
.............................
16,390,000
18,962,738
385,701,826
Michigan
2.8%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006B,
NATL
Insured,
5%,
7/01/36
...................................
10,000
10,034
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2012A,
Pre-Refunded,
AGMC
Insured,
5%,
7/01/39
.......................
10,000,000
10,925,900
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2012A,
Pre-Refunded,
5.25%,
7/01/39
................................
12,000,000
13,168,200
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
2003-A,
NATL
Insured,
5%,
7/01/34
.........................................
10,000
10,034
Detroit
City
School
District
,
GO,
2012A,
Refunding,
5%,
5/01/30
....................................
1,245,000
1,338,188
GO,
2012A,
Refunding,
5%,
5/01/33
....................................
1,500,000
1,604,940
Michigan
Finance
Authority
,
Beaumont
Health
Obligated
Group,
Revenue,
2016A,
5%,
11/01/44
............
20,925,000
24,054,543
Bronson
Healthcare
Group
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/54
........................................................
30,000,000
34,272,000
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2019A,
5%,
11/15/48
.....
25,920,000
32,164,906
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
2/15/44
.....
20,000,000
22,903,000
Trinity
Health
Corp.
Obligated
Group,
Revenue,
Pre-Refunded,
5%,
12/01/39
.....
29,750,000
31,646,763
Michigan
State
Building
Authority
,
Revenue,
2011
I-A,
Refunding,
5.375%,
10/15/36
..........................
6,730,000
7,122,494
Revenue,
2013
1-A,
Refunding,
5.25%,
10/15/44
..........................
20,655,000
23,548,352
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
2010F-7,
Refunding,
5%,
11/15/47
.....
10,000,000
11,916,700
Trinity
Health
Corp.
Obligated
Group,
Revenue,
Pre-Refunded,
5%,
12/01/34
.....
10,000,000
10,877,061
Michigan
State
Housing
Development
Authority
,
Revenue
,
2019
A-1
,
3.25
%
,
10/01/44
3,450,000
3,716,685
Michigan
Strategic
Fund
,
DTE
Electric
Co.,
Revenue,
BB,
Refunding,
AMBAC
Insured,
7%,
5/01/21
.......
250,000
262,147
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
12/31/43
...
10,000,000
11,284,000
United
Methodist
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/49
...........................................
6,000,000
6,327,600
Michigan
Tobacco
Settlement
Finance
Authority
,
Michigan
Finance
Authority
Tobacco
Settlement
,
Revenue
,
2007A
,
6
%
,
6/01/34
...............................
40,000,000
40,010,400
Pontiac
School
District
,
GO,
2020,
4%,
5/01/45
.............................................
7,940,000
9,251,370
GO,
2020,
4%,
5/01/50
.............................................
8,665,000
10,034,157
306,449,474
Minnesota
0.1%
City
of
St.
Cloud
,
CentraCare
Health
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
5/01/48
.............................................
10,000,000
12,298,000
Mississippi
0.7%
Medical
Center
Educational
Building
Corp.
,
Mississippi
State
Institutions
of
Higher
Learning
,
Revenue
,
2017
,
Refunding
,
5
%
,
6/01/47
.........................
25,000,000
29,960,500
Mississippi
Development
Bank
,
City
of
Jackson
Water
&
Sewer
System
,
Revenue
,
2013
,
AGMC
Insured
,
6.875
%
,
12/01/40
.................................
3,400,000
4,000,338
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016A,
5%,
9/01/36
....
6,350,000
7,369,683
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
13
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Mississippi
(continued)
Mississippi
Hospital
Equipment
&
Facilities
Authority,
(continued)
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016A,
5%,
9/01/46
....
$
30,000,000
$
34,222,200
75,552,721
Missouri
0.9%
Bi-State
Development
Agency
of
the
Missouri-Illinois
Metropolitan
District
,
Revenue
,
2020A
,
Refunding
,
4
%
,
10/01/44
......................................
6,000,000
7,122,900
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
4,000,000
4,272,680
Mercy
Health,
Revenue,
2014F,
5%,
11/15/45
.............................
25,000,000
28,153,000
SSM
Health
Care
Obligated
Group,
Revenue,
2018A,
5%,
6/01/48
.............
7,500,000
8,978,925
Kansas
City
Industrial
Development
Authority
,
Airport,
Revenue,
2019
B,
5%,
3/01/46
..................................
16,000,000
19,068,160
Airport,
Revenue,
2019
B,
5%,
3/01/54
..................................
23,500,000
27,852,670
95,448,335
Montana
0.2%
Montana
Facility
Finance
Authority
,
Benefis
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
2/15/41
.
2,650,000
3,132,538
Billings
Clinic
Obligated
Group,
Revenue,
2018A,
Refunding,
5%,
8/15/48
.......
10,000,000
12,560,300
Kalispell
Regional
Medical
Center
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
7/01/43
....................................................
6,440,000
7,520,890
23,213,728
Nebraska
0.8%
Douglas
County
Hospital
Authority
No.
2
,
Children's
Hospital
Obligated
Group
,
Revenue
,
2017A
,
5
%
,
11/15/47
.......................................
10,000,000
11,801,100
Hospital
Authority
No.
1
of
Lancaster
County
,
Bryan
Medical
Center
Obligated
Group
,
Revenue
,
1992
,
NATL
Insured
,
ETM,
6.7
%
,
6/01/22
........................
635,000
683,286
Omaha
Public
Power
District
,
Revenue
,
2011
B
,
Pre-Refunded
,
5
%
,
2/01/39
.......
23,305,000
23,860,358
Omaha
Public
Power
District
Nebraska
City
Station
Unit
2
,
Revenue,
2015A,
Refunding,
5.25%,
2/01/42
.............................
10,000,000
11,821,600
Revenue,
2016
A,
Refunding,
5%,
2/01/49
...............................
10,000,000
11,751,400
Public
Power
Generation
Agency
,
Revenue,
2016
A,
Refunding,
5%,
1/01/39
...............................
7,340,000
8,910,026
Revenue,
2016
A,
Refunding,
5%,
1/01/41
...............................
5,140,000
6,229,474
University
of
Nebraska
,
Revenue,
2011,
Pre-Refunded,
5%,
7/01/37
..............................
5,000,000
5,342,500
Revenue,
2011,
Pre-Refunded,
5%,
7/01/42
..............................
7,500,000
8,013,750
88,413,494
Nevada
0.3%
City
of
Carson
City
,
Carson
Tahoe
Regional
Healthcare
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
9/01/47
........................................
2,775,000
3,200,851
City
of
Henderson
,
GO
,
2020A-1
,
4
%
,
6/01/45
..............................
10,000,000
11,946,000
City
of
Reno
,
Renown
Regional
Medical
Center
,
Revenue
,
2004C
,
AGMC
Insured
,
5.375
%
,
6/01/39
...................................................
1,535,000
1,538,362
Clark
County
School
District
,
GO,
2020A,
AGMC
Insured,
4%,
6/15/36
................................
750,000
897,420
GO,
2020A,
AGMC
Insured,
4%,
6/15/37
................................
875,000
1,043,289
GO,
2020A,
AGMC
Insured,
4%,
6/15/38
................................
850,000
1,010,250
GO,
2020A,
AGMC
Insured,
4%,
6/15/39
................................
1,000,000
1,185,010
GO,
2020A,
AGMC
Insured,
4%,
6/15/40
................................
725,000
856,762
Las
Vegas
Convention
&
Visitors
Authority
,
Revenue
,
2018
B
,
5
%
,
7/01/43
........
10,000,000
11,577,900
33,255,844
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
14
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Hampshire
0.3%
New
Hampshire
Health
and
Education
Facilities
Authority
Act
,
Concord
Hospital
Obligated
Group,
Revenue,
2017,
5%,
10/01/47
.............
$
6,000,000
$
7,006,920
Elliot
Hospital
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
10/01/38
.......
4,000,000
4,642,680
University
System
of
New
Hampshire,
Revenue,
2015,
Refunding,
5%,
7/01/45
...
10,350,000
11,911,401
New
Hampshire
Municipal
Bond
Bank
,
Revenue
,
2010B
,
Pre-Refunded
,
5
%
,
8/15/39
11,250,000
11,266,538
34,827,539
New
Jersey
1.4%
New
Jersey
Economic
Development
Authority
,
Revenue,
2019
LLL,
4%,
6/15/44
......................................
2,200,000
2,378,244
New
Jersey
Transit
Corp.,
Revenue,
2020
A,
5%,
11/01/44
...................
7,200,000
8,375,112
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2013
NN,
Refunding,
5%,
3/01/28
........................................................
22,000,000
23,662,540
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018EEE,
4.625%,
6/15/48
........................................................
2,000,000
2,228,080
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018EEE,
5%,
6/15/48
8,000,000
9,162,000
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/41
....
26,000,000
29,210,740
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey
,
Revenue
,
2016
B
,
5
%
,
9/01/36
......................................................
14,000,000
15,806,700
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
Senior
Lien
,
2020B
,
3.5
%
,
12/01/39
..............................................
8,000,000
8,188,480
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006C,
NATL
Insured,
Zero
Cpn
.,
12/15/31
.......................
6,275,000
4,588,343
Revenue,
2010A,
Zero
Cpn
.,
12/15/40
..................................
4,750,000
2,369,965
Revenue,
2011B,
5.25%,
6/15/36
......................................
10,000,000
10,253,600
Revenue,
2013AA,
5%,
6/15/44
.......................................
1,000,000
1,067,170
Revenue,
2014
BB-1,
5%,
6/15/31
.....................................
3,000,000
3,599,340
Revenue,
2015AA,
5%,
6/15/45
.......................................
15,000,000
16,359,600
Revenue,
2019
BB,
4%,
6/15/38
.......................................
2,000,000
2,165,980
Revenue,
2019
BB,
5%,
6/15/44
.......................................
5,150,000
5,924,612
New
Jersey
Turnpike
Authority
,
Revenue
,
2015
E
,
5
%
,
1/01/45
.................
11,475,000
12,933,587
158,274,093
New
Mexico
0.3%
New
Mexico
Hospital
Equipment
Loan
Council
,
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2015A,
5%,
8/01/44
.
10,000,000
11,518,800
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
8/01/46
....................................................
15,000,000
18,190,350
29,709,150
New
York
12.8%
City
of
New
York
,
GO,
2002
D,
5.5%,
6/01/24
..........................................
180,000
180,731
GO,
2003
F,
5.25%,
1/15/23
..........................................
5,000
5,019
GO,
2018
E-1,
5%,
3/01/40
..........................................
14,570,000
18,038,534
GO,
2020
D-1,
4%,
3/01/44
..........................................
4,250,000
4,979,640
Hudson
Yards
Infrastructure
Corp.
,
Revenue,
Senior
Lien,
2012A,
Pre-Refunded,
AGMC
Insured,
5%,
2/15/47
.......
730,000
748,848
Revenue,
Senior
Lien,
2012A,
AGMC
Insured,
5%,
2/15/47
..................
15,745,000
16,098,633
Long
Island
Power
Authority
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
9/01/46
..........
13,000,000
15,595,710
Metropolitan
Transportation
Authority
,
Revenue,
2010D,
Pre-Refunded,
5%,
11/15/34
............................
10,000,000
10,138,300
Revenue,
2010D,
Pre-Refunded,
5.25%,
11/15/40
.........................
15,000,000
15,217,950
Revenue,
2011D,
Pre-Refunded,
5%,
11/15/36
............................
9,500,000
10,094,320
Revenue,
2012A-1,
5%,
11/15/40
......................................
30,000,000
31,413,000
Revenue,
2013A,
5%,
11/15/38
.......................................
11,800,000
12,360,264
Revenue,
2013B,
5%,
11/15/43
.......................................
8,000,000
8,386,320
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
Metropolitan
Transportation
Authority,
(continued)
Revenue,
2015A,
5%,
11/15/40
.......................................
$
7,000,000
$
7,536,830
Revenue,
2015D-1,
Refunding,
5%,
11/15/32
.............................
1,250,000
1,362,700
Revenue,
2016C-1,
5.25%,
11/15/56
...................................
14,765,000
16,270,292
Revenue,
2017
B,
Refunding,
5%,
11/15/28
..............................
4,425,000
5,105,255
Revenue,
2017
C-2,
Refunding,
Zero
Cpn
.,
11/15/29
.......................
2,090,000
1,556,611
Revenue,
2017C-1,
Refunding,
5%,
11/15/33
.............................
1,630,000
1,832,984
Revenue,
2019
A-2,
5%,
11/15/45
.....................................
46,270,000
52,044,496
Revenue,
2020
A-1,
4%,
11/15/45
.....................................
10,000,000
10,495,300
Revenue,
2020
A-1,
5%,
11/15/49
.....................................
6,820,000
7,804,603
Revenue,
2020
C-1,
4.75%,
11/15/45
...................................
6,195,000
6,923,904
Revenue,
2020
C-1,
5%,
11/15/50
.....................................
8,000,000
9,183,680
Revenue,
2020
C-1,
5.25%,
11/15/55
...................................
24,500,000
27,957,195
b
Monroe
County
Industrial
Development
Corp.
,
University
of
Rochester
,
Revenue
,
2020A
,
4
%
,
7/01/50
................................................
5,000,000
5,869,200
New
York
City
,
Water
&
Sewer
System,
Revenue,
2011GG,
Pre-Refunded,
5%,
6/15/43
.........
25,000,000
26,048,500
Water
&
Sewer
System,
Revenue,
2012
AA,
Pre-Refunded,
5%,
6/15/34
........
10,000,000
10,419,400
Water
&
Sewer
System,
Revenue,
2012
AA,
Pre-Refunded,
5%,
6/15/44
........
21,550,000
22,453,807
Water
&
Sewer
System,
Revenue,
2013
DD,
5%,
6/15/35
....................
30,705,000
34,477,417
Water
&
Sewer
System,
Revenue,
2014-BB,
5%,
6/15/46
....................
15,000,000
16,724,850
Water
&
Sewer
System,
Revenue,
2015
FF,
Refunding,
5%,
6/15/39
............
10,000,000
11,913,600
Water
&
Sewer
System,
Revenue,
2015
HH,
Refunding,
5%,
6/15/39
...........
15,000,000
17,870,400
Water
&
Sewer
System,
Revenue,
2017
CC,
Refunding,
5%,
6/15/46
...........
32,500,000
39,261,950
Water
&
Sewer
System,
Revenue,
2019
DD-1,
5.25%,
6/15/49
................
12,000,000
15,327,120
Water
&
Sewer
System,
Revenue,
2020
DD-1,
4%,
6/15/50
..................
8,000,000
9,583,120
New
York
City
Transitional
Finance
Authority
,
Building
Aid,
Revenue,
2011S-2A,
5%,
7/15/40
............................
35,000,000
36,360,450
Building
Aid,
Revenue,
2012
S-1A,
5.25%,
7/15/37
.........................
30,300,000
31,593,204
Future
Tax
Secured,
Revenue,
2011C,
5%,
11/01/39
.......................
15,000,000
15,153,000
Future
Tax
Secured,
Revenue,
2014A-1,
5%,
11/01/34
......................
15,000,000
17,035,200
Future
Tax
Secured,
Revenue,
2016
E-1,
5%,
2/01/38
......................
10,000,000
11,990,000
Future
Tax
Secured,
Revenue,
2017
F-1,
5%,
5/01/42
......................
11,095,000
13,527,135
Future
Tax
Secured,
Revenue,
2017B,
5%,
8/01/36
........................
10,000,000
12,192,600
Future
Tax
Secured,
Revenue,
2017B,
5%,
8/01/38
........................
10,000,000
12,153,900
Future
Tax
Secured,
Revenue,
2018
C-2,
5%,
5/01/38
......................
11,945,000
15,048,908
Future
Tax
Secured,
Revenue,
2018C-3,
4%,
5/01/43
.......................
19,800,000
22,872,366
Future
Tax
Secured,
Revenue,
2020
B-1,
4%,
11/01/45
.....................
5,200,000
6,109,116
Future
Tax
Secured,
Revenue,
2020
B-1,
4%,
11/01/47
.....................
10,000,000
11,724,000
Future
Tax
Secured,
Revenue,
2020C,
4%,
5/01/45
........................
3,500,000
4,175,745
New
York
Liberty
Development
Corp.
,
Revenue,
2011
-
1WTC,
5.25%,
12/15/43
................................
25,000,000
26,286,750
7
World
Trade
Center
II
LLC,
Revenue,
2012,
2,
Refunding,
5%,
9/15/43
........
6,500,000
6,913,855
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
40,000,000
56,498,800
Goldman
Sachs
Headquarters
LLC,
Revenue,
2007,
5.5%,
10/01/37
...........
24,995,000
36,782,142
New
York
Power
Authority
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/15/45
...........
8,055,000
9,752,994
New
York
State
Dormitory
Authority
,
Revenue,
2015B,
5%,
2/15/40
........................................
20,000,000
23,346,000
Revenue,
2018
E,
5%,
3/15/46
........................................
73,125,000
91,392,356
Revenue,
2018
E,
Pre-Refunded,
5%,
3/15/46
............................
5,000
6,859
State
of
New
York
Personal
Income
Tax,
Revenue,
2013A,
Pre-Refunded,
5%,
2/15/36
........................................................
15,000,000
16,845,000
State
of
New
York
Personal
Income
Tax,
Revenue,
2017B,
Refunding,
5%,
2/15/42
24,410,000
30,007,701
State
of
New
York
Personal
Income
Tax,
Revenue,
2019
D,
Refunding,
4%,
2/15/47
50,000,000
58,618,500
State
of
New
York
Sales
Tax,
Revenue,
2017
A,
5%,
3/15/43
.................
10,000,000
12,156,200
State
of
New
York
Sales
Tax,
Revenue,
2018
C,
Refunding,
5%,
3/15/42
........
33,280,000
41,420,954
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/42
........
59,480,000
74,925,766
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
New
York
State
Dormitory
Authority,
(continued)
State
of
New
York
Sales
Tax,
Revenue,
2018A,
5%,
3/15/45
..................
$
25,000,000
$
30,925,750
State
University
of
New
York,
Revenue,
2011A,
Pre-Refunded,
5%,
7/01/41
......
10,000,000
10,444,800
New
York
State
Thruway
Authority
,
Revenue,
2019
B,
4%,
1/01/45
........................................
20,000,000
23,051,800
Revenue,
Junior
Lien,
2016
A,
5%,
1/01/51
..............................
9,000,000
10,389,060
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax,
Revenue,
2011A,
5%,
3/15/31
.........
10,000,000
10,268,500
State
of
New
York
Personal
Income
Tax,
Revenue,
2019
A,
4%,
3/15/47
.........
15,200,000
17,410,992
State
of
New
York
Personal
Income
Tax,
Revenue,
2020
A,
4%,
3/15/45
.........
12,000,000
14,173,800
State
of
New
York
Personal
Income
Tax,
Revenue,
2020
C,
Refunding,
4%,
3/15/45
5,000,000
5,905,750
State
of
New
York
Personal
Income
Tax,
Revenue,
2020
C,
Refunding,
4%,
3/15/49
10,000,000
11,749,300
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
179,
5%,
12/01/38
.........................................
20,000,000
22,290,200
Revenue,
218,
4%,
11/01/47
.........................................
8,000,000
9,067,840
Revenue,
221,
4%,
7/15/45
..........................................
5,500,000
6,290,075
Suffolk
County
Water
Authority
,
Revenue
,
2020
B
,
3
%
,
6/01/45
.................
15,000,000
16,349,850
Triborough
Bridge
&
Tunnel
Authority
,
Revenue,
1999-B,
Pre-Refunded,
5.5%,
1/01/30
...........................
13,970,000
14,992,464
Revenue,
2020
A,
5%,
11/15/54
.......................................
8,500,000
10,862,915
1,410,343,080
North
Carolina
1.3%
City
of
Raleigh
,
Combined
Enterprise
System
,
Revenue
,
2011
,
Pre-Refunded
,
5
%
,
3/01/40
.........................................................
15,830,000
16,275,773
County
of
Wake
,
GO
,
2010-C
,
Refunding
,
5
%
,
3/01/25
.......................
21,780,000
26,529,129
North
Carolina
Eastern
Municipal
Power
Agency
,
Revenue,
1993
B,
ETM,
6%,
1/01/22
...................................
1,250,000
1,352,462
Revenue,
1993
B,
ETM,
6.25%,
1/01/23
.................................
39,030,000
44,710,426
North
Carolina
Turnpike
Authority
,
Revenue,
2009B,
AGMC
Insured,
Zero
Cpn
.,
1/01/33
.......................
25,000,000
18,721,500
Revenue,
2009B,
AGMC
Insured,
Zero
Cpn
.,
1/01/34
.......................
15,000,000
10,817,100
Revenue,
2009B,
AGMC
Insured,
Zero
Cpn
.,
1/01/35
.......................
15,215,000
10,598,465
Revenue,
2018A,
Refunding,
4%,
1/01/39
...............................
10,000,000
11,712,400
140,717,255
North
Dakota
0.4%
North
Dakota
Housing
Finance
Agency
,
Revenue,
2019F,
3.05%,
7/01/43
......................................
2,480,000
2,657,791
Revenue,
2020
A,
3%,
7/01/40
........................................
2,500,000
2,721,075
State
Board
of
Higher
Education
of
the
State
of
North
Dakota
,
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/44
............................
10,000,000
11,763,300
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/50
............................
9,620,000
11,209,898
University
of
North
Dakota
,
COP,
2018
A,
5%,
4/01/48
...........................................
5,500,000
6,615,620
COP,
2018
A,
5%,
4/01/57
...........................................
10,000,000
11,845,200
46,812,884
Ohio
3.8%
American
Municipal
Power,
Inc.
,
Revenue,
2015A,
Refunding,
5%,
2/15/39
...............................
5,000,000
5,612,700
Revenue,
2015A,
Refunding,
5%,
2/15/42
...............................
2,500,000
2,796,275
Revenue,
2016A,
Refunding,
5%,
2/15/46
...............................
20,000,000
23,234,200
Revenue,
2019
C,
Refunding,
4%,
2/15/39
...............................
18,795,000
22,186,370
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
A-3,
Pre-Refunded,
6.25%,
6/01/37
.............................
15,000,000
16,661,100
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
Buckeye
Tobacco
Settlement
Financing
Authority,
(continued)
Revenue,
Senior
Lien,
2020A-2,
1,
Refunding,
4%,
6/01/48
..................
$
10,235,000
$
11,460,641
City
of
Akron
,
Community
Learning
Center
Income
Tax
,
Revenue
,
2012
A
,
Refunding
,
5
%
,
12/01/29
.....................................................
10,000,000
10,823,900
City
of
Cleveland
,
Airport
System
,
Revenue
,
2012A
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
1/01/28
......................................................
9,500,000
10,150,750
b
City
of
Middleburg
Heights
,
Southwest
General
Health
Center
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/47
.............................................
4,430,000
5,116,296
City
of
Toledo
,
Water
System
,
Revenue
,
2013
,
Refunding
,
5
%
,
11/15/38
..........
20,000,000
22,251,600
Cleveland-Cuyahoga
County
Port
Authority
,
County
of
Cuyahoga
,
Revenue
,
2013
,
5
%
,
7/01/37
.........................................................
6,000,000
8,618,400
County
of
Butler
,
UC
Health
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/45
........................................................
7,500,000
8,765,475
County
of
Franklin
,
OhioHealth
Obligated
Group,
Revenue,
2015,
5%,
5/15/40
...................
10,000,000
11,503,200
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
10,000,000
11,981,100
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
A-OH,
5%,
12/01/47
.......
10,800,000
13,076,748
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
12/01/44
..........
5,640,000
6,520,573
County
of
Hamilton
,
Christ
Hospital
Obligated
Group,
Revenue,
2012,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/42
........................................................
22,500,000
24,475,050
Sewer
System,
Revenue,
2013A,
Refunding,
5%,
12/01/38
..................
12,000,000
13,625,400
UC
Health
Obligated
Group,
Revenue,
2020,
5%,
9/15/50
...................
7,500,000
9,026,700
Kent
State
University
,
Revenue
,
2012
A
,
Pre-Refunded
,
5
%
,
5/01/37
.............
10,500,000
11,389,245
Miami
University
,
Revenue
,
2020A
,
Refunding
,
4
%
,
9/01/45
....................
6,030,000
7,153,932
Northeast
Ohio
Regional
Sewer
District
,
Revenue,
2017,
Refunding,
4%,
11/15/38
................................
10,000,000
11,901,800
Revenue,
2017,
Refunding,
4%,
11/15/43
................................
10,000,000
11,686,900
Ohio
Air
Quality
Development
Authority
,
Buckeye
Power,
Inc.
,
Revenue
,
2010
,
6
%
,
12/01/40
........................................................
15,000,000
15,274,950
Ohio
Higher
Educational
Facility
Commission
,
Summa
Health
System
Obligated
Group
,
Revenue
,
2010
,
AGMC
Insured
,
5.25
%
,
11/15/40
..........................
15,000,000
15,037,800
Ohio
State
University
(The)
,
Revenue
,
2013A
,
5
%
,
6/01/38
....................
10,000,000
11,037,100
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
2018
A,
5%,
2/15/43
........................................
20,000,000
25,041,000
Revenue,
Junior
Lien,
2013
A-4,
Zero
Cpn
.,
2/15/35
........................
35,000,000
43,281,700
State
of
Ohio
,
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2017A,
Refunding,
4%,
1/01/36
........................................................
6,500,000
7,566,000
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2019B,
4%,
1/01/43
..
12,130,000
14,151,464
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2012
A,
AGMC
Insured,
5%,
1/15/41
..............................................
7,000,000
7,321,930
418,730,299
Oklahoma
0.2%
Edmond
Public
Works
Authority
,
Revenue,
2017,
5%,
7/01/42
.........................................
4,000,000
4,922,440
Revenue,
2017,
5%,
7/01/47
.........................................
4,500,000
5,477,670
McGee
Creek
Authority
,
Revenue
,
1992
,
NATL
Insured
,
6
%
,
1/01/23
.............
120,000
128,947
Norman
Regional
Hospital
Authority
,
Obligated
Group
,
Revenue
,
2019
,
5
%
,
9/01/45
.
3,500,000
4,199,230
Oklahoma
Water
Resources
Board
,
Revenue
,
2020
A
,
4
%
,
10/01/45
.............
4,000,000
4,815,920
19,544,207
Oregon
1.5%
Clackamas
&
Washington
Counties
School
District
No.
3
,
GO,
2020
A,
Refunding,
Zero
Cpn
.,
6/15/43
..............................
3,250,000
1,793,350
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Oregon
(continued)
Clackamas
&
Washington
Counties
School
District
No.
3,
(continued)
GO,
2020
A,
Refunding,
Zero
Cpn
.,
6/15/45
..............................
$
3,200,000
$
1,643,296
GO,
2020
A,
Refunding,
Zero
Cpn
.,
6/15/46
..............................
2,500,000
1,241,900
GO,
2020
A,
Refunding,
Zero
Cpn
.,
6/15/47
..............................
4,650,000
2,234,976
GO,
2020
A,
Refunding,
Zero
Cpn
.,
6/15/50
..............................
2,000,000
867,960
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group,
Revenue,
2005A,
AGMC
Insured,
5%,
8/15/40
........................................................
4,935,000
4,942,304
Asante
Health
System
Obligated
Group,
Revenue,
2020A,
Refunding,
5%,
8/15/50
4,000,000
5,067,880
Oregon
City
School
District
No.
62
,
GO
,
2018
B
,
Refunding
,
5
%
,
6/15/49
..........
20,000,000
25,108,000
Oregon
Health
&
Science
University
,
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/44
......................................................
1,685,000
1,986,699
Port
of
Portland
,
Airport
,
Revenue
,
25B
,
5
%
,
7/01/49
.........................
12,720,000
15,369,576
Salem
Hospital
Facility
Authority
,
Salem
Health
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/15/44
.............................................
16,880,000
21,067,253
Salem-Keizer
School
District
No.
24J
,
GO,
2020
A,
Zero
Cpn
.,
6/15/39
.......................................
2,800,000
1,773,660
GO,
2020
A,
Zero
Cpn
.,
6/15/40
.......................................
4,500,000
2,751,030
State
of
Oregon
,
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019A,
Refunding,
4%,
11/15/42
15,000,000
17,954,550
Housing
&
Community
Services
Department,
Revenue,
2018
A,
3.6%,
1/01/33
....
9,145,000
10,188,079
Housing
&
Community
Services
Department,
Revenue,
2018
D,
3.8%,
7/01/34
....
8,750,000
10,017,612
University
of
Oregon
,
Revenue,
2018A,
5%,
4/01/48
........................................
14,500,000
17,879,370
Revenue,
2020A,
5%,
4/01/50
........................................
15,000,000
19,285,350
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn
.,
6/15/41
.......................................
5,725,000
2,808,914
GO,
2018
A,
Zero
Cpn
.,
6/15/42
.......................................
5,900,000
2,768,280
GO,
2018
A,
Zero
Cpn
.,
6/15/43
.......................................
5,500,000
2,467,355
169,217,394
Pennsylvania
2.3%
Allegheny
County
Sanitary
Authority
,
Revenue
,
2013
,
BAM
Insured
,
5.25
%
,
12/01/44
5,000,000
5,757,300
Bucks
County
Water
and
Sewer
Authority
,
Revenue,
2011,
Pre-Refunded,
AGMC
Insured,
5%,
12/01/33
.................
5,500,000
5,854,475
Revenue,
2011,
Pre-Refunded,
AGMC
Insured,
5%,
12/01/37
.................
10,520,000
11,198,014
Revenue,
2011,
Pre-Refunded,
AGMC
Insured,
5%,
12/01/41
.................
5,110,000
5,439,339
City
of
Philadelphia
,
Water
&
Wastewater,
Revenue,
2010C,
Pre-Refunded,
AGMC
Insured,
5%,
8/01/40
7,000,000
7,000,000
Water
&
Wastewater,
Revenue,
2015A,
5%,
7/01/45
........................
15,000,000
17,037,150
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development,
Revenue,
2013
A-2,
Pre-Refunded,
5%,
6/01/42
..............
5,400,000
5,874,012
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development,
Revenue,
2015A,
5%,
6/01/33
............................
4,550,000
5,376,962
Commonwealth
of
Pennsylvania
,
GO,
First
Series
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
8/15/26
......................................................
20,805,000
25,545,211
b
County
of
Allegheny
,
GO
,
C-78
,
4
%
,
11/01/45
..............................
4,000,000
4,828,120
County
of
Lackawanna
,
GO,
2010B,
AGMC
Insured,
5%,
9/01/35
................................
2,850,000
2,860,374
GO,
2010B,
Pre-Refunded,
AGMC
Insured,
5%,
9/01/35
.....................
4,650,000
4,666,043
Delaware
County
Regional
Water
Quality
Control
Authority
,
Revenue,
2016,
5%,
11/01/41
........................................
5,000,000
6,113,050
Revenue,
2016,
5%,
11/01/46
........................................
10,315,000
12,535,304
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Erie
City
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
12/01/43
..............
$
5,000,000
$
6,050,600
Geisinger
Authority
,
Geisinger
Health
System
Obligated
Group
,
Revenue
,
2020A
,
Refunding
,
4
%
,
4/01/39
.............................................
3,500,000
4,114,145
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
657,612
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,000,000
1,183,080
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018A,
Refunding,
5%,
12/01/48
.......................................................
9,000,000
9,409,050
Montour
School
District
,
GO,
2015A
&
B,
AGMC
Insured,
5%,
4/01/40
.............................
3,170,000
3,754,580
GO,
2015A
&
B,
AGMC
Insured,
5%,
4/01/41
.............................
2,000,000
2,363,340
GO,
2015A
&
B,
AGMC
Insured,
5%,
4/01/42
.............................
2,000,000
2,356,780
Pennsylvania
Economic
Development
Financing
Authority
,
Aqua
Pennsylvania,
Inc.
,
Revenue
,
2010B
,
5
%
,
12/01/43
.......................................
20,000,000
20,175,600
b
Pennsylvania
Higher
Educational
Facilities
Authority
,
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
5/01/40
.....
3,575,000
4,246,742
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
5/01/41
.....
5,425,000
6,423,634
Pennsylvania
Turnpike
Commission
,
Revenue
,
2009C
,
AGMC
Insured
,
6.25
%
,
6/01/33
5,000,000
6,479,550
School
District
of
Philadelphia
(The)
,
GO,
2016F,
Refunding,
5%,
9/01/33
....................................
6,415,000
7,741,365
GO,
2016F,
Refunding,
5%,
9/01/36
....................................
4,090,000
4,904,033
Sports
&
Exhibition
Authority
of
Pittsburgh
and
Allegheny
County
,
Revenue
,
2010
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/35
.................................
18,000,000
18,033,840
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The)
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/32
...........................
10,000,000
12,148,300
Westmoreland
County
Municipal
Authority
,
Revenue
,
2016
,
Refunding
,
BAM
Insured
,
5
%
,
8/15/42
......................................................
17,205,000
20,324,439
250,452,044
Rhode
Island
0.4%
Rhode
Island
Health
and
Educational
Building
Corp.
,
Lifespan
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
5/15/39
............
5,500,000
6,025,195
Town
of
East
Greenwich,
Revenue,
2012
A,
5%,
5/15/37
....................
10,000,000
10,748,300
University
of
Rhode
Island,
Revenue,
2010B,
Pre-Refunded,
AGMC
Insured,
5%,
9/15/30
........................................................
7,535,000
7,576,216
University
of
Rhode
Island,
Revenue,
2010B,
Pre-Refunded,
AGMC
Insured,
5%,
9/15/35
........................................................
4,500,000
4,524,615
University
of
Rhode
Island,
Revenue,
2010B,
Pre-Refunded,
AGMC
Insured,
5%,
9/15/40
........................................................
10,270,000
10,326,177
Rhode
Island
Housing
and
Mortgage
Finance
Corp.
,
Revenue,
10-A,
6.5%,
10/01/22
.......................................
170,000
170,665
Revenue,
10-A,
6.5%,
4/01/27
........................................
130,000
130,490
Revenue,
15-A,
6.85%,
10/01/24
......................................
120,000
120,523
39,622,181
South
Carolina
1.3%
City
of
Columbia
,
Waterworks
&
Sewer
System,
Revenue,
2019
A,
4%,
2/01/44
.................
5,250,000
6,171,165
Waterworks
&
Sewer
System,
Revenue,
2019
A,
5%,
2/01/49
.................
8,000,000
10,238,640
City
of
Rock
Hill
,
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/41
......................
7,690,000
8,959,004
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/47
......................
5,000,000
5,778,350
County
of
Greenwood
,
Self
Regional
Healthcare
Auxiliary,
Revenue,
2017,
Refunding,
4%,
10/01/37
.....
8,465,000
9,686,923
Self
Regional
Healthcare
Auxiliary,
Revenue,
2017,
Refunding,
4%,
10/01/39
.....
1,195,000
1,361,272
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
South
Carolina
(continued)
Piedmont
Municipal
Power
Agency
,
Revenue
,
1991
,
Refunding
,
NATL
Insured
,
6.25
%
,
1/01/21
.........................................................
$
200,000
$
204,852
South
Carolina
Jobs-Economic
Development
Authority
,
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/43
......
20,000,000
23,376,200
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/48
......
15,000,000
17,409,300
South
Carolina
Ports
Authority
,
Revenue,
2019
B,
5%,
7/01/44
........................................
10,000,000
12,252,400
Revenue,
2019
B,
5%,
7/01/54
........................................
10,365,000
12,522,371
South
Carolina
Public
Service
Authority
,
Revenue
,
2015A
,
Refunding
,
5
%
,
12/01/55
.
20,000,000
22,783,200
South
Carolina
State
Housing
Finance
&
Development
Authority
,
Revenue
,
2020
A
,
3
%
,
7/01/40
......................................................
2,000,000
2,159,820
Spartanburg
Regional
Health
Services
District
,
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/37
..............
1,415,000
1,672,870
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/39
..............
1,410,000
1,656,750
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/45
..............
2,750,000
3,179,137
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
3%,
4/15/49
..............
2,000,000
2,077,640
141,489,894
South
Dakota
1.1%
Huron
School
District
No.
2-2
,
GO
,
2013
,
Refunding
,
5
%
,
6/15/39
...............
4,000,000
4,608,360
South
Dakota
Health
&
Educational
Facilities
Authority
,
Revenue,
2011A,
5.125%,
8/01/46
.....................................
7,000,000
7,301,280
Revenue,
2012A,
Refunding,
5%,
8/01/46
...............................
6,005,000
6,488,282
Revenue,
2015A,
Refunding,
5%,
8/01/38
...............................
3,475,000
4,155,092
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.........
10,000,000
11,123,100
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/46
.........
51,050,000
60,103,718
Regional
Health
System
Obligated
Group,
Revenue,
2017,
4%,
9/01/37
.........
10,920,000
12,481,669
Regional
Health
System
Obligated
Group,
Revenue,
2017,
5%,
9/01/40
.........
10,000,000
11,976,000
South
Dakota
State
Building
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
6/01/42
...
5,450,000
6,689,385
124,926,886
Tennessee
1.9%
City
of
Jackson
,
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
4
%
,
4/01/41
.............................................
25,000,000
26,826,000
Johnson
City
Health
&
Educational
Facilities
Board
,
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
1998,
Pre-Refunded,
NATL
Insured,
5.125%,
7/01/25
......................................
65,000
66,063
Mountain
States
Health
Alliance
Obligated
Group,
Revenue,
1998,
NATL
Insured,
ETM,
5.25%,
7/01/28
.............................................
8,500,000
9,205,330
Knox
County
Health
Educational
&
Housing
Facility
Board
,
Covenant
Health
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/42
.........................
35,000,000
40,778,150
Memphis-Shelby
County
Airport
Authority
,
Revenue,
2018,
5%,
7/01/43
.........................................
10,000,000
11,946,200
Revenue,
2018,
5%,
7/01/47
.........................................
11,000,000
13,058,980
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Water
&
Sewer,
Revenue,
2017
A,
5%,
7/01/46
...........................
6,000,000
7,330,560
Water
&
Sewer,
Revenue,
2017
B,
5%,
7/01/42
...........................
21,645,000
26,620,536
Water
&
Sewer,
Revenue,
2017
B,
5%,
7/01/46
...........................
15,925,000
19,456,528
Metropolitan
Nashville
Airport
Authority
(The)
,
Revenue
,
2019
B
,
5
%
,
7/01/44
......
20,000,000
24,957,800
Tennessee
Housing
Development
Agency
,
Revenue
,
2018-4
,
Refunding
,
4
%
,
7/01/43
6,975,000
7,791,075
Tennessee
State
School
Bond
Authority
,
Revenue
,
2017A
,
5
%
,
11/01/47
..........
15,000,000
18,540,900
206,578,122
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
11.1%
Austin
Community
College
District
Public
Facility
Corp.
,
Revenue
,
2012
,
5
%
,
8/01/36
$
5,700,000
$
6,188,319
Central
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien,
2011,
Pre-Refunded,
6%,
1/01/41
....................
14,000,000
14,336,000
Revenue,
Senior
Lien,
2015A,
Refunding,
5%,
1/01/45
......................
5,000,000
5,656,400
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
1/01/40
.......................
12,505,000
14,350,363
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
1/01/46
.......................
11,245,000
12,787,589
Central
Texas
Turnpike
System
,
Revenue,
2015-B,
Refunding,
5%,
8/15/37
...............................
10,000,000
11,383,700
Revenue,
2015-C,
Refunding,
5%,
8/15/37
...............................
5,000,000
5,516,050
Revenue,
2015-C,
Refunding,
5%,
8/15/42
...............................
20,000,000
21,897,800
Revenue,
First
Tier,
Pre-Refunded,
AGMC
Insured,
5%,
8/15/41
...............
25,665,000
28,166,930
City
of
Arlington
,
Special
Tax,
Senior
Lien
,
2018
A
,
AGMC
Insured
,
4
%
,
2/15/44
.....
20,000,000
22,022,400
City
of
Austin
,
Electric
Utility,
Revenue,
2015A,
Refunding,
5%,
11/15/45
...................
10,000,000
11,844,700
Water
&
Wastewater
System,
Revenue,
2013
A,
Refunding,
5%,
11/15/38
.......
20,000,000
22,205,000
b
City
of
Brownsville
,
Utilities
System,
Revenue,
2020,
Refunding,
4%,
9/01/45
....................
2,000,000
2,382,860
Utilities
System,
Revenue,
2020,
Refunding,
3%,
9/01/50
....................
3,000,000
3,220,470
City
of
Corpus
Christi
,
Utility
System,
Revenue,
Junior
Lien,
2013,
Pre-Refunded,
5%,
7/15/38
.........
6,000,000
6,843,960
Utility
System,
Revenue,
Junior
Lien,
2013,
Pre-Refunded,
5%,
7/15/43
.........
7,000,000
7,984,620
Utility
System,
Revenue,
Junior
Lien,
2015A,
5%,
7/15/40
...................
13,200,000
15,742,320
City
of
Dallas
,
Revenue,
2009,
Refunding,
AGMC
Insured,
5.25%,
8/15/34
..................
18,975,000
19,042,361
Waterworks
&
Sewer
System,
Revenue,
2010,
Pre-Refunded,
5%,
10/01/35
......
10,000,000
10,076,978
Waterworks
&
Sewer
System,
Revenue,
2020
C,
Refunding,
4%,
10/01/49
.......
7,000,000
8,530,060
City
of
Houston
,
Combined
Utility
System,
Revenue,
First
Lien,
2002
C,
Refunding,
4%,
11/15/43
..
7,500,000
9,185,625
Combined
Utility
System,
Revenue,
First
Lien,
2002
C,
Refunding,
5%,
11/15/45
..
5,000,000
6,657,850
Combined
Utility
System,
Revenue,
First
Lien,
2002
C,
Refunding,
4%,
11/15/49
..
5,000,000
6,051,700
Combined
Utility
System,
Revenue,
First
Lien,
2011D,
Pre-Refunded,
5%,
11/15/36
10,000,000
10,622,900
City
of
Laredo
,
Waterworks
&
Sewer
System,
Revenue,
2011,
Pre-Refunded,
AGMC
Insured,
5%,
3/01/41
........................................................
2,500,000
2,569,650
Waterworks
&
Sewer
System,
Revenue,
2016,
Refunding,
4%,
3/01/41
.........
9,690,000
10,805,125
City
of
San
Antonio
,
Electric
&
Gas
Systems
,
Revenue,
Junior
Lien
,
2013
,
5
%
,
2/01/38
10,000,000
10,987,600
City
of
San
Marcos
,
Electric
Utility
System
,
Revenue
,
2013
,
BAM
Insured
,
5
%
,
11/01/33
6,300,000
6,916,896
Dallas
Area
Rapid
Transit
,
Revenue,
Senior
Lien,
2016A,
Refunding,
5%,
12/01/46
.....................
10,000,000
11,700,000
Revenue,
Senior
Lien,
2016A,
Refunding,
5%,
12/01/48
.....................
12,200,000
14,253,626
Dallas/Fort
Worth
International
Airport
,
Revenue,
2010A,
Pre-Refunded,
5%,
11/01/42
............................
25,000,000
25,296,500
Revenue,
2013D,
Refunding,
5.25%,
11/01/32
............................
10,000,000
11,295,700
Ector
County
Independent
School
District
,
GO
,
2013
,
PSF
Guaranty
,
5
%
,
8/15/36
...
10,355,000
11,662,836
Forney
Independent
School
District
,
GO
,
2015
,
Refunding
,
PSF
Guaranty
,
5
%
,
8/15/37
15,000,000
18,027,750
Frisco
Independent
School
District
,
GO
,
2016
,
PSF
Guaranty
,
5
%
,
8/15/46
........
20,000,000
24,201,000
Goose
Creek
Consolidated
Independent
School
District
,
GO
,
2013
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
2/15/38
..............................................
6,045,000
6,785,210
Grand
Parkway
Transportation
Corp.
,
Revenue,
2013
B,
Zero
Cpn
.,
10/01/45
..................................
10,000,000
11,512,800
Revenue,
2018
A,
5%,
10/01/48
.......................................
7,720,000
9,558,363
Revenue,
First
Tier,
2020
C,
Refunding,
4%,
10/01/45
......................
15,455,000
18,359,922
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Houston
Methodist
Hospital
Obligated
Group,
Revenue,
2015,
5%,
12/01/45
.....
30,000,000
34,904,100
Memorial
Hermann
Health
System
Obligated
Group,
Revenue,
2016
A,
5%,
7/01/45
15,000,000
17,351,400
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Harris
County
Toll
Road
Authority
(The)
,
Revenue,
Senior
Lien
,
2018
A
,
Refunding
,
5
%
,
8/15/43
.........................................................
$
6,000,000
$
7,456,980
Harris
County-Houston
Sports
Authority
,
Revenue,
Third
Lien
,
2004A-3
,
NATL
Insured
,
Zero
Cpn
.,
11/15/37
................................................
6,300,000
2,562,588
Hidalgo
County
Regional
Mobility
Authority
,
Revenue,
Senior
Lien,
2013,
Refunding,
5.25%,
12/01/38
....................
5,000,000
5,596,900
Revenue,
Senior
Lien,
2013,
Refunding,
5%,
12/01/43
......................
5,000,000
5,527,750
Lamar
Consolidated
Independent
School
District
,
GO
,
2018
,
PSF
Guaranty
,
5
%
,
2/15/43
.........................................................
30,000,000
36,729,900
Lower
Colorado
River
Authority
,
LCRA
Transmission
Services
Corp.,
Revenue,
2013
A,
Refunding,
5%,
5/15/36
...
10,000,000
11,102,500
LCRA
Transmission
Services
Corp.,
Revenue,
2018,
Refunding,
5%,
5/15/43
.....
10,000,000
12,419,100
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
CHF-Collegiate
Housing
Corpus
Christi
II
LLC,
Revenue,
A,
5%,
4/01/48
........
7,825,000
7,250,802
CHF-Collegiate
Housing
Island
Campus
LLC,
Revenue,
2017A,
5%,
4/01/37
.....
2,500,000
2,504,050
NCCD-Cain
Hall
Redevelopment
I
LLC,
Revenue,
2016A-1,
5%,
4/01/46
........
6,000,000
7,034,520
NCCD-College
Station
Properties
LLC,
Revenue,
A,
5%,
7/01/47
..............
10,000,000
8,300,000
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/39
.......................................................
5,650,000
6,058,551
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/49
.......................................................
11,470,000
12,089,839
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/54
.......................................................
230,000
241,525
North
East
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien
,
2016A
,
5
%
,
1/01/41
.........................................................
16,750,000
18,222,660
North
Harris
County
Regional
Water
Authority
,
Revenue,
Senior
Lien,
2016,
Refunding,
4%,
12/15/41
......................
20,000,000
22,559,800
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
12/15/46
......................
18,460,000
22,659,096
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
2015A,
Refunding,
5%,
1/01/35
.........
10,000,000
11,527,000
North
Texas
Tollway
System,
Revenue,
2015A,
Refunding,
5%,
1/01/38
.........
10,000,000
11,462,400
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017A,
Refunding,
5%,
1/01/43
..
47,000,000
57,021,810
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017A,
Refunding,
5%,
1/01/48
..
33,500,000
40,326,630
North
Texas
Tollway
System,
Revenue,
First
Tier,
I,
Refunding,
6.5%,
1/01/43
.....
25,000,000
30,319,000
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2017B,
Refunding,
5%,
1/01/48
10,000,000
11,832,900
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2018,
Refunding,
5%,
1/01/48
25,250,000
30,299,495
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn
.,
9/01/37
....
7,500,000
4,239,075
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn
.,
9/01/43
....
7,500,000
2,701,800
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
0%,
9/01/45
.........
25,000,000
37,755,250
Port
Freeport
,
Revenue,
Senior
Lien
,
2019
A
,
5
%
,
6/01/49
.....................
4,000,000
4,912,480
San
Antonio
Public
Facilities
Corp.
,
Revenue
,
2012
,
Refunding
,
4
%
,
9/15/42
.......
36,500,000
38,061,470
San
Antonio
Water
System
,
Revenue,
Junior
Lien,
2018A,
Refunding,
5%,
5/15/43
......................
12,000,000
15,284,280
Revenue,
Junior
Lien,
2018A,
Refunding,
5%,
5/15/48
......................
10,000,000
12,680,400
San
Jacinto
River
Authority
,
Revenue,
2011,
AGMC
Insured,
5%,
10/01/32
............................
5,000,000
5,016,450
Revenue,
2011,
AGMC
Insured,
5%,
10/01/37
............................
3,000,000
3,010,320
Southwest
Higher
Education
Authority,
Inc.
,
Southern
Methodist
University
,
Revenue
,
2013A
,
5
%
,
10/01/38
...............................................
24,380,000
27,201,254
State
of
Texas
,
GO
,
2014-A
,
Pre-Refunded
,
5
%
,
10/01/39
.....................
30,000,000
35,973,900
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
B,
5%,
7/01/43
...........
10,000,000
12,237,600
Cook
Children's
Medical
Center
Obligated
Group,
Revenue,
2013
A,
5.25%,
12/01/39
10,000,000
11,168,100
Hendrick
Medical
Center
Obligated
Group,
Revenue,
2013,
5.5%,
9/01/43
.......
5,350,000
5,915,763
Texas
Health
Resources
Obligated
Group,
Revenue,
2015A,
5%,
11/15/52
.......
5,000,000
5,691,400
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Tarrant
County
Health
Facilities
Development
Corp.
,
Texas
Health
Resources
Obligated
Group,
Revenue,
1994,
FGIC
Insured,
ETM,
6%,
9/01/24
........................................................
$
4,205,000
$
4,725,201
Texas
City
Industrial
Development
Corp.
,
BP
Pipelines
North
America,
Inc.
,
Revenue
,
1990
,
Refunding
,
7.375
%
,
10/01/20
....................................
500,000
504,635
Texas
Department
of
Housing
&
Community
Affairs
,
Revenue
,
2020
A
,
GNMA
Insured
,
3
%
,
9/01/45
......................................................
3,225,000
3,417,081
Texas
Municipal
Power
Agency
,
Revenue,
Sub.
Lien
,
2010
,
Refunding
,
5
%
,
9/01/40
.
15,250,000
15,296,970
Texas
Transportation
Commission
,
Revenue,
First
Tier,
2019A,
Zero
Cpn
.,
8/01/48
...........................
6,250,000
1,754,250
Revenue,
First
Tier,
2019A,
Zero
Cpn
.,
8/01/49
...........................
5,000,000
1,330,800
Revenue,
First
Tier,
2019A,
Zero
Cpn
.,
8/01/50
...........................
5,500,000
1,382,260
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
4%,
10/15/43
.......................................................
25,000,000
30,049,500
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
5%,
4/15/49
15,000,000
19,200,750
West
Travis
County
Public
Utility
Agency
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
......................................................
5,000,000
5,723,250
1,215,225,468
Utah
1.6%
Central
Utah
Water
Conservancy
District
,
Revenue,
2017
B,
Refunding,
4%,
10/01/37
..............................
2,600,000
3,084,510
Revenue,
2017
B,
Refunding,
4%,
10/01/38
..............................
10,000,000
11,835,300
County
of
Utah
,
IHC
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
5/15/43
.......
2,750,000
3,257,485
IHC
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/43
.......
4,000,000
5,196,800
IHC
Health
Services,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
5/15/50
.......
9,000,000
11,609,100
Jordan
Valley
Water
Conservancy
District
,
Revenue,
2011B,
Pre-Refunded,
5%,
10/01/41
............................
15,000,000
15,483,600
Revenue,
2017
B,
Refunding,
4%,
10/01/41
..............................
6,000,000
6,867,960
Salt
Lake
City
Corp.
,
Airport,
Revenue,
2017A,
5%,
7/01/42
..................................
15,000,000
17,829,900
Airport,
Revenue,
2017A,
5%,
7/01/47
..................................
10,000,000
11,800,500
Airport,
Revenue,
2018A,
5%,
7/01/48
..................................
9,400,000
11,271,070
Airport,
Revenue,
2018A,
5.25%,
7/01/48
................................
10,000,000
12,170,800
University
of
Utah
(The)
,
Revenue,
2013
A,
Pre-Refunded,
5%,
8/01/43
............................
21,975,000
25,140,938
Revenue,
2018A,
5%,
8/01/44
........................................
12,240,000
15,460,711
Utah
Municipal
Power
Agency
,
Revenue
,
2016
B
,
5
%
,
7/01/38
..................
10,000,000
12,099,100
Weber
Basin
Water
Conservancy
District
,
Revenue
,
2013B
,
5
%
,
4/01/39
..........
7,180,000
7,975,616
171,083,390
Vermont
0.4%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
President
&
Fellows
of
Middlebury
College,
Revenue,
2010,
Refunding,
5%,
11/01/40
26,565,000
26,876,873
b
President
&
Fellows
of
Middlebury
College,
Revenue,
2020,
Refunding,
5%,
11/01/49
4,000,000
5,079,280
b
President
&
Fellows
of
Middlebury
College,
Revenue,
2020,
Refunding,
4%,
11/01/50
5,000,000
5,837,350
University
of
Vermont
Health
Network
Obligated
Group,
Revenue,
2016A,
Refunding,
5%,
12/01/36
...................................................
5,000,000
5,894,650
43,688,153
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Virginia
1.0%
Chesterfield
County
Economic
Development
Authority
,
Bon
Secours
Health
System,
Inc.
Obligated
Group
,
Revenue
,
2008
C-2
,
Pre-Refunded
,
AGMC
Insured
,
5
%
,
11/01/42
........................................................
$
8,000,000
$
8,089,920
Hampton
Roads
Sanitation
District
,
Revenue
,
2018
A
,
Pre-Refunded
,
5
%
,
10/01/47
..
14,575,000
19,386,207
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
7/01/42
................................................
25,000,000
31,399,750
Virginia
Commonwealth
Transportation
Board
,
Revenue
,
2019
,
4
%
,
5/15/41
.......
13,585,000
16,306,483
Virginia
Housing
Development
Authority
,
Revenue
,
2019
E
,
3.1
%
,
12/01/45
........
6,760,000
7,312,968
Virginia
Resources
Authority
,
Revenue
,
2012
A
,
5
%
,
11/01/39
..................
70,000
76,773
Virginia
Small
Business
Financing
Authority
,
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2012,
5%,
1/01/40
.............
14,535,000
15,071,051
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2019,
5%,
1/01/44
.............
7,500,000
7,761,825
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2019,
5%,
7/01/49
.............
3,000,000
3,102,210
108,507,187
Washington
2.8%
City
of
Seattle
,
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/36
............
22,170,000
26,163,260
Municipal
Light
&
Power,
Revenue,
2018
A,
4%,
1/01/42
.....................
10,855,000
12,691,666
County
of
King
,
Sewer,
Revenue,
2017,
Refunding,
5%,
7/01/49
...........................
12,000,000
14,755,320
b
Sewer,
Revenue,
2020
A,
Refunding,
4%,
1/01/47
.........................
5,000,000
5,970,650
King
County
Housing
Authority
,
Revenue,
2019,
Refunding,
3%,
11/01/39
................................
10,000,000
10,792,900
Revenue,
2020,
Refunding,
3%,
6/01/40
.................................
5,000,000
5,364,100
Klickitat
County
Public
Utility
District
No.
1
,
Revenue
,
2019
A
,
Refunding
,
AGMC
Insured
,
3
%
,
12/01/41
..............................................
3,030,000
3,260,068
NJB
Properties
,
Revenue
,
2006A
,
5
%
,
12/01/36
............................
5,000
5,018
North
Thurston
Public
Schools
,
GO,
2020,
4%,
12/01/34
.............................................
5,000,000
6,303,950
GO,
2020,
4%,
12/01/35
.............................................
5,000,000
6,275,150
GO,
2020,
4%,
12/01/36
.............................................
6,000,000
7,499,160
Port
of
Seattle
,
Revenue,
2018A,
5%,
5/01/43
........................................
15,500,000
18,141,510
Revenue,
2019,
4%,
4/01/44
.........................................
4,000,000
4,369,240
State
of
Washington
,
GO,
2019
D,
5%,
6/01/43
............................................
11,040,000
14,190,374
GO,
2019
D,
5%,
6/01/44
............................................
11,595,000
14,865,950
GO,
Senior
Lien,
2012C,
Refunding,
5%,
6/01/33
..........................
5,000,000
5,190,900
University
of
Washington
,
Revenue
,
2018
,
5
%
,
4/01/48
.......................
29,450,000
35,881,586
Washington
Health
Care
Facilities
Authority
,
Revenue,
2014D,
Pre-Refunded,
5%,
10/01/41
...........................
150,000
178,153
Revenue,
2014D,
5%,
10/01/41
.......................................
9,850,000
11,109,717
Fred
Hutchinson
Cancer
Research
Center,
Revenue,
2017
A,
5%,
1/01/47
.......
10,000,000
11,585,400
Multicare
Health
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
4%,
8/15/41
25,000,000
27,812,750
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2012A,
5%,
10/01/42
...
10,175,000
10,815,618
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/45
........................................................
2,610,000
3,001,160
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/45
........................................................
2,105,000
2,653,879
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/50
........................................................
5,000,000
5,744,300
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/50
........................................................
3,000,000
3,754,290
Seattle
Children's
Hospital
Obligated
Group,
Revenue,
2015B,
Refunding,
5%,
10/01/38
.......................................................
15,000,000
17,290,650
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
(continued)
Washington
Higher
Education
Facilities
Authority
,
Seattle
Pacific
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/42
......................................
$
3,800,000
$
4,583,978
Washington
State
Convention
Center
Public
Facilities
District
,
Revenue
,
2018
,
5
%
,
7/01/43
.........................................................
13,870,000
15,638,286
305,888,983
West
Virginia
0.9%
Berkeley
County
Public
Service
Sewer
District
,
Revenue
,
2016B
,
Refunding
,
BAM
Insured
,
5
%
,
6/01/36
...............................................
1,000,000
1,208,270
West
Virginia
Hospital
Finance
Authority
,
Cabell
Huntington
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
........................................................
13,250,000
15,858,130
Charleston
Area
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2019A,
Refunding,
5%,
9/01/38
....................................................
3,040,000
3,566,528
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/42
7,000,000
8,185,450
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/47
10,190,000
11,711,876
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/52
20,700,000
24,258,951
West
Virginia
University
,
Revenue
,
2014A
,
Pre-Refunded
,
5
%
,
10/01/44
..........
21,800,000
25,941,128
West
Virginia
Water
Development
Authority
,
Revenue,
2016
A,
Refunding,
5%,
10/01/36
..............................
5,000,000
6,147,700
Revenue,
2016
A,
Refunding,
5%,
10/01/45
..............................
5,435,000
6,560,317
103,438,350
Wisconsin
0.8%
Ashwaubenon
Community
Development
Authority
,
County
of
Brown,
Revenue,
2019,
Zero
Cpn
.,
6/01/49
.......................
16,185,000
5,647,756
County
of
Brown,
Revenue,
2019,
Zero
Cpn
.,
6/01/54
.......................
53,000,000
14,670,400
City
of
Superior
,
DTE
Electric
Co.
,
Revenue
,
E-1991
,
Refunding
,
NATL
Insured
,
6.9
%
,
8/01/21
.........................................................
3,000,000
3,191,880
Public
Finance
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020A,
5%,
11/15/41
.......................................................
1,205,000
1,426,491
Blue
Ridge
Healthcare
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/01/50
2,185,000
2,205,342
Wisconsin
Health
&
Educational
Facilities
Authority
,
Ascension
Health
Credit
Group,
Revenue,
2013
B-2,
4%,
11/15/43
.............
10,000,000
11,595,100
Children's
Hospital
of
Wisconsin
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
15,000,000
16,937,550
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2017
C,
Refunding,
5%,
2/15/47
........................................................
20,000,000
23,107,200
Thedacare
,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
12/15/37
......
5,135,000
5,971,645
Wisconsin
Housing
&
Economic
Development
Authority
,
Revenue
,
2020
A
,
Refunding
,
3
%
,
3/01/39
......................................................
1,625,000
1,756,349
86,509,713
Wyoming
0.1%
Wyoming
Community
Development
Authority
,
Revenue
,
2018
1
,
Refunding
,
3.65
%
,
12/01/33
........................................................
3,280,000
3,670,156
Wyoming
Municipal
Power
Agency,
Inc.
,
Revenue
,
2017
A
,
Refunding
,
BAM
Insured
,
5
%
,
1/01/42
......................................................
7,000,000
8,433,880
12,104,036
U.S.
Territories
3.9%
District
of
Columbia
3.7%
District
of
Columbia
,
GO,
2019
A,
5%,
10/15/44
...........................................
25,000,000
32,392,250
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/26
.....................
9,950,000
9,972,984
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/24
.....................
12,120,000
12,148,967
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
Quarterly
Statement
of
Investments
See
Notes
to
Statements
of
Investments.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
District
of
Columbia
(continued)
District
of
Columbia,
(continued)
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/25
.....................
$
7,000,000
$
7,016,450
Association
of
American
Medical
Colleges,
Revenue,
2011
B,
Pre-Refunded,
5.25%,
10/01/41
.......................................................
15,000,000
15,870,450
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/42
..........
20,660,000
23,830,277
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/47
..........
24,985,000
28,612,572
Catholic
University
of
America
(The),
Revenue,
2018,
Refunding,
5%,
10/01/43
...
4,000,000
4,681,200
Children's
Hospital
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/15/40
....
6,830,000
7,887,489
Georgetown
University
(The),
Revenue,
2007
A,
Pre-Refunded,
AMBAC
Insured,
5%,
4/01/32
........................................................
15,370,000
15,860,303
Income
Tax,
Revenue,
2019A,
4%,
3/01/44
..............................
10,000,000
11,983,300
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/49
............
2,275,000
2,541,584
Tobacco
Settlement
Financing
Corp.,
Revenue,
2001,
6.5%,
5/15/33
...........
16,630,000
18,795,060
Water
&
Sewer
Authority,
Revenue,
Senior
Lien,
2018
A,
5%,
10/01/49
..........
25,000,000
31,527,500
Water
&
Sewer
Authority,
Revenue,
Sub.
Lien,
2019
A,
5%,
10/01/44
...........
7,350,000
9,647,022
Metropolitan
Washington
Airports
Authority
,
Revenue,
2010-A,
5%,
10/01/39
.......................................
5,000,000
5,038,450
Revenue,
2010-A,
5%,
10/01/35
.......................................
5,000,000
5,038,450
Revenue,
2019A,
Refunding,
5%,
10/01/44
..............................
17,500,000
21,725,725
Revenue,
2019A,
Refunding,
5%,
10/01/49
..............................
15,000,000
18,503,400
Dulles
Toll
Road,
Revenue,
Second
Lien,
2009C,
AGMC
Insured,
6.5%,
10/01/41
..
25,000,000
31,635,000
Dulles
Toll
Road,
Revenue,
Sub.
Lien,
2019
B,
Refunding,
4%,
10/01/49
........
13,555,000
14,972,040
Washington
Convention
&
Sports
Authority
,
Tax
Allocation,
Senior
Lien
,
2010-A
,
5
%
,
10/01/40
........................................................
16,415,000
16,447,666
Washington
Metropolitan
Area
Transit
Authority
,
Revenue,
2020A,
4%,
7/15/45
........................................
10,000,000
11,944,800
Revenue,
2020A,
5%,
7/15/45
........................................
40,000,000
52,330,400
410,403,339
Puerto
Rico
0.2%
c
Puerto
Rico
Electric
Power
Authority
,
Revenue,
2012A-RSA-1
2012A,
5%,
7/01/42
.............................
18,925,000
13,010,937
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
15,000,000
10,350,000
23,360,937
Total
U.S.
Territories
....................................................................
433,764,276
Total
Municipal
Bonds
(Cost
$9,940,479,816)
...................................
10,932,248,567
a
a
a
a
Short
Term
Investments
0.3%
Municipal
Bonds
0.3%
California
0.0%
†
d
Regents
of
the
University
of
California
,
Medical
Center
,
Revenue
,
2007
B-1
,
Refunding
,
Daily
VRDN
and
Put
,
0.1
%
,
5/15/32
....................................
3,600,000
3,600,000
Minnesota
0.0%
†
d
City
of
Minneapolis
St.
Paul
Housing
&
Redevelopment
Authority
,
Allina
Health
Obligated
Group
,
Revenue
,
B-2
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.17
%
,
11/15/35
...............................................
5,000,000
5,000,000
New
Mexico
0.1%
d
New
Mexico
Hospital
Equipment
Loan
Council
,
Presbyterian
Healthcare
Services
Obligated
Group
,
Revenue
,
2008C
,
SPA
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
0.17
%
,
8/01/34
...................................................
5,500,000
5,500,000
Franklin
Federal
Tax
Free
Income
Fund
Statement
of
Investments
(unaudited)
See
Notes
to
Statements
of
Investments.
Quarterly
Statement
of
Investments
27
See
Abbreviations
on
page
29.
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Carolina
0.0%
†
d
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group
,
Revenue
,
2007
E
,
AGMC
Insured
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.14
%
,
1/15/44
.........................................................
$
5,000,000
$
5,000,000
Tennessee
0.2%
d
Public
Building
Authority
of
Sevier
County
(The)
,
County
of
Knox
,
Revenue
,
V1-K-1
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.15
%
,
6/01/34
.....................
7,700,000
7,700,000
d
Shelby
County
Health
Educational
&
Housing
Facilities
Board
,
Methodist
Le
Bonheur
Healthcare
Obligated
Group
,
Revenue
,
2008A
,
AGMC
Insured
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.16
%
,
6/01/42
...................................
11,100,000
11,100,000
18,800,000
Total
Municipal
Bonds
(Cost
$37,900,000)
......................................
37,900,000
Total
Short
Term
Investments
(Cost
$37,900,000
)
................................
37,900,000
a
Total
Investments
(Cost
$9,978,379,816)
99.8%
..................................
$10,970,148,567
Other
Assets,
less
Liabilities
0.2%
.............................................
12,174,593
Net
Assets
100.0%
...........................................................
$10,982,323,160
†
Rounds
to
less
than
0.1%
of
net
assets.
a
The
maturity
date
shown
represents
the
mandatory
put
date.
b
Security
purchased
on
a
when-issued
basis.
c
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
d
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.
Franklin
Federal
Tax
Free
Income
Fund
Notes
to
Statement
of
Investments
(unaudited)
28
1.
Organization
Franklin
Federal
Tax-Free
Income
Fund (Fund)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
2. Financial
Instrument
Valuation
The
Fund's investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Fund’s
Board
of
Trustees
(the
Board),
the
Fund’s
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Debt
securities
generally
trade
in
the
over-the-counter
market
rather
than
on
a
securities
exchange.
The Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Fund
has procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Fund
primarily employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
3.
Concentration
of
Risk
Investing
in
Puerto
Rico
securities
may
expose
the
Fund
to
heightened
risks
due
to
recent
adverse
economic
and
market
changes,
credit
downgrades
and
ongoing
restructuring
discussions.
Investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the
Fund
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
4. Novel
Coronavirus
Pandemic
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
Franklin
Federal
Tax
Free
Income
Fund
Notes
to
Statement
of
Investments
(unaudited)
29
5. Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the
Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's
financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
•
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
•
Level 2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
•
Level 3
–
significant
unobservable
inputs
(including
the
Fund's own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
At July
31,
2020,
all
of
the
Fund's investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level
2
inputs.
6.
Subsequent
Events
The Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
Statement
of
Investments
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Selected
Portfolio
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
BHAC
Berkshire
Hathaway
Assurance
Corp.
COP
Certificate
of
Participation
ETM
Escrow
to
Maturity
FGIC
Financial
Guaranty
Insurance
Co.
FHA
Federal
Housing
Administration
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
PSF
Permanent
School
Fund
SPA
Standby
Purchase
Agreement
For
additional
information
on
the
Fund's
significant
accounting
policies,
please
refer
to
the Fund's
most
recent
semiannual
or
annual
shareholder
report.