UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-03395
Franklin Federal Tax-Free Income Fund
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices)(Zip code)
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
Date of fiscal year end: 4/30
Date of reporting period: 4/30/24
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Federal
Tax-Free
Income
Fund
April
30,
2024
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund’s
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
a
broker-dealer
or
bank)
or,
if
you
are
a
direct
investor,
enrolling
at
franklintempleton.com.
You
may
access
franklintempleton.com
by
scanning
the
code
below.
Franklin
Federal
Tax-Free
Income
Fund
1
franklintempleton.com
Annual
Report
SHAREHOLDER
LETTER
Dear
Shareholder,
We
are
pleased
to
provide
the
annual
report
of
Franklin
Federal
Tax-Free
Income
Fund
for
the
12-month
reporting
period
ended
April
30,
2024.
Please
read
on
for
a
detailed
look
at
prevailing
economic
and
market
conditions
during
the
Funds’
reporting
period
and
to
learn
how
those
conditions
have
affected
Fund
performance.
As
always,
we
remain
committed
to
providing
you
with
excellent
service
and
a
full
spectrum
of
investment
choices.
We
also
remain
committed
to
supplementing
the
support
you
receive
from
your
financial
advisor.
One
way
we
accomplish
this
is
through
our
website,
www.franklintempleton.com
.
Here
you
can
gain
immediate
access
to
market
and
investment
information,
including:
•
Fund
prices
and
performance;
•
Market
insights
and
commentaries
from
our
portfolio
Managers;
and
•
A
host
of
educational
resources.
We
look
forward
to
helping
you
meet
your
financial
goals.
Sincerely,
Gregory
E.
Johnson
Chairman
Franklin
Federal
Tax-Free
Income
Fund
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
franklintempleton.com
Annual
Report
2
Contents
Fund
Overview
3
Performance
Summary
5
Your
Fund’s
Expenses
8
Financial
Highlights
and
Schedule
of
Investments
9
Financial
Statements
47
Notes
to
Financial
Statements
51
Report
of
Independent
Registered
Public
Accounting
Firm
60
Tax
Information
61
Board
Members
and
Officers
62
Shareholder
Information
67
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
Franklin
Federal
Tax-Free
Income
Fund
Fund
Overview
Q.
What
is
the
Fund's
investment
strategy?
A.
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
investment
grade
municipal
securities
that
pay
interest
free
from
such
taxes.
1
We
select
securities
that
we
believe
provide
the
best
balance
between
risk
and
return
within
the
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-hold
strategy.
This
means
we
generally
hold
securities
in
the
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
the
Fund
meet
its
goal.
Q.
What
were
the
overall
market
conditions
during
the
Fund’s
reporting
period?
A.
The
12
months
ending
April
30,
2024,
saw
the
U.S.
Federal
Reserve
(Fed)
turn
more
cautious
in
its
monetary
policy
tightening
campaign,
in
an
effort
to
get
inflation
under
control
without
tipping
the
economy
into
recession.
The
Fed
delivered
three
25-basis
point
hikes
during
the
period,
the
last
of
which
occurred
in
July
2023
and
took
the
Fed
funds
target
rate
to
a
range
of
5.25%–5.50%,
a
more
than
20-year
high.
Since
then,
policymakers
have
maintained
a
restrictive
stance.
However,
progress
on
disinflation
stalled
in
early
2024,
as
the
annual
headline
Consumer
Price
Index
(CPI)
only
moved
from
5.0%
for
March
2023
to
3.5%
in
March
2024.
In
fact,
inflation
seemed
to
be
reaccelerating
toward
the
end
of
the
period.
At
its
most
recent
meeting
(on
May
1,
just
after
period-end),
the
Fed
again
left
rates
unchanged,
and
maintained
that
further
hikes
were
now
“unlikely.”
In
his
accompanying
statements,
Fed
Chair
Jerome
Powell
noted
that
the
central
bank
would
leave
monetary
policy
restrictive
for
as
long
as
necessary
to
see
a
sustained
return
of
inflation
back
to
its
2%
target.
Meanwhile,
the
U.S.
economy
remained
resilient.
While
real
gross
domestic
product
growth
slowed
somewhat
in
the
first
quarter
of
2024,
it
still
expanded
at
a
healthy
annualized
rate
of
1.6%.
Private
consumption
slowed
overall,
but
spending
on
services
continued
to
accelerate.
The
municipal
(muni)
bond
market
recorded
positive
total
returns
over
the
period
under
review,
helped
by
a
late-
year
rally
in
2023
which
was
fueled
by
increased
investor
optimism
that
monetary
policy
tightening
had
come
to
an
end.
For
most
of
the
last
12
months,
high
levels
of
uncertainty
kept
fund
flows
into
muni
bond
retail
vehicles
negative,
though
they
did
turn
positive
so
far
in
2024.
Moreover,
anecdotal
feedback
suggested
that
many
asset
allocators
were
retaining
large
cash
and
cash-equivalent
balances,
waiting
to
re-allocate
funds
to
the
sector.
Q.
How
did
we
respond
to
these
changing
market
conditions?
A.
Much
of
the
past
12
months
witnessed
high
levels
of
uncertainty.
However,
market
volatility
was
largely
interest-
rate
driven.
Credit
fundamentals
have
remained
stable,
with
robust
balance
sheets
that
were
supported
by
significant
“rainy-day”
funds
which,
in
turn,
were
bolstered
by
federal
COVID-19
aid,
increased
during
the
post-pandemic
recovery,
and
maintained
with
conservative
budgeting
and
fiscal
discipline.
Considering
our
view
of
the
fundamental
strength
in
the
muni
market,
the
Fund
is
consequently
tilted
toward
lower-rated
investment-grade
issuers
and
bonds
with
no
external
credit
rating.
Over
the
period,
we
looked
for
opportunities
that
had
the
potential
to
improve
the
overall
yield
of
the
portfolio
and
used
our
rigorous
bottom-up
research
process
to
help
us
identify
credits
that
represented
good
relative
value,
in
our
view.
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$10.72
on
April
30,
2023
,
to
$10.66
on
April
30,
2024
.
The
Fund’s
Class
A
shares
paid
dividends
totaling
36.5208
cents
per
share
for
the
same
period.
2
The
Performance
Summary
beginning
on
page
5
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
3.28%
,
based
on
an
annualization
of the
April
's
3.0288
cents
per
share dividend
and
the
maximum
offering
price
of
$11.08
on
April
30,
2024
.
An
investor
in
the
2024
maximum federal personal
income
tax
bracket
of
37.00% (including
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
5.54%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
1.
Dividends
are
generally
subject
to
state
and
local
taxes,
if
any.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distribu-
tions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
net
investment
income
distributions
for
the
period
shown.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
14
.
Franklin
Federal
Tax-Free
Income
Fund
4
franklintempleton.com
Annual
Report
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
*Does
not
include
cash
and
cash
equivalents.
Q.
What
were
the
leading
contributors
to
performance?
A.
The
Fund
outperformed
its
benchmark
over
the
12
months
under
review,
with
positive
performance
primarily
driven
by
its
overweight
allocation
to
bonds
with
no
external
credit
rating
as
well
as
to
BBB
rated
issues.
Additionally,
security
selection
in
AA,
A,
and
BBB
rated
bonds
benefited
relative
returns.
While
yield
curve
positioning
overall
was
a
drag
on
results,
an
underweight
to
muni
bonds
with
two
years
to
maturity
assisted
returns.
Q.
What
were
the
leading
detractors
from
performance?
A.
Yield
curve
positioning
was
the
main
detractor
from
relative
performance
over
the
reporting
period,
driven
by
an
overweight
allocation
to
muni
bonds
with
10
or
more
years
to
maturity.
Q.
Were
there
any
significant
changes
to
the
Fund
during
the
reporting
period?
A.
There
were
no
significant
changes
to
the
Fund’s
overall
strategy.
However,
as
we
gained
more
clarity
around
the
Fed’s
monetary
tightening
path
(and
its
end)
and
became
more
comfortable
that
muni
fundamentals
were
generally
robust
in
the
face
of
tighter
financing
conditions
and
slowing
economic
activity,
the
Fund
increased
its
overweight
to
BBB
rated
issuers
as
well
as
added
to
its
holdings
of
bonds
with
no
external
credit
rating.
The
Franklin
Templeton
Fixed
Income
research
team
conducts
an
in-depth
analysis
of
potential
investment
opportunities
and
is
therefore
able
to
find
what
they
deem
to
be
attractively
priced
securities
from
muni
issuers
with
solid
underlying
credit
fundamentals
that
could
weather
a
period
of
below-trend
growth.
Thank
you
for
your
continued
participation
in
Franklin
Federal
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
April
30,
2024,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
4/30/24
%
of
Total
Investments*
Transportation
18.08%
Health
Care
16.18%
Housing
12.13%
Utilities
10.85%
Industrial
Dev.
Revenue
and
Pollution
Control
10.35%
Special
Tax
9.08%
Education
6.48%
Local
6.47%
Lease
5.72%
State
General
Obligation
2.48%
Refunded
1.69%
Other
Revenue
Bonds
0.49%
Performance
Summary
as
of
April
30,
2024
Franklin
Federal
Tax-Free
Income
Fund
5
franklintempleton.com
Annual
Report
The
performance
table
and
graphs
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of 4/30/24
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4,5
1-Year
+2.92%
-0.94%
5-Year
+4.53%
+0.12%
10-Year
+21.91%
+1.61%
Advisor
1-Year
+3.18%
+3.18%
5-Year
+5.84%
+1.14%
10-Year
+24.20%
+2.19%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
3.28%
5.54%
3.64%
6.15%
Advisor
3.65%
6.17%
4.03%
6.81%
See
page
7
for
Performance
Summary
footnotes.
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
6
franklintempleton.com
Annual
Report
See
page
7
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(4/30/14–4/30/24)
Advisor
Class
(4/30/14–4/30/24)
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
7
franklintempleton.com
Annual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
Fixed
income
securities
involve
interest
rate,
credit,
inflation
and
reinvestment
risks,
and
possible
loss
of
principal.
As
interest
rates
rise,
the
value
of
fixed
income
securities
falls.
Changes
in
the
credit
rating
of
a
bond
,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
6.
Distribution
Rate
is
calculated
by
annualizing
the
most
recent
distribution
amount
paid,
divided
by
the
NAV
as
of
the
date
indicated.
The
Distribution
Rate
calculation
includes
income
and
return
of
capital,
and
includes
a
prorated
special
distribution
in
the
month
it
is
paid.
The
Distribution
Rate
is
not
guaranteed,
subject
to
change,
and
is
not
a
quotation
of
fund
performance.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2024
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
8.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
9.
Source:
Morningstar.
The
Bloomberg
Municipal
Bond
Index
is
a
market
value-weighted
index
of
tax-exempt,
investment-grade
municipal
bonds
with
maturities
of
one
year
or
more.
10.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Distributions
(5/1/23–4/30/24)
Share
Class
Net
Investment
Income
A
$0.365208
A1
$0.381094
C
$0.322766
R6
$0.396383
Advisor
$0.391708
Total
Annual
Operating
Expenses
10
Share
Class
A
0.79%
Advisor
0.54%
Your
Fund’s
Expenses
Franklin
Federal
Tax-Free
Income
Fund
8
franklintempleton.com
Annual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
l
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
182/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
11/1/23
Ending
Account
Value
4/30/24
Expenses
Paid
During
Period
11/1/23–4/30/24
1,2
Ending
Account
Value
4/30/24
Expenses
Paid
During
Period
11/1/23–4/30/24
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,094.30
$4.12
$1,020.93
$3.98
0.79%
A1
$1,000
$1,094.00
$3.34
$1,021.68
$3.22
0.64%
C
$1,000
$1,091.20
$6.19
$1,018.94
$5.98
1.19%
R6
$1,000
$1,095.80
$2.61
$1,022.37
$2.52
0.50%
Advisor
$1,000
$1,094.50
$2.81
$1,022.18
$2.71
0.54%
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
a
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.72
$10.97
$12.31
$11.60
$11.82
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.37
0.34
0.31
0.33
0.35
Net
realized
and
unrealized
gains
(losses)
...........
(0.06)
(0.25)
(1.35)
0.71
(0.22)
Total
from
investment
operations
....................
0.31
0.09
(1.04)
1.04
0.13
Less
distributions
from:
Net
investment
income
..........................
(0.37)
(0.34)
(0.30)
(0.33)
(0.35)
Net
asset
value,
end
of
year
.......................
$10.66
$10.72
$10.97
$12.31
$11.60
Total
return
c
...................................
2.92%
0.87%
(8.62)%
9.01%
1.07%
Ratios
to
average
net
assets
Expenses
d
....................................
0.79%
e
0.79%
e
0.77%
e
0.78%
e
0.77%
Net
investment
income
...........................
3.50%
3.21%
2.56%
2.72%
2.96%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,968,264
$1,940,290
$1,916,791
$1,770,979
$1,110,207
Portfolio
turnover
rate
............................
15.32%
28.31%
22.08%
16.18%
20.23%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.72
$10.97
$12.31
$11.60
$11.82
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.39
0.36
0.33
0.35
0.37
Net
realized
and
unrealized
gains
(losses)
...........
(0.07)
(0.26)
(1.35)
0.70
(0.22)
Total
from
investment
operations
....................
0.32
0.10
(1.02)
1.05
0.15
Less
distributions
from:
Net
investment
income
..........................
(0.38)
(0.35)
(0.32)
(0.34)
(0.37)
Net
asset
value,
end
of
year
.......................
$10.66
$10.72
$10.97
$12.31
$11.60
Total
return
c
...................................
3.08%
1.02%
(8.48)%
9.17%
1.22%
Ratios
to
average
net
assets
Expenses
d
....................................
0.64%
e
0.64%
e
0.63%
e
0.63%
e
0.62%
Net
investment
income
...........................
3.65%
3.35%
2.71%
2.89%
3.11%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$4,601,265
$5,215,087
$6,256,503
$6,919,289
$6,833,018
Portfolio
turnover
rate
............................
15.32%
28.31%
22.08%
16.18%
20.23%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
a
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.71
$10.96
$12.30
$11.59
$11.81
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.33
0.30
0.26
0.29
0.31
Net
realized
and
unrealized
gains
(losses)
...........
(0.07)
(0.25)
(1.34)
0.70
(0.22)
Total
from
investment
operations
....................
0.26
0.05
(1.08)
0.99
0.09
Less
distributions
from:
Net
investment
income
..........................
(0.32)
(0.30)
(0.26)
(0.28)
(0.31)
Net
asset
value,
end
of
year
.......................
$10.65
$10.71
$10.96
$12.30
$11.59
Total
return
c
...................................
2.51%
0.47%
(8.99)%
8.58%
0.67%
Ratios
to
average
net
assets
Expenses
d
....................................
1.18%
e
1.19%
e
1.18%
e
1.18%
e
1.17%
Net
investment
income
...........................
3.09%
2.79%
2.15%
2.35%
2.56%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$180,672
$246,760
$340,772
$543,196
$657,344
Portfolio
turnover
rate
............................
15.32%
28.31%
22.08%
16.18%
20.23%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Year
Ended
April
30,
2024
2023
2022
2021
2020
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.73
$10.98
$12.32
$11.61
$11.83
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.40
0.37
0.35
0.37
0.39
Net
realized
and
unrealized
gains
(losses)
...........
(0.06)
(0.25)
(1.35)
0.70
(0.22)
Total
from
investment
operations
....................
0.34
0.12
(1.00)
1.07
0.17
Less
distributions
from:
Net
investment
income
..........................
(0.40)
(0.37)
(0.34)
(0.36)
(0.39)
Net
asset
value,
end
of
year
.......................
$10.67
$10.73
$10.98
$12.32
$11.61
Total
return
....................................
3.22%
1.17%
(8.35)%
9.31%
1.37%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
...............................
0.49%
0.50%
0.48%
0.49%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
c
..............................
0.49%
d
0.49%
0.48%
d
0.49%
d
0.49%
d
Net
investment
income
...........................
3.79%
3.51%
2.88%
3.00%
3.24%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$824,024
$952,887
$761,716
$294,727
$196,774
Portfolio
turnover
rate
............................
15.32%
28.31%
22.08%
16.18%
20.23%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
a
Year
Ended
April
30,
2024
2023
2022
2021
2020
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$10.73
$10.98
$12.32
$11.61
$11.83
Income
from
investment
operations
a
:
Net
investment
income
b
.........................
0.40
0.37
0.34
0.36
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(0.07)
(0.26)
(1.35)
0.71
(0.22)
Total
from
investment
operations
....................
0.33
0.11
(1.01)
1.07
0.16
Less
distributions
from:
Net
investment
income
..........................
(0.39)
(0.36)
(0.33)
(0.36)
(0.38)
Net
asset
value,
end
of
year
.......................
$10.67
$10.73
$10.98
$12.32
$11.61
Total
return
....................................
3.18%
1.12%
(8.39)%
9.27%
1.33%
Ratios
to
average
net
assets
Expenses
c
.....................................
0.54%
d
0.54%
d
0.52%
d
0.53%
d
0.52%
Net
investment
income
...........................
3.75%
3.44%
2.80%
2.98%
3.21%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$1,135,784
$998,541
$1,383,620
$1,829,553
$1,465,542
Portfolio
turnover
rate
............................
15.32%
28.31%
22.08%
16.18%
20.23%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
d
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments,
April
30,
2024
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Shares
a
Value
a
Common
Stocks
0.0%
Independent
Power
and
Renewable
Electricity
Producers
0.0%
a,b
AES
Guayama
Holdings
BV
...........................................
53,204
$
—
b
Total
Common
Stocks
(Cost
$
–
)
...............................................
—
a
Management
Investment
Companies
0.0%
†
Capital
Markets
0.0%
†
c
Franklin
Municipal
Green
Bond
ETF
.....................................
83,000
1,963,763
Total
Management
Investment
Companies
(Cost
$
2,255,733
)
.....................
1,963,763
Principal
Amount
a
a
a
a
Corporate
Bonds
0.4%
Software
0.4%
a
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
35,660,000
34,256,079
Total
Corporate
Bonds
(Cost
$
35,660,000
)
......................................
34,256,079
d
Senior
Floating
Rate
Interests
0.3%
Real
Estate
Management
&
Development
0.1%
a
,e
TBG
Hillcrest
Senior
II
LP
,
Delayed
Draw
CME
Term
Loan
,
6.886
%
,
(
1-month
SOFR
+
1.55
%
),
1/01/38
...................................................
6,343,784
6,349,566
Residential
REITs
0.2%
a
,e
Centennial
Gardens
LP
,
Delay
Draw
CME
Term
Loan
,
6.886
%
,
(
1-month
SOFR
+
1.5
%
),
7/27/24
....................................................
16,317,314
16,398,277
Total
Senior
Floating
Rate
Interests
(Cost
$
22,661,098
)
..........................
22,747,843
Municipal
Bonds
98.1%
Alabama
2.8%
Alabama
Public
Health
Care
Authority
(The)
,
State
of
Alabama
Department
of
Public
Health
,
Revenue
,
2015
,
Refunding
,
5
%
,
9/01/44
...........................
17,085,000
17,164,944
Alabama
Special
Care
Facilities
Financing
Authority-Birmingham
,
Ascension
Health
Credit
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
11/15/46
...................
10,000,000
10,109,062
f
Black
Belt
Energy
Gas
District
,
Revenue
,
2021
B
,
Mandatory
Put
,
4
%
,
12/01/26
...........................
20,000,000
19,983,672
Revenue
,
2022
F
,
Mandatory
Put
,
5.5
%
,
12/01/28
.........................
24,715,000
26,039,551
Revenue
,
2023
B-2
,
Mandatory
Put
,
5.25
%
,
12/01/30
.......................
17,015,000
18,181,103
Revenue
,
2023
D-1
,
Refunding
,
Mandatory
Put
,
5.5
%
,
2/01/29
................
4,000,000
4,224,115
Revenue
,
2024
A
,
Mandatory
Put
,
5.25
%
,
9/01/32
.........................
4,500,000
4,820,538
Chilton
County
Health
Care
Authority
,
County
of
Chilton
Sales
Tax
,
Revenue
,
2015
A
,
5
%
,
11/01/40
.....................................................
8,425,000
8,490,307
County
of
Jefferson
,
Sewer
,
Revenue
,
2024
,
Refunding
,
5.25
%
,
10/01/49
.......................
15,500,000
16,332,415
Sewer
,
Revenue
,
2024
,
Refunding
,
5.5
%
,
10/01/53
........................
24,100,000
25,812,587
g
County
of
Mobile
,
Revenue
,
144A,
2020
,
4
%
,
11/01/45
.......................
13,200,000
11,728,519
f
Energy
Southeast
A
Cooperative
District
,
Revenue
,
2023
A-1
,
Mandatory
Put
,
5.5
%
,
1/01/31
.........................
25,230,000
26,965,809
Revenue
,
2023
B-1
,
Mandatory
Put
,
5.75
%
,
11/01/31
.......................
15,000,000
16,337,265
Jacksonville
Public
Educational
Building
Authority
,
Jacksonville
State
University
,
Revenue
,
2023
A
,
AGMC
Insured
,
5.25
%
,
8/01/53
...
8,000,000
8,466,418
Jacksonville
State
University
,
Revenue
,
2023
A
,
AGMC
Insured
,
5.5
%
,
8/01/58
....
2,000,000
2,148,776
f
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue
,
2021
B
,
Mandatory
Put
,
4
%
,
12/01/31
...........................
1,000,000
979,315
Revenue
,
2022
A-1
,
Mandatory
Put
,
5.5
%
,
12/01/29
........................
12,850,000
13,610,724
Revenue
,
2023
B
,
Mandatory
Put
,
5
%
,
6/01/30
............................
6,000,000
6,311,758
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Alabama
(continued)
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
$
5,000,000
$
5,124,549
242,831,427
Alaska
0.4%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue
,
2015
,
Refunding
,
5.25
%
,
10/01/36
.............................
16,045,000
16,226,724
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/39
................................
12,950,000
13,036,643
Northern
Tobacco
Securitization
Corp.
,
Revenue,
Senior
Lien
,
2021
A
,
1
,
Refunding
,
4
%
,
6/01/50
...................
3,250,000
2,937,140
Revenue,
Senior
Lien
,
2021
B-1
,
2
,
Refunding
,
4
%
,
6/01/50
..................
1,490,000
1,492,696
33,693,203
Arizona
2.6%
Arizona
Board
of
Regents
,
Revenue
,
2016
C
,
5
%
,
7/01/42
.....................
9,000,000
9,195,449
Arizona
Industrial
Development
Authority
,
KIPP
NYC
Public
Charter
Schools
,
Revenue
,
2021
B
,
5
%
,
7/01/32
.............
205,000
209,105
KIPP
NYC
Public
Charter
Schools
,
Revenue
,
2021
B
,
5
%
,
7/01/33
.............
220,000
224,230
KIPP
NYC
Public
Charter
Schools
,
Revenue
,
2021
B
,
4
%
,
7/01/34
.............
230,000
224,929
KIPP
NYC
Public
Charter
Schools
,
Revenue
,
2021
B
,
4
%
,
7/01/35
.............
235,000
228,630
KIPP
NYC
Public
Charter
Schools
,
Revenue
,
2021
B
,
4
%
,
7/01/36
.............
220,000
211,576
KIPP
NYC
Public
Charter
Schools
,
Revenue
,
2021
B
,
4
%
,
7/01/41
.............
720,000
647,786
KIPP
NYC
Public
Charter
Schools
,
Revenue
,
2021
B
,
4
%
,
7/01/51
.............
550,000
452,960
KIPP
NYC
Public
Charter
Schools
,
Revenue
,
2021
B
,
4
%
,
7/01/61
.............
6,050,000
4,767,951
Leman
Academy
of
Excellence
Obligated
Group
,
Revenue
,
2022
A
,
Refunding
,
4.5
%
,
7/01/54
........................................................
10,000,000
8,518,850
f
Chandler
Industrial
Development
Authority
,
Intel
Corp.
,
Revenue
,
2022-1
,
Mandatory
Put
,
5
%
,
9/01/27
..................................................
9,000,000
9,195,233
City
of
Glendale
Municipal
Property
Corp.
,
Excise
Tax
,
Revenue
,
2012
C
,
Refunding
,
5
%
,
7/01/38
......................................................
15,500,000
15,504,428
City
of
Lake
Havasu
City
,
Wastewater
System
,
Revenue
,
2015
B
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/40
...............................................
15,000,000
15,056,738
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport
,
Revenue
,
2017
A
,
5
%
,
7/01/47
..................................
10,000,000
10,100,123
Airport
,
Revenue,
Junior
Lien
,
2017
D
,
Refunding
,
4
%
,
7/01/40
...............
25,000,000
24,883,330
Airport
,
Revenue,
Senior
Lien
,
2018
,
5
%
,
7/01/48
..........................
6,000,000
6,066,867
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges
,
Revenue
,
2019
A
,
4
%
,
7/01/45
..................................................
14,985,000
13,887,227
Glendale
Industrial
Development
Authority
,
People
of
Faith,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
5/15/56
........................................
10,000,000
8,609,108
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group
,
Revenue
,
2019
E
,
4
%
,
1/01/45
...............
10,000,000
9,470,047
Banner
Health
Obligated
Group
,
Revenue
,
2019
F
,
4
%
,
1/01/45
...............
25,000,000
23,675,117
Christian
Care
Obligated
Group
,
Revenue
,
2016
A
,
Pre-Refunded
,
5
%
,
1/01/36
...
5,000,000
5,118,038
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.
,
Revenue
,
2009
A
,
Refunding
,
3.6
%
,
2/01/40
.............
19,500,000
16,760,162
Southern
California
Edison
Co.
,
Revenue
,
2000
A
,
Refunding
,
2.4
%
,
6/01/35
.....
5,000,000
4,000,343
Salt
River
Project
Agricultural
Improvement
&
Power
District
,
Revenue
,
2023
A
,
5
%
,
1/01/50
.........................................................
6,500,000
6,916,948
State
of
Arizona
,
Distribution
,
Revenue
,
2005
B
,
NATL
Insured
,
5.5
%
,
7/01/32
.................
6,000,000
7,039,921
Distribution
,
Revenue
,
2005
B
,
NATL
Insured
,
5.5
%
,
7/01/34
.................
5,000,000
6,015,385
Distribution
,
Revenue
,
2005
B
,
NATL
Insured
,
5.5
%
,
7/01/35
.................
9,860,000
11,986,916
University
of
Arizona
(The)
,
Revenue
,
2014
,
5
%
,
8/01/44
......................
10,000,000
10,010,793
228,978,190
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arkansas
0.1%
Arkansas
Development
Finance
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group
,
Revenue
,
2020
B-1
,
Refunding
,
5
%
,
9/01/44
........................
$
6,100,000
$
5,835,103
California
7.8%
g
Align
Affordable
Housing
Bond
Fund
LP
,
Coronado
Springs
Tower
LLC
,
Revenue
,
144A,
2020-2
,
A
,
4
%
,
9/01/27
.........................................
17,835,000
17,452,439
f
ARC70
II
TRUST
,
Revenue
,
2021-1
,
A
,
Mandatory
Put
,
4
%
,
12/01/37
............
11,360,000
9,663,437
f
California
Community
Choice
Financing
Authority
,
Revenue
,
2023
A-1
,
Mandatory
Put
,
5
%
,
8/01/29
..........................
5,000,000
5,238,521
Revenue
,
2023
C
,
Mandatory
Put
,
5.25
%
,
10/01/31
........................
43,250,000
45,143,909
g
California
Community
Housing
Agency
,
Aster
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A-1
,
4
%
,
2/01/56
..........
22,400,000
19,995,181
Brio
Apartments
&
Next
on
Lex
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A-1
,
4
%
,
2/01/56
....................................................
17,850,000
14,656,272
K
Street
Flats
,
Revenue
,
144A,
2021
A-1
,
3
%
,
2/01/57
......................
10,000,000
6,637,815
California
Statewide
Communities
Development
Authority
,
Enloe
Medical
Center
Obligated
Group
,
Revenue
,
2022
A
,
AGMC
Insured
,
5
%
,
8/15/42
........................................................
425,000
456,189
Enloe
Medical
Center
Obligated
Group
,
Revenue
,
2022
A
,
AGMC
Insured
,
5.125
%
,
8/15/47
........................................................
620,000
660,467
Enloe
Medical
Center
Obligated
Group
,
Revenue
,
2022
A
,
AGMC
Insured
,
5.25
%
,
8/15/52
........................................................
7,815,000
8,309,199
Enloe
Medical
Center
Obligated
Group
,
Revenue
,
2022
A
,
AGMC
Insured
,
5.375
%
,
8/15/57
........................................................
12,495,000
13,357,063
g
CMFA
Special
Finance
Agency
,
Latitude33
,
Revenue
,
144A,
2021
A-1
,
3
%
,
12/01/56
.......................
12,000,000
8,277,911
Solana
at
Grand
,
Revenue,
Senior
Lien
,
144A,
2021
A-1
,
4
%
,
8/01/56
..........
5,300,000
4,522,942
g
CMFA
Special
Finance
Agency
Enclave
,
Revenue,
Senior
Lien
,
144A,
2022
A-1
,
4
%
,
8/01/58
.........................................................
26,500,000
20,298,454
g
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue,
Senior
Lien
,
144A,
2022
A-1
,
3.25
%
,
2/01/57
............................................
27,500,000
19,818,486
Corona-Norco
Unified
School
District
,
GO
,
C
,
AGMC
Insured
,
6.2
%
,
8/01/29
..................................
3,250,000
3,586,209
GO
,
C
,
Pre-Refunded
,
AGMC
Insured
,
6.8
%
,
8/01/39
.......................
8,500,000
9,482,698
GO
,
C
,
AGMC
Insured
,
Zero
Cpn.,
8/01/39
...............................
7,500,000
3,809,185
g
CSCDA
Community
Improvement
Authority
,
777
Place-Pomona
,
Revenue,
Senior
Lien
,
144A,
2021
A-1
,
3.6
%
,
5/01/47
.......
10,000,000
8,230,439
777
Place-Pomona
,
Revenue,
Senior
Lien
,
144A,
2021
A-2
,
3.25
%
,
5/01/57
......
12,500,000
8,644,069
Acacia
on
Santa
Rosa
Creek
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
10/01/56
.
13,000,000
10,997,489
Crescent
(The)
,
Revenue,
Senior
Lien
,
144A,
2022
A-2
,
4.3
%
,
7/01/59
..........
13,700,000
11,374,170
Escondido
Portfolio
,
Revenue,
Senior
Lien
,
144A,
2021
A-1
,
3
%
,
6/01/48
........
10,000,000
6,859,972
Jefferson
Platinum
Triangle
Apartments
,
Revenue
,
144A,
2021
A-1
,
2.875
%
,
8/01/41
2,915,000
2,614,798
Monterey
Station
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A-1
,
3
%
,
7/01/43
.
7,855,000
6,054,471
Park
Crossing
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
3.25
%
,
12/01/58
.
18,750,000
12,488,325
Vineyard
Garden
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
3.25
%
,
10/01/58
14,000,000
9,448,603
Waterscape
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
3
%
,
9/01/56
......
1,670,000
1,137,250
Westgate
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A-1
,
3
%
,
6/01/47
......
15,000,000
10,358,780
Wood
Creek
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A-1
,
3
%
,
12/01/49
...
30,000,000
20,395,695
Wood
Creek
Apartments
,
Revenue,
Senior
Lien
,
144A,
2021
A-2
,
4
%
,
12/01/58
...
25,000,000
18,521,060
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue
,
2013
A
,
Refunding
,
AGMC
Insured
,
5.4
%
,
1/15/30
.................
15,475,000
17,294,848
Revenue
,
2013
A
,
Refunding
,
6.85
%
,
1/15/42
.............................
20,000,000
23,705,680
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
12,500,000
15,606,599
New
Haven
Unified
School
District
,
GO
,
2009
,
AGMC
Insured
,
Zero
Cpn.,
8/01/31
............................
2,055,000
1,610,947
GO
,
2009
,
AGMC
Insured
,
Zero
Cpn.,
8/01/32
............................
7,830,000
5,918,383
GO
,
2009
,
AGMC
Insured
,
Zero
Cpn.,
8/01/33
............................
7,660,000
5,575,383
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
Norman
Y
Mineta
San
Jose
International
Airport
SJC
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
3/01/47
......................................................
$
23,855,000
$
23,988,431
Oro
Grande
Elementary
School
District
,
COP
,
2020
,
Refunding
,
4
%
,
9/15/24
....................................
2,135,000
2,120,669
COP
,
2020
,
Refunding
,
4
%
,
9/15/25
....................................
2,120,000
2,091,649
COP
,
2020
,
Refunding
,
4
%
,
9/15/27
....................................
2,400,000
2,349,179
COP
,
2020
,
Refunding
,
4
%
,
9/15/28
....................................
2,095,000
2,040,165
Rialto
Unified
School
District
,
GO
,
2011
A
,
AGMC
Insured
,
Zero
Cpn.,
8/01/36
......
20,000,000
11,985,954
San
Diego
County
Regional
Airport
Authority
,
Revenue,
Senior
Lien
,
2023
B
,
5.25
%
,
7/01/58
.........................................................
15,000,000
15,730,052
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/01/49
...............................
26,805,000
27,324,352
Revenue,
Second
Series
,
2019
E
,
5
%
,
5/01/50
............................
13,000,000
13,228,999
San
Jose
Unified
School
District
,
GO
,
2018
E
,
4
%
,
8/01/42
....................
10,600,000
10,648,520
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn.,
8/01/42
...............
50,000,000
52,102,070
San
Mateo
Union
High
School
District
,
GO
,
2011
A
,
Zero
Cpn.,
9/01/33
.......................................
6,065,000
5,771,458
GO
,
2011
A
,
Zero
Cpn.,
9/01/41
.......................................
20,000,000
20,216,262
Santa
Ana
Unified
School
District
,
GO
,
2009
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/35
...........................
10,000,000
6,714,267
GO
,
2009
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/36
...........................
18,865,000
12,039,473
GO
,
2009
B
,
AGMC
Insured
,
Zero
Cpn.,
8/01/37
...........................
10,000,000
6,045,428
h
Southern
California
Public
Power
Authority
,
Revenue
,
FRN
,
2007
B
,
5.201
%
,
(
3-month
TSOF
+
1.645
%
),
11/01/38
...........................................
6,000,000
5,557,715
State
of
California
,
GO
,
2002
,
NATL
Insured
,
5
%
,
10/01/32
....................
20,000
20,012
West
Contra
Costa
Unified
School
District
,
GO
,
C-1
,
Refunding
,
AGMC
Insured
,
Zero
Cpn.,
8/01/29
....................
10,000,000
8,407,939
GO
,
C-1
,
Refunding
,
AGMC
Insured
,
Zero
Cpn.,
8/01/30
....................
20,845,000
16,986,342
GO
,
C-1
,
Refunding
,
AGMC
Insured
,
Zero
Cpn.,
8/01/31
....................
20,000,000
15,767,972
GO
,
C-1
,
Refunding
,
AGMC
Insured
,
Zero
Cpn.,
8/01/32
....................
10,730,000
8,196,348
677,536,594
Colorado
2.8%
g
Access
25
Metropolitan
District
No.
2
,
GO
,
144A,
2023
,
6.75
%
,
12/01/53
..........
3,555,000
3,683,726
Brighton
Crossing
Metropolitan
District
No.
4
,
GO
,
2017
A
,
5
%
,
12/01/47
..........
2,440,000
2,287,335
g
Broadway
Park
North
Metropolitan
District
No.
2
,
GO
,
144A,
2020
,
Refunding
,
5
%
,
12/01/49
........................................................
1,575,000
1,431,526
City
&
County
of
Denver
,
Airport
System
,
Revenue
,
1992
C
,
NATL
Insured
,
ETM,
6.125
%
,
11/15/25
.......
1,055,000
1,083,969
Airport
System
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/37
..................
10,000,000
10,374,794
Airport
System
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/43
..................
5,000,000
5,105,986
Airport
System
,
Revenue
,
2018
A
,
Refunding
,
5.25
%
,
12/01/43
...............
11,045,000
11,401,536
Airport
System
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/48
..................
15,500,000
15,675,999
Airport
System
,
Revenue
,
2022
D
,
Refunding
,
5.75
%
,
11/15/45
...............
10,000,000
11,142,088
Airport
System
,
Revenue
,
2022
D
,
Refunding
,
5
%
,
11/15/53
..................
10,000,000
10,277,846
Pledged
Excise
Tax
,
Revenue
,
2018
A-1
,
5
%
,
8/01/48
......................
39,690,000
40,217,976
Pledged
Excise
Tax
,
Revenue
,
2018
A-2
,
Zero
Cpn.,
8/01/35
.................
2,000,000
1,244,111
Pledged
Excise
Tax
,
Revenue
,
2018
A-2
,
Zero
Cpn.,
8/01/36
.................
2,500,000
1,466,810
Pledged
Excise
Tax
,
Revenue
,
2018
A-2
,
Zero
Cpn.,
8/01/37
.................
2,455,000
1,355,242
Pledged
Excise
Tax
,
Revenue
,
2018
A-2
,
Zero
Cpn.,
8/01/38
.................
2,000,000
1,040,408
Colorado
Educational
&
Cultural
Facilities
Authority
,
James
Irwin
Educational
Foundation
Obligated
Group
,
Revenue
,
2022
,
5
%
,
9/01/62
...................
2,200,000
2,067,310
Colorado
Health
Facilities
Authority
,
AdventHealth
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
11/15/41
......
30,505,000
30,864,608
AdventHealth
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/48
...............
12,000,000
12,255,554
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-2
,
Refunding
,
4
%
,
8/01/49
13,000,000
11,824,448
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
(continued)
Colorado
Health
Facilities
Authority,
(continued)
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2022
A
,
5.25
%
,
11/01/52
......
$
10,500,000
$
11,087,022
Covenant
Living
Communities
and
Services
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
12/01/50
...........................................
4,930,000
3,978,781
University
of
Colorado
Health
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
9/01/50
...
3,000,000
2,756,178
Constitution
Heights
Metropolitan
District
,
GO
,
2020
,
Refunding
,
5
%
,
12/01/49
.....
1,760,000
1,612,967
g
DIATC
Metropolitan
District
,
GO
,
144A,
2019
,
Refunding
,
5
%
,
12/01/49
...........
2,000,000
1,845,644
Evan's
Place
Metropolitan
District
,
GO
,
2020
A-3
,
5
%
,
12/01/50
.................
1,575,000
1,404,479
g
Fiddlers
Business
Improvement
District
,
GO
,
144A,
2022
,
Refunding
,
5.55
%
,
12/01/47
3,500,000
3,543,005
Hunters
Overlook
Metropolitan
District
No.
5
,
GO
,
2019
A
,
5
%
,
12/01/39
...........................................
746,000
713,920
GO
,
2019
A
,
5
%
,
12/01/49
...........................................
1,000,000
908,906
Park
Creek
Metropolitan
District
,
Westerly
Creek
District
Service
Area
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/01/46
.....................................
2,875,000
2,960,795
Prairie
Center
Metropolitan
District
No.
3
,
GO
,
2024
A
,
Refunding
,
5.875
%
,
12/15/46
.
1,375,000
1,443,750
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
20,000,000
24,154,992
Severance
Shores
Metropolitan
District
No.
4
,
GO
,
2020
A
,
5
%
,
12/01/49
.........
5,745,000
5,308,967
South
Maryland
Creek
Ranch
Metropolitan
District
,
GO
,
2023
,
Refunding
,
AGMC
Insured
,
5
%
,
12/01/48
........................
800,000
827,645
GO
,
2023
,
Refunding
,
AGMC
Insured
,
5.125
%
,
12/01/57
....................
2,150,000
2,227,736
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2
,
Revenue
,
2020
A
,
Refunding
,
3.75
%
,
12/01/40
.................................................
500,000
421,580
Sterling
Ranch
Colorado
Metropolitan
District
No.
2
,
Revenue
,
2020
A
,
Refunding
,
4.25
%
,
12/01/50
.................................................
1,150,000
963,933
240,961,572
Connecticut
0.2%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
7/01/38
..........
2,200,000
2,175,204
Hartford
HealthCare
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
7/01/46
..........
6,000,000
5,482,595
Stamford
Hospital
Obligated
Group
(The)
,
Revenue
,
M
,
Refunding
,
4
%
,
7/01/41
...
5,000,000
4,597,019
University
of
Hartford
(The)
,
Revenue
,
2022
P
,
5.375
%
,
7/01/52
...............
6,000,000
5,515,554
17,770,372
Delaware
0.1%
County
of
Kent
,
CHF-Dover
LLC
,
Revenue
,
2018
A
,
5
%
,
7/01/40
...........................
1,100,000
1,107,273
CHF-Dover
LLC
,
Revenue
,
2018
A
,
5
%
,
7/01/48
...........................
1,485,000
1,474,600
CHF-Dover
LLC
,
Revenue
,
2018
A
,
5
%
,
7/01/53
...........................
1,100,000
1,078,411
Delaware
State
Economic
Development
Authority
,
Newark
Charter
School,
Inc.
,
Revenue
,
2021
,
Refunding
,
4
%
,
9/01/41
..........
1,600,000
1,440,264
Newark
Charter
School,
Inc.
,
Revenue
,
2021
,
Refunding
,
4
%
,
9/01/51
..........
3,300,000
2,724,464
7,825,012
Florida
9.8%
Alachua
County
Health
Facilities
Authority
,
Oak
Hammock
at
the
University
of
Florida
Obligated
Group
,
Revenue
,
2022
,
Refunding
,
4
%
,
10/01/40
...........................................
2,500,000
2,173,904
Oak
Hammock
at
the
University
of
Florida
Obligated
Group
,
Revenue
,
2022
,
Refunding
,
4
%
,
10/01/46
...........................................
1,750,000
1,412,178
Ave
Maria
Stewardship
Community
District
,
Assessments
,
Special
Assessment
,
2022
A
,
Refunding
,
4
%
,
5/01/42
...........................................
5,020,000
4,331,991
Babcock
Ranch
Community
Independent
Special
District
,
Assessment
Area
3A
,
Special
Assessment
,
2020
,
4
%
,
5/01/40
................
1,840,000
1,711,988
Assessment
Area
3A
,
Special
Assessment
,
2020
,
4
%
,
5/01/50
................
1,500,000
1,287,777
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
g
Bannon
Lakes
Community
Development
District
,
Phase
2
,
Special
Assessment
,
144A,
2021
,
3.5
%
,
5/01/41
................................................
$
700,000
$
596,532
Brevard
County
Health
Facilities
Authority
,
Health
First,
Inc.
Obligated
Group
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
4/01/52
.......................................
10,000,000
10,322,104
Capital
Projects
Finance
Authority
,
CAPFA
Capital
Corp.
2000F
,
Revenue
,
2020
A-1
,
Refunding
,
5
%
,
10/01/31
......
1,500,000
1,533,182
CAPFA
Capital
Corp.
2000F
,
Revenue
,
2020
A-1
,
Refunding
,
5
%
,
10/01/32
......
1,100,000
1,122,071
CAPFA
Capital
Corp.
2000F
,
Revenue
,
2020
A-1
,
Refunding
,
5
%
,
10/01/35
......
1,000,000
1,009,169
Provident
Group
-
Continuum
Properties
LLC
,
Revenue,
Senior
Lien
,
2023
A-1
,
5
%
,
11/01/53
.......................................................
2,125,000
2,054,269
Provident
Group
-
Continuum
Properties
LLC
,
Revenue,
Senior
Lien
,
2023
A-1
,
5
%
,
11/01/58
.......................................................
2,000,000
1,907,713
Capital
Trust
Agency,
Inc.
,
g
Revenue
,
144A,
2021
A-1
,
3.65
%
,
12/01/36
..............................
22,800,000
19,433,311
Lutz
Preparatory
School,
Inc.
,
Revenue
,
2021
A
,
4
%
,
6/01/31
.................
500,000
494,059
Lutz
Preparatory
School,
Inc.
,
Revenue
,
2021
A
,
4
%
,
6/01/41
.................
325,000
293,564
Lutz
Preparatory
School,
Inc.
,
Revenue
,
2021
A
,
4
%
,
6/01/51
.................
385,000
318,145
Lutz
Preparatory
School,
Inc.
,
Revenue
,
2021
A
,
4
%
,
6/01/56
.................
485,000
390,615
g
SHI
-
Lake
Osborne
LLC
,
Revenue
,
144A,
2021
A-1
,
3.68
%
,
1/01/57
...........
2,000,000
1,362,134
g
Capital
Trust
Authority
,
Gulf
Coast
Portfolio
Obligated
Group
,
Revenue
,
144A,
2024
,
Refunding
,
Zero
Cpn.,
3/01/29
........................................
56,975,000
44,232,336
Central
Florida
Expressway
Authority
,
Revenue,
Senior
Lien
,
2016
B
,
Refunding
,
4
%
,
7/01/39
.....................
5,000,000
4,859,073
Revenue,
Senior
Lien
,
2016
B
,
Refunding
,
4
%
,
7/01/40
.....................
5,825,000
5,623,146
Revenue,
Senior
Lien
,
2018
,
5
%
,
7/01/48
................................
16,000,000
16,492,170
Centre
Lake
Community
Development
District
,
Special
Assessment
,
2021
,
3
%
,
5/01/42
.................................
1,140,000
874,896
Special
Assessment
,
2021
,
4
%
,
5/01/52
.................................
1,845,000
1,576,002
City
of
Atlantic
Beach
,
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/38
...................................................
1,105,000
1,118,380
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/53
...................................................
9,235,000
8,692,498
City
of
Cape
Coral
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/01/39
......
10,000,000
10,333,089
City
of
Cocoa
,
Water
&
Sewer
,
Revenue
,
2018
B
,
5
%
,
10/01/48
.................
10,325,000
10,856,492
City
of
Fort
Myers
,
Utility
System
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
10/01/44
......
7,000,000
6,921,499
City
of
Gainesville
,
Utilities
System
,
Revenue
,
2017
A
,
5
%
,
10/01/37
..........................
5,000,000
5,224,661
Utilities
System
,
Revenue
,
2019
A
,
5
%
,
10/01/47
..........................
28,135,000
29,264,420
City
of
Jacksonville
,
Genesis
Health,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
11/01/45
..
5,000,000
4,431,734
Genesis
Health,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
5
%
,
11/01/50
..
20,000,000
20,285,774
City
of
Lakeland
,
Lakeland
Regional
Health
Systems
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/15/45
.....................................................
7,300,000
7,323,997
City
of
Melbourne
,
Water
&
Sewer
,
Revenue
,
2000
A
,
FGIC
Insured
,
ETM,
Zero
Cpn.,
10/01/26
......
1,500,000
1,379,714
Water
&
Sewer
,
Revenue
,
2002
B
,
Refunding
,
NATL
Insured
,
Zero
Cpn.,
10/01/26
.
4,500,000
4,115,654
City
of
Miami
Beach
,
Revenue
,
2015
A
,
5
%
,
9/01/40
........................................
11,000,000
11,062,222
Stormwater
,
Revenue
,
2015
,
5
%
,
9/01/41
................................
10,000,000
10,032,220
City
of
Palmetto
,
Renaissance
Arts
and
Education,
Inc.
,
Revenue
,
2022
A
,
Refunding
,
5.25
%
,
6/01/52
...................................................
3,000,000
3,010,308
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
9/01/50
........................................................
4,730,000
3,677,694
John
Knox
Village
of
Florida,
Inc.
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
9/01/56
.
10,150,000
7,578,182
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/15/47
........................................................
$
5,750,000
$
5,263,953
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
8/15/47
........................................................
7,845,000
7,925,447
City
of
St.
Petersburg
,
Public
Utility
,
Revenue
,
2018
,
Refunding
,
4
%
,
10/01/43
......
15,000,000
14,762,583
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
7/01/37
.........................................
5,000,000
5,084,773
State
of
Florida
Cigarette
Tax
,
Revenue
,
2020
A
,
Zero
Cpn.,
9/01/35
............
755,000
463,468
State
of
Florida
Cigarette
Tax
,
Revenue
,
2020
A
,
Zero
Cpn.,
9/01/36
............
800,000
464,206
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/49
.....
15,000,000
13,444,191
County
of
Miami-Dade
,
Aviation
,
Revenue
,
2014
B
,
Refunding
,
5
%
,
10/01/37
.......................
5,000,000
5,013,761
Seaport
Department
,
Revenue,
Senior
Lien
,
2022
A
,
Refunding
,
5.25
%
,
10/01/52
..
6,000,000
6,290,276
Transit
System
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/35
....................
7,000,000
7,084,292
Transit
System
,
Revenue
,
2018
,
5
%
,
7/01/43
.............................
10,000,000
10,383,851
Transit
System
,
Revenue
,
2018
,
4
%
,
7/01/47
.............................
5,000,000
4,781,104
Transit
System
,
Revenue
,
2020
A
,
4
%
,
7/01/48
...........................
5,000,000
4,757,064
Water
&
Sewer
System
,
Revenue
,
2019
B
,
4
%
,
10/01/49
....................
27,500,000
25,809,022
County
of
Monroe
,
Airport
,
Revenue
,
2022
,
5.25
%
,
10/01/47
................................
1,000,000
1,031,936
Airport
,
Revenue
,
2022
,
5
%
,
10/01/52
..................................
1,500,000
1,494,852
County
of
Osceola
,
Transportation
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
10/01/49
...
4,500,000
4,583,061
Crystal
Cay
Community
Development
District
,
Special
Assessment
,
2021
,
4
%
,
5/01/51
1,000,000
858,013
Cypress
Mill
Community
Development
District
,
Special
Assessment
,
2023
,
5
%
,
5/01/43
.................................
560,000
563,136
Special
Assessment
,
2023
,
5
%
,
5/01/53
.................................
1,000,000
954,037
g
Downtown
Doral
South
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
144A,
2018
,
5
%
,
12/15/48
.................................
4,000,000
3,884,796
g
Epperson
North
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2018
A-1
,
5.5
%
,
11/01/39
.............................
1,500,000
1,529,167
Escambia
County
Health
Facilities
Authority
,
Baptist
Hospital,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/15/36
.
4,165,000
4,278,936
Baptist
Hospital,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/15/37
.
6,000,000
6,123,259
Baptist
Hospital,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/15/40
.
4,000,000
4,043,896
Baptist
Hospital,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/15/45
.
19,465,000
17,217,887
Baptist
Hospital,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/15/50
.
18,985,000
16,269,788
Everlands
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
2024
,
5.55
%
,
6/15/54
...............................................
1,000,000
994,134
Florida
Development
Finance
Corp.
,
i
Brightline
Trains
Florida
LLC
,
Revenue
,
2024
,
Refunding
,
AGMC
Insured
,
5.25
%
,
7/01/53
........................................................
50,000,000
52,141,010
River
City
Education
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
7/01/35
..........
325,000
309,804
River
City
Education
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
7/01/45
..........
600,000
498,271
Shands
Jacksonville
Medical
Center
Obligated
Group
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
2/01/33
....................................................
1,350,000
1,358,773
Shands
Jacksonville
Medical
Center
Obligated
Group
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
2/01/39
....................................................
5,350,000
5,155,841
Shands
Jacksonville
Medical
Center
Obligated
Group
,
Revenue
,
2022
A
,
Refunding
,
5
%
,
2/01/52
....................................................
7,000,000
6,124,907
Florida
Housing
Finance
Corp.
,
Revenue
,
2020-1
,
GNMA
Insured
,
2.75
%
,
7/01/50
...
1,410,000
962,810
Fort
Pierce
Utilities
Authority
,
Revenue
,
1999
B
,
AMBAC
Insured
,
Zero
Cpn.,
10/01/24
2,560,000
2,515,799
Greater
Orlando
Aviation
Authority
,
Revenue
,
2017
A
,
5
%
,
10/01/47
.......................................
10,925,000
11,032,365
Revenue
,
2019
A
,
4
%
,
10/01/49
.......................................
15,000,000
13,909,370
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Halifax
Hospital
Medical
Center
,
Halifax
Hospital
Medical
Center
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
6/01/36
.................................
$
2,500,000
$
2,528,949
Heritage
Harbour
North
Community
Development
District
,
Special
Assessment
,
2014
,
5.125
%
,
5/01/45
...................................................
2,170,000
2,176,102
Herons
Glen
Recreation
District
,
Special
Assessment
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
5/01/45
.............
1,515,000
1,485,973
Special
Assessment
,
2020
,
Refunding
,
BAM
Insured
,
4
%
,
5/01/50
.............
1,800,000
1,702,103
Hillsborough
County
Aviation
Authority
,
Revenue
,
2015
A
,
5
%
,
10/01/44
.......................................
5,000,000
5,004,609
Revenue
,
2018
E
,
5
%
,
10/01/48
.......................................
5,000,000
5,074,790
Hillsborough
County
Industrial
Development
Authority
,
Florida
Health
Sciences
Center,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
8/01/50
.......................
6,500,000
5,683,089
Hollywood
Beach
Community
Development
District
I
,
Special
Assessment
,
2020
,
Refunding
,
4
%
,
10/01/45
............................................
4,000,000
3,566,094
Kingman
Gate
Community
Development
District
,
Special
Assessment
,
2021
,
3.6
%
,
6/15/41
.........................................................
750,000
680,025
g
Knightsbridge
Community
Development
District
,
Special
Assessment
,
144A,
2024
,
5.2
%
,
6/15/44
....................................................
245,000
241,083
Lee
County
Industrial
Development
Authority
,
Shell
Point
Obligated
Group
,
Revenue
,
2019
,
5
%
,
11/15/44
................................................
6,360,000
6,287,469
Leomas
Landing
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2021
,
3.35
%
,
5/01/41
....................................
320,000
265,775
g
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
27,000,000
23,726,250
Los
Cayos
Community
Development
District
,
Special
Assessment
,
2024
,
5.25
%
,
6/15/44
..............................
850,000
843,795
Special
Assessment
,
2024
,
5.55
%
,
6/15/54
..............................
800,000
793,139
Miami
Beach
Redevelopment
Agency
,
Tax
Allocation
,
2015
A
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/40
...............
5,000,000
5,000,240
Tax
Allocation
,
2015
A
2015
B
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/44
.........
12,000,000
11,999,396
Miami-Dade
County
Expressway
Authority
,
Revenue
,
2013
A
,
Refunding
,
5
%
,
7/01/29
...............................
10,000,000
10,004,168
Revenue
,
2013
A
,
Refunding
,
5
%
,
7/01/32
...............................
6,375,000
6,377,762
Revenue
,
A
,
Refunding
,
5
%
,
7/01/40
...................................
49,035,000
48,500,263
Miami-Dade
County
Health
Facilities
Authority
,
Variety
Children's
Hospital
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/01/47
...........................
3,500,000
3,261,996
Mid-Bay
Bridge
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
10/01/40
............
5,000,000
5,016,744
Middleton
Community
Development
District
A
,
Phase
I
,
Special
Assessment
,
2022
,
6.2
%
,
5/01/53
....................................................
5,000,000
5,194,571
North
Sumter
County
Utility
Dependent
District
,
Revenue,
Senior
Lien
,
2019
,
BAM
Insured
,
5
%
,
10/01/44
....................
4,000,000
4,162,129
Revenue,
Senior
Lien
,
2019
,
5
%
,
10/01/49
...............................
3,635,000
3,708,323
Revenue,
Senior
Lien
,
2019
,
5
%
,
10/01/54
...............................
7,000,000
7,104,936
Palm
Beach
County
Educational
Facilities
Authority
,
Palm
Beach
Atlantic
University
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
10/01/41
.......................................................
3,695,000
3,452,979
Palm
Beach
Atlantic
University
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
10/01/46
.......................................................
7,570,000
6,842,244
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
B
,
5
%
,
11/15/42
.......................................................
1,000,000
1,029,736
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
B
,
5
%
,
5/15/36
....
1,235,000
1,201,243
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
B
,
5
%
,
5/15/41
....
5,060,000
4,677,008
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
B
,
5
%
,
5/15/47
....
130,000
114,028
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2023
C
,
Refunding
,
7.625
%
,
5/15/58
.................................................
1,500,000
1,637,347
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Pine
Ridge
Plantation
Community
Development
District
,
Special
Assessment,
Senior
Lien
,
2020
A-1
,
Refunding
,
AGMC
Insured
,
2.625
%
,
5/01/34
........................................................
$
1,200,000
$
1,013,661
Special
Assessment,
Senior
Lien
,
2020
A-1
,
Refunding
,
AGMC
Insured
,
2.8
%
,
5/01/37
........................................................
995,000
799,167
Poitras
East
Community
Development
District
,
Special
Assessment
,
2023
,
5.25
%
,
5/01/52
.........................................................
2,500,000
2,499,822
Preserve
at
South
Branch
Community
Development
District
,
Phase
3
,
Special
Assessment
,
2021
,
3.5
%
,
5/01/41
.....................................
750,000
671,464
Reunion
West
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2022
,
Refunding
,
3
%
,
5/01/36
..............................
1,250,000
1,075,529
Rhodine
Road
North
Community
Development
District
,
Assessment
Area
,
Special
Assessment
,
2022
,
3.3
%
,
5/01/42
.....................................
495,000
402,030
River
Hall
Community
Development
District
,
Assessment
Area
,
Special
Assessment
,
2021
A-1
,
Refunding
,
3
%
,
5/01/36
.....................................
750,000
619,193
Sarasota
County
Health
Facilities
Authority
,
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
1/01/37
........................................................
2,350,000
2,328,110
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
1/01/42
........................................................
1,600,000
1,513,667
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
1/01/47
........................................................
2,450,000
2,230,211
Sunnyside
Village
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/15/33
..............
600,000
606,536
Sunnyside
Village
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/15/38
..............
1,025,000
1,013,781
Sunnyside
Village
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/15/48
..............
1,850,000
1,704,296
Sarasota
County
Public
Hospital
District
,
Obligated
Group
,
Revenue
,
2022
,
4
%
,
7/01/52
............................
15,000,000
13,795,286
Sarasota
County
Public
Hospital
District
Obligated
Group
,
Revenue
,
2018
,
4
%
,
7/01/48
........................................................
10,000,000
9,315,219
South
Broward
Hospital
District
,
South
Broward
Hospital
District
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/01/45
.........................................
20,715,000
21,213,712
South
Creek
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2021
,
3.25
%
,
6/15/41
....................................
500,000
407,654
South
Fork
East
Community
Development
District
,
Assessments
,
Special
Assessment
,
2021
,
Refunding
,
3
%
,
5/01/26
.............
100,000
98,211
Assessments
,
Special
Assessment
,
2021
,
Refunding
,
3
%
,
5/01/31
.............
246,000
227,838
Assessments
,
Special
Assessment
,
2021
,
Refunding
,
3
%
,
5/01/38
.............
597,000
492,141
St.
Johns
County
Industrial
Development
Authority
,
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/55
...
7,250,000
5,668,812
State
of
Florida
,
GO
,
2016
F
,
Refunding
,
4
%
,
6/01/37
........................
8,000,000
8,063,906
Tampa
Sports
Authority
,
Revenue
,
1995
,
NATL
Insured
,
6.1
%
,
10/01/26
...........
1,235,000
1,279,408
Timber
Creek
Southwest
Community
Development
District
,
Special
Assessment
,
2020
,
4
%
,
6/15/40
.................................
1,000,000
883,497
Special
Assessment
,
2020
,
4
%
,
6/15/50
.................................
2,000,000
1,621,328
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
10/01/46
..........
5,000,000
5,121,062
Tohoqua
Community
Development
District
,
Phase
2
,
Special
Assessment
,
2021
,
4
%
,
5/01/51
......................................................
1,175,000
954,126
Touchstone
Community
Development
District
,
Special
Assessment,
Senior
Lien
,
2022
A-1
,
5.5
%
,
5/01/53
.................................................
1,800,000
1,833,497
Town
of
Palm
Beach
,
GO
,
2018
,
4
%
,
7/01/43
..............................
5,000,000
4,980,618
University
of
North
Florida
Financing
Corp.
(The)
,
University
of
North
Florida
Dormitory
Facilities
,
Revenue
,
2016
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/35
............
5,000,000
5,176,749
g
Village
Community
Development
District
No.
15
,
Phase
I
,
Special
Assessment
,
144A,
2023
,
5
%
,
5/01/43
.....................
1,500,000
1,525,479
Phase
I
,
Special
Assessment
,
144A,
2023
,
5.25
%
,
5/01/54
...................
6,075,000
6,209,612
Volusia
County
Educational
Facility
Authority
,
Embry-Riddle
Aeronautical
University,
Inc.
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/15/47
5,000,000
5,094,908
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Volusia
County
Educational
Facility
Authority,
(continued)
Embry-Riddle
Aeronautical
University,
Inc.
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/15/49
.......................................................
$
3,000,000
$
3,085,552
Wildwood
Utility
Dependent
District
,
Revenue
,
2023
,
AGMC
Insured
,
5.5
%
,
10/01/53
.
6,970,000
7,593,080
850,548,226
Georgia
4.2%
Atlanta
Development
Authority
(The)
,
City
of
Atlanta
Hotel
Motel
Tax
,
Revenue
,
2015
A-1
,
5.25
%
,
7/01/44
............
3,000,000
3,036,858
Tuff
Yamacraw
LLC
,
Revenue
,
2005
A
,
Refunding
,
AMBAC
Insured
,
5
%
,
1/01/25
..
6,955,000
6,976,766
Tuff
Yamacraw
LLC
,
Revenue
,
2005
A
,
Refunding
,
AMBAC
Insured
,
5
%
,
1/01/26
..
5,000,000
5,058,817
Tuff
Yamacraw
LLC
,
Revenue
,
2005
A
,
Refunding
,
AMBAC
Insured
,
5
%
,
1/01/27
..
5,000,000
5,114,665
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
15,040,000
14,179,679
City
of
Atlanta
,
Airport
Passenger
Facility
Charge
,
Revenue
,
2023
E
,
5.25
%
,
7/01/43
...........
4,250,000
4,585,608
Airport
Passenger
Facility
Charge
,
Revenue,
Sub.
Lien
,
2019
D
,
4
%
,
7/01/36
.....
15,800,000
15,694,625
Water
&
Wastewater
,
Revenue
,
2015
,
Refunding
,
5
%
,
11/01/40
...............
29,500,000
29,774,279
Water
&
Wastewater
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
11/01/40
..............
4,655,000
4,848,826
Water
&
Wastewater
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
11/01/47
..............
4,845,000
4,991,481
Columbia
County
Hospital
Authority
,
WellStar
Health
System
Obligated
Group
,
Revenue
,
2023
A
,
5.125
%
,
4/01/53
....................................
1,875,000
1,955,883
Coweta
County
Development
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/01/44
...............................
10,000,000
10,226,689
Development
Authority
for
Fulton
County
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
20,000,000
18,397,416
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.
,
Revenue
,
2017
C
,
Refunding
,
4.125
%
,
11/01/45
.......
2,500,000
2,229,786
Oglethorpe
Power
Corp.
,
Revenue
,
2017
D
,
Refunding
,
4.125
%
,
11/01/45
.......
18,500,000
16,500,416
g
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
39,080,000
31,862,397
Fayette
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
7/01/39
........................................................
6,420,000
6,425,513
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
7/01/46
......
15,000,000
15,141,068
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
5,000,000
4,725,714
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
2,250,000
2,173,670
Main
Street
Natural
Gas,
Inc.
,
Revenue
,
2007
A
,
5.5
%
,
9/15/28
......................................
5,000,000
5,215,555
f
Revenue
,
2021
C
,
Mandatory
Put
,
4
%
,
12/01/28
...........................
16,500,000
16,490,994
f
Revenue
,
2022
A
,
Mandatory
Put
,
4
%
,
12/01/29
...........................
14,500,000
14,411,842
f,g
Revenue
,
144A,
2022
C
,
Mandatory
Put
,
4
%
,
11/01/27
......................
49,155,000
47,729,603
f
Revenue
,
2023
D
,
Mandatory
Put
,
5
%
,
12/01/30
...........................
33,595,000
34,801,860
f
Revenue
,
2023
E-1
,
Mandatory
Put
,
5
%
,
6/01/31
..........................
20,000,000
21,132,292
Municipal
Electric
Authority
of
Georgia
,
Revenue
,
2021
A
,
Refunding
,
5
%
,
1/01/63
...............................
7,920,000
7,945,628
Revenue
,
2022
A
,
5.5
%
,
7/01/63
......................................
2,500,000
2,594,226
Revenue
,
2023
A
,
5.5
%
,
7/01/64
......................................
5,000,000
5,197,755
Private
Colleges
&
Universities
Authority
,
Emory
University
,
Revenue
,
2013
A
,
5
%
,
10/01/43
........................................................
10,000,000
9,850,539
369,270,450
Hawaii
1.1%
City
&
County
Honolulu
,
Wastewater
System
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
7/01/47
.........................................................
15,000,000
15,504,804
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Hawaii
(continued)
State
of
Hawaii
,
Airports
System
,
Revenue
,
2018
A
,
5
%
,
7/01/43
...........................
$
20,805,000
$
21,208,935
Airports
System
,
Revenue
,
2018
A
,
5
%
,
7/01/48
...........................
21,315,000
21,576,659
Airports
System
,
Revenue
,
2022
A
,
4
%
,
7/01/47
...........................
10,000,000
9,158,242
Airports
System
,
Revenue
,
2022
A
,
5
%
,
7/01/47
...........................
13,200,000
13,697,288
Department
of
Budget
&
Finance
,
Revenue
,
2019
,
Refunding
,
3.2
%
,
7/01/39
.....
10,000,000
6,435,410
Department
of
Budget
&
Finance
,
Revenue
,
2019
,
3.5
%
,
10/01/49
.............
17,035,000
10,611,001
98,192,339
Idaho
0.2%
Idaho
Health
Facilities
Authority
,
St.
Luke's
Health
System
Ltd.
Obligated
Group
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
3/01/37
........................................................
7,750,000
7,958,551
Trinity
Health
Corp.
Obligated
Group
,
Revenue
,
2019
ID
,
4
%
,
12/01/43
.........
6,000,000
5,758,791
Idaho
Housing
&
Finance
Association
,
White
Pine
Charter
School,
Inc.
,
Revenue
,
2023
A
,
5.5
%
,
5/01/43
.............
350,000
370,336
White
Pine
Charter
School,
Inc.
,
Revenue
,
2023
A
,
5.75
%
,
5/01/48
.............
525,000
557,534
White
Pine
Charter
School,
Inc.
,
Revenue
,
2023
A
,
5.75
%
,
5/01/58
.............
1,000,000
1,048,486
15,693,698
Illinois
5.7%
Chicago
Board
of
Education
,
Dedicated
Capital
Improvement
Tax
,
Revenue
,
2023
,
5.75
%
,
4/01/48
...................................................
20,000,000
21,925,962
Chicago
Midway
International
Airport
,
Revenue,
Second
Lien
,
2016
B
,
Refunding
,
5
%
,
1/01/46
....................
10,000,000
10,069,436
Revenue,
Senior
Lien
,
2023
A
,
Refunding
,
BAM
Insured
,
5.5
%
,
1/01/53
.........
6,000,000
6,429,528
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien
,
2016
D
,
5.25
%
,
1/01/42
............................
10,000,000
10,299,086
Revenue,
Senior
Lien
,
2016
D
,
5
%
,
1/01/47
..............................
18,000,000
18,283,986
Revenue,
Senior
Lien
,
2017
D
,
Refunding
,
5
%
,
1/01/52
.....................
6,335,000
6,346,691
Revenue,
Senior
Lien
,
2018
A
,
Refunding
,
5
%
,
1/01/53
.....................
10,000,000
10,081,027
Revenue,
Senior
Lien
,
2022
A
,
5
%
,
1/01/55
..............................
36,500,000
37,072,386
Chicago
Park
District
,
GO
,
2020
C
,
BAM
Insured
,
4
%
,
1/01/41
.................................
1,400,000
1,350,601
GO
,
2020
C
,
BAM
Insured
,
4
%
,
1/01/42
.................................
4,300,000
4,078,327
GO
,
2020
D
,
BAM
Insured
,
4
%
,
1/01/37
.................................
1,000,000
1,004,474
GO
,
2020
D
,
BAM
Insured
,
4
%
,
1/01/38
.................................
1,000,000
996,519
GO
,
2020
D
,
BAM
Insured
,
4
%
,
1/01/39
.................................
1,000,000
983,785
Chicago
Transit
Authority
Sales
Tax
Receipts
Fund
,
Revenue,
Second
Lien
,
2022
A
,
Refunding
,
5
%
,
12/01/57
............................................
15,000,000
15,310,039
City
of
Chicago
,
GO
,
2023
A
,
5.5
%
,
1/01/39
...........................................
1,050,000
1,141,276
GO
,
2023
A
,
5.5
%
,
1/01/40
...........................................
1,300,000
1,405,373
City
of
Galesburg
,
Knox
College
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
10/01/46
......
7,000,000
5,799,881
City
of
Granite
City
,
Waste
Management
of
Illinois,
Inc.
,
Revenue
,
2002
,
1.25
%
,
5/01/27
.........................................................
5,750,000
5,222,409
Illinois
Finance
Authority
,
Bradley
University
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
8/01/46
................
2,250,000
1,972,374
Bradley
University
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
8/01/51
................
4,650,000
3,911,625
Christian
Homes,
Inc.
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
5/15/41
.........
3,480,000
1,479,000
Christian
Homes,
Inc.
Obligated
Group
,
Revenue
,
2021
B
,
Refunding
,
3.25
%
,
5/15/27
........................................................
1,845,000
784,125
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
11/01/41
..............................
750,000
660,946
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
11/01/51
..............................
1,000,000
806,444
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
Illinois
Finance
Authority,
(continued)
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
11/01/56
..............................
$
750,000
$
588,785
Mercy
Health
Corp.
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
12/01/46
...
30,000,000
30,172,368
Illinois
Housing
Development
Authority
,
Revenue
,
2022
G
,
GNMA
Insured
,
5
%
,
10/01/46
........................................................
3,500,000
3,569,226
Macon
County
School
District
No.
61
Decatur
,
GO
,
2020
C
,
Refunding
,
AGMC
Insured
,
4
%
,
1/01/40
.......................
3,700,000
3,632,542
GO
,
2020
C
,
Refunding
,
AGMC
Insured
,
4
%
,
1/01/45
.......................
3,125,000
2,931,802
Metropolitan
Pier
&
Exposition
Authority
,
Revenue
,
1996
,
ETM,
7
%
,
7/01/26
.....................................
4,835,000
5,001,422
Revenue
,
2002
A
,
NATL
Insured
,
Zero
Cpn.,
12/15/37
......................
10,000,000
5,573,808
Revenue
,
2020
A
,
Refunding
,
5
%
,
6/15/50
...............................
8,500,000
8,674,113
Revenue
,
2022
A
,
Refunding
,
4
%
,
12/15/47
..............................
365,000
330,267
Revenue
,
2022
A
,
Refunding
,
4
%
,
6/15/52
...............................
36,000,000
31,617,047
Southwestern
Illinois
Development
Authority
,
Madison
County
Community
Unit
School
District
No.
7
Edwardsville
,
Revenue
,
2007
,
AGMC
Insured
,
Zero
Cpn.,
12/01/24
..................................
1,370,000
1,335,407
Madison
County
Community
Unit
School
District
No.
7
Edwardsville
,
Revenue
,
2007
,
AGMC
Insured
,
ETM,
Zero
Cpn.,
12/01/24
.............................
2,480,000
2,424,262
Madison
County
Community
Unit
School
District
No.
7
Edwardsville
,
Revenue
,
2007
,
AGMC
Insured
,
Zero
Cpn.,
12/01/26
..................................
2,465,000
2,219,631
Madison
County
Community
Unit
School
District
No.
7
Edwardsville
,
Revenue
,
2007
,
AGMC
Insured
,
ETM,
Zero
Cpn.,
12/01/26
.............................
5,235,000
4,778,796
State
of
Illinois
,
GO
,
2016
,
5
%
,
11/01/35
.............................................
1,000,000
1,020,422
GO
,
2017
A
,
5
%
,
12/01/36
...........................................
6,070,000
6,289,457
GO
,
2017
A
,
4.25
%
,
12/01/40
.........................................
3,150,000
3,010,292
GO
,
2017
D
,
5
%
,
11/01/28
...........................................
6,425,000
6,707,507
GO
,
2019
A
,
5
%
,
11/01/28
...........................................
10,000,000
10,602,082
GO
,
2019
B
,
4
%
,
11/01/34
...........................................
2,600,000
2,601,009
GO
,
2019
C
,
4
%
,
11/01/40
...........................................
2,500,000
2,364,134
GO
,
2020
,
5.75
%
,
5/01/45
...........................................
7,965,000
8,565,786
GO
,
2020
C
,
4
%
,
10/01/38
...........................................
9,750,000
9,512,320
GO
,
2020
C
,
4
%
,
10/01/39
...........................................
4,585,000
4,402,528
GO
,
2021
A
,
4
%
,
3/01/38
............................................
5,000,000
4,893,473
GO
,
2021
B
,
5
%
,
3/01/25
............................................
4,500,000
4,539,801
GO
,
2022
B
,
5
%
,
10/01/30
...........................................
14,650,000
15,901,526
GO
,
2022
B
,
5
%
,
10/01/31
...........................................
26,500,000
29,059,492
GO
,
2022
C
,
5
%
,
10/01/38
...........................................
15,000,000
16,154,064
GO
,
2022
C
,
5.5
%
,
10/01/40
.........................................
18,050,000
19,910,175
GO
,
2022
C
,
5.5
%
,
10/01/41
.........................................
10,000,000
10,971,406
GO
,
2022
C
,
5.5
%
,
10/01/44
.........................................
16,000,000
17,313,746
GO
,
2023
B
,
5.5
%
,
5/01/47
..........................................
2,500,000
2,673,000
Sales
Tax
,
Revenue
,
2016
C
,
Refunding
,
4
%
,
6/15/26
......................
5,000,000
5,040,300
Tri-County
River
Valley
Development
Authority
,
Cedars
of
Lebanon
Affordable
LLC
,
Revenue
,
2021
A
,
Pre-Refunded
,
3.75
%
,
12/01/36
.......................................................
9,970,000
10,180,313
Cedars
of
Lebanon
Affordable
LLC
,
Revenue
,
2021
B
,
Pre-Refunded
,
5.75
%
,
12/01/36
.......................................................
780,000
771,758
g
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group
,
Revenue
,
144A,
2020
A
,
Refunding
,
4
%
,
12/01/40
...........................................
7,565,000
6,245,027
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group
,
Revenue
,
144A,
2020
A
,
Refunding
,
4.5
%
,
12/01/50
.........................................
34,795,000
27,217,282
496,211,676
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Indiana
2.5%
City
of
Whiting
,
BP
Products
North
America,
Inc.
,
Revenue
,
2021
,
3
%
,
11/01/51
.....
$
10,000,000
$
7,454,116
Hammond
Multi-School
Building
Corp.
,
Hammond
School
City
,
Revenue
,
2018
,
5
%
,
7/15/38
.........................................................
3,000,000
3,089,961
Indiana
Finance
Authority
,
BHI
Senior
Living
Obligated
Group
,
Revenue
,
2016
A
,
5.25
%
,
11/15/46
.........
11,955,000
12,042,074
BHI
Senior
Living
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/53
............
15,000,000
14,549,407
BHI
Senior
Living
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
11/15/41
...
7,250,000
6,448,752
CHF
-
Tippecanoe
LLC
,
Revenue
,
2023
A
,
5
%
,
6/01/53
.....................
2,300,000
2,317,871
CHF
-
Tippecanoe
LLC
,
Revenue
,
2023
A
,
5.125
%
,
6/01/58
..................
1,650,000
1,665,742
CHF
-
Tippecanoe
LLC
,
Revenue
,
2023
A
,
5.375
%
,
6/01/64
..................
6,010,000
6,131,969
Citizens
Wastewater
of
Westfield
LLC
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
10/01/48
16,665,000
17,210,679
CWA
Authority,
Inc.
,
Revenue,
First
Lien
,
2012
A
,
4
%
,
10/01/42
...............
24,690,000
23,961,949
Greencroft
Goshen
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
11/15/43
..
7,000,000
5,870,710
Greencroft
Goshen
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
11/15/51
..
3,000,000
2,319,671
Greencroft
Goshen
Obligated
Group
,
Revenue
,
2023
A
,
Refunding
,
4
%
,
11/15/37
..
5,000,000
4,567,740
Indianapolis
Power
&
Light
Co.
,
Revenue
,
2021
A
,
Refunding
,
1.4
%
,
8/01/29
.....
5,000,000
4,203,067
Marion
County
Capital
Improvement
Board
,
Revenue
,
2015
A
,
Refunding
,
5.25
%
,
2/01/37
........................................................
10,000,000
10,157,966
Ohio
Valley
Electric
Corp.
,
Revenue
,
2010
B
,
2.5
%
,
11/01/30
.................
3,925,000
3,491,740
University
of
Evansville
,
Revenue
,
2022
A
,
Refunding
,
5.25
%
,
9/01/57
..........
10,000,000
9,202,306
Indiana
Municipal
Power
Agency
,
Revenue
,
2016
A
,
Refunding
,
4
%
,
1/01/42
...............................
5,860,000
5,790,800
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/42
...............................
20,000,000
20,272,566
Indiana
University
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
6/01/45
..................
6,500,000
6,336,207
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue
,
2017
C
,
Refunding
,
5
%
,
1/01/40
...............................
10,000,000
10,420,516
Revenue
,
2019
A
,
4
%
,
2/01/44
........................................
3,000,000
2,946,554
Revenue
,
2019
A
,
5
%
,
2/01/49
........................................
30,000,000
31,055,013
Revenue,
Senior
Lien
,
2023
E
,
6.125
%
,
3/01/57
...........................
2,750,000
2,982,263
214,489,639
Iowa
0.9%
Iowa
Finance
Authority
,
Iowa
Fertilizer
Co.
LLC
,
Revenue
,
2022
,
Refunding
,
5
%
,
12/01/50
.............
9,650,000
10,052,737
Iowa
Health
System
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
2/15/48
..
7,500,000
7,642,213
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
5/15/36
....
1,400,000
1,361,733
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
5/15/41
....
3,600,000
3,327,516
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
5/15/48
....
3,225,000
2,824,632
f
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2021
B
,
Refunding
,
Mandatory
Put
,
4.274
%
,
5/15/26
.....................................
8,250,000
7,708,415
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2023
B
,
Refunding
,
6.75
%
,
5/15/33
........................................................
2,000,000
2,191,298
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2023
B
,
Refunding
,
7.25
%
,
5/15/38
........................................................
2,750,000
3,067,322
Lifespace
Communities,
Inc.
Obligated
Group
,
Revenue
,
2023
B
,
Refunding
,
7.5
%
,
5/15/53
........................................................
4,120,000
4,493,492
Iowa
Tobacco
Settlement
Authority
,
Revenue
,
2021
A-2
,
1
,
Refunding
,
4
%
,
6/01/49
............................
20,730,000
18,495,300
Revenue
,
2021
B-1
,
2
,
Refunding
,
4
%
,
6/01/49
...........................
21,765,000
21,448,404
82,613,062
Kansas
0.3%
Wyandotte
County-Kansas
City
Unified
Government
,
Utility
System
,
Revenue
,
2016
C
,
Refunding
,
5
%
,
9/01/41
...................
5,000,000
5,070,195
Utility
System
,
Revenue
,
2016
C
,
Refunding
,
5
%
,
9/01/46
...................
16,565,000
16,764,587
21,834,782
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Kentucky
1.4%
City
of
Hazard
,
Appalachian
Regional
Healthcare
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
3
%
,
7/01/46
.............................................
$
2,000,000
$
1,486,142
City
of
Owensboro
,
Water
,
Revenue
,
2018
,
Refunding
,
BAM
Insured
,
4
%
,
9/15/45
...
5,000,000
4,796,435
County
of
Boyle
,
Centre
College
of
Kentucky
,
Revenue
,
2017
,
Pre-Refunded
,
5
%
,
6/01/37
.........................................................
2,000,000
2,059,784
County
of
Carroll
,
Kentucky
Utilities
Co.
,
Revenue
,
2008
A
,
Refunding
,
2
%
,
2/01/32
..............
3,000,000
2,422,888
f
Kentucky
Utilities
Co.
,
Revenue
,
2016
A
,
Refunding
,
Mandatory
Put
,
1.55
%
,
9/01/26
2,000,000
1,842,574
County
of
Warren
,
Bowling
Green-Warren
County
Community
Hospital
Corp.
,
Revenue
,
2012
A
,
5
%
,
10/01/33
...............................................
1,000,000
1,000,513
Fayette
County
School
District
Finance
Corp.
,
Fayette
County
School
District
,
Revenue
,
2015
D
,
5
%
,
8/01/34
........................................
1,985,000
2,002,904
Hopkins
County
School
District
Finance
Corp.
,
Revenue
,
2021
,
2
%
,
2/01/41
.......
2,340,000
1,543,101
Kentucky
Bond
Development
Corp.
,
Revenue
,
2018
A
,
5
%
,
9/01/48
........................................
2,500,000
2,555,337
Centre
College
of
Kentucky
,
Revenue
,
2021
,
4
%
,
6/01/51
....................
1,350,000
1,193,403
Transylvania
University
,
Revenue
,
2019
B
,
4
%
,
3/01/49
.....................
2,500,000
2,117,551
Transylvania
University
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
3/01/46
.............
735,000
638,537
Transylvania
University
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
3/01/49
.............
330,000
279,517
Kentucky
Economic
Development
Finance
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-2
,
Refunding
,
5
%
,
8/01/49
........................
21,200,000
21,679,707
Kentucky
Municipal
Power
Agency
,
Revenue
,
2015
A
,
Refunding
,
NATL
Insured
,
5
%
,
9/01/42
....................
10,000,000
9,902,096
Revenue
,
2016
A
,
Refunding
,
NATL
Insured
,
5
%
,
9/01/35
....................
7,750,000
7,792,206
Revenue
,
2016
A
,
Refunding
,
NATL
Insured
,
5
%
,
9/01/36
....................
8,015,000
8,037,612
Revenue
,
2019
A
,
Refunding
,
4
%
,
9/01/45
...............................
2,000,000
1,740,168
f
Kentucky
Public
Energy
Authority
,
Revenue
,
2022
A-2
,
Mandatory
Put
,
4.764
%
,
(
SOFR
+
1.2
%
),
8/01/30
..................................................
5,000,000
4,890,285
Kentucky
Rural
Water
Finance
Corp.
,
Revenue
,
2001
A
,
5
%
,
2/01/26
.............
55,000
55,056
Kentucky
State
Property
&
Building
Commission
,
Kentucky
Finance
and
Administration
Cabinet
,
Revenue
,
5
%
,
4/01/38
.......................................
2,500,000
2,591,038
Kentucky
Turnpike
Authority
,
Kentucky
Transportation
Cabinet
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
7/01/33
.............................................
3,000,000
3,033,395
Lewis
County
School
District
Finance
Corp.
,
Revenue
,
2021
,
2
%
,
2/01/41
.........
2,000,000
1,290,019
Louisville
and
Jefferson
County
,
Metropolitan
Sewer
District
,
Revenue
,
2017
A
,
4
%
,
5/15/48
..................
2,750,000
2,555,516
Metropolitan
Sewer
District
,
Revenue
,
2018
A
,
Refunding
,
4
%
,
5/15/38
..........
5,000,000
4,924,000
Louisville/Jefferson
County
Metropolitan
Government
,
Bellarmine
University,
Inc.
,
Revenue
,
2015
,
Refunding
,
5
%
,
5/01/31
............
2,000,000
1,909,038
Bellarmine
University,
Inc.
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
5/01/36
..........
2,715,000
2,474,286
Louisville
Gas
and
Electric
Co.
,
Revenue
,
2003
A
,
Refunding
,
2
%
,
10/01/33
......
4,000,000
3,148,268
Morehead
State
University
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
10/01/28
...........
1,910,000
1,911,341
Paducah
Electric
Plant
Board
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/34
........................................................
5,700,000
5,839,545
Scott
County
School
District
Finance
Corp.
,
Scott
County
Board
of
Education
,
Revenue
,
2018
,
4
%
,
6/01/38
.........................................
1,615,000
1,610,283
Shelby
County
School
District
Finance
Corp.
,
Shelby
County
Public
School
District
,
Revenue
,
2018
,
4
%
,
8/01/38
.........................................
3,465,000
3,391,045
University
of
Kentucky
,
Revenue
,
2014
A
,
4
%
,
4/01/44
........................................
2,250,000
2,130,654
Revenue
,
2018
A
,
4
%
,
10/01/32
.......................................
3,250,000
3,264,890
University
of
Louisville
,
Revenue
,
2016
D
,
5
%
,
3/01/30
.......................
4,140,000
4,266,297
122,375,431
Louisiana
2.4%
City
of
Shreveport
,
Water
&
Sewer
,
Revenue
,
2016
B
,
5
%
,
12/01/41
..........................
10,000,000
10,092,940
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
City
of
Shreveport,
(continued)
Water
&
Sewer
,
Revenue,
Junior
Lien
,
2019
B
,
AGMC
Insured
,
4
%
,
12/01/44
.....
$
6,535,000
$
6,261,280
Lafayette
Consolidated
Government
,
Revenue
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/30
........................................................
5,000,000
5,077,229
g
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
City
of
New
Orleans
,
Revenue
,
144A,
2021
,
4
%
,
11/01/46
...................
9,400,000
8,324,877
Parish
of
Assumption
,
Revenue
,
144A,
2021
,
3.875
%
,
11/01/45
...............
4,880,000
4,255,047
Parish
of
St.
Bernard
,
Revenue
,
144A,
2021
,
4
%
,
11/01/45
...................
2,000,000
1,777,049
Parish
of
St.
Charles
,
Revenue
,
144A,
2022
,
4.5
%
,
11/01/47
.................
9,455,000
9,135,485
Parish
of
St.
John
the
Baptist
,
Revenue
,
144A,
2019
,
3.9
%
,
11/01/44
...........
2,110,000
1,853,965
Parish
of
St.
Tammany
LA
GOMESA
,
Revenue
,
144A,
2020
,
3.875
%
,
11/01/45
....
5,820,000
5,074,666
Patriot
Services
Group
Obligated
Group
,
Revenue
,
144A,
2021
A
,
4
%
,
10/01/43
...
3,877,088
2,974,165
Patriot
Services
Group
Obligated
Group
,
Revenue
,
144A,
2021
A
,
4.25
%
,
10/01/48
6,350,000
4,735,762
Patriot
Services
Group
Obligated
Group
,
Revenue
,
144A,
2021
A
,
4.5
%
,
10/01/53
.
8,000,000
5,971,333
Patriot
Services
Group
Obligated
Group
,
Revenue
,
144A,
2021
A
,
5
%
,
10/01/61
...
10,000,000
7,873,377
Louisiana
Public
Facilities
Authority
,
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
7/01/47
..............................................
10,000,000
10,066,147
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary
,
Revenue
,
2016
A
,
5
%
,
7/01/51
..............................................
9,000,000
9,022,706
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary
,
Revenue
,
2016
A
,
5
%
,
7/01/56
..............................................
17,595,000
17,610,784
Ochsner
Clinic
Foundation
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
5/15/46
27,500,000
27,838,973
Ochsner
Clinic
Foundation
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
AGMC
Insured
,
3
%
,
5/15/47
..............................................
9,925,000
7,618,219
g
Provident
Group
-
HSC
Properties,
Inc.
,
Revenue
,
144A,
2020
A-1
,
5.375
%
,
1/01/40
2,500,000
2,444,184
g
Provident
Group
-
HSC
Properties,
Inc.
,
Revenue
,
144A,
2020
A-1
,
5.5
%
,
1/01/50
.
14,000,000
13,280,739
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017
B
,
5
%
,
1/01/48
........................................
9,675,000
9,712,506
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
MovEBR
Sales
Tax
,
Revenue
,
2019
,
4
%
,
8/01/44
.........................................
6,000,000
5,882,225
f
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B-2
,
Refunding
,
Mandatory
Put
,
2.375
%
,
7/01/26
......................................
7,500,000
7,170,176
Port
New
Orleans
Board
of
Commissioners
,
Revenue
,
2020
E
,
5
%
,
4/01/44
........................................
8,110,000
8,289,287
Revenue
,
2020
E
,
5
%
,
4/01/47
........................................
10,000,000
10,152,851
Terrebonne
Levee
&
Conservation
District
,
Sales
Tax
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
6/01/40
......................................................
5,065,000
4,984,518
207,480,490
Maryland
1.4%
City
of
Baltimore
,
Wastewater
Utility
Fund
,
Revenue
,
2014
C
,
5
%
,
7/01/39
.....................
10,000,000
10,055,949
Wastewater
Utility
Fund
,
Revenue
,
2014
C
,
5
%
,
7/01/44
.....................
10,000,000
10,036,125
Water
Utility
Fund
,
Revenue
,
2014
A
,
5
%
,
7/01/39
.........................
9,430,000
9,482,760
Water
Utility
Fund
,
Revenue
,
2014
A
,
5
%
,
7/01/44
.........................
5,500,000
5,519,869
Maryland
Economic
Development
Corp.
,
Morgan
View
&
Thurgood
Marshall
Student
Housing
,
Revenue
,
2020
,
4.25
%
,
7/01/50
1,000,000
880,350
Morgan
View
&
Thurgood
Marshall
Student
Housing
,
Revenue
,
2020
,
5
%
,
7/01/56
.
1,415,000
1,400,944
Purple
Line
Transit
Partners
LLC
,
Revenue
,
2022
A
,
5
%
,
11/12/28
.............
10,000,000
10,166,997
Purple
Line
Transit
Partners
LLC
,
Revenue
,
2022
B
,
5.25
%
,
6/30/52
...........
10,000,000
10,271,344
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group
,
Revenue
,
2016
A
,
5.5
%
,
1/01/46
.........
12,500,000
12,573,301
Adventist
Healthcare
Obligated
Group
,
Revenue
,
2021
B
,
4
%
,
1/01/51
..........
23,000,000
18,636,097
MedStar
Health
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
5
%
,
8/15/42
.......
13,285,000
13,360,431
MedStar
Health
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
5/15/45
..............
15,465,000
15,726,167
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
(continued)
Town
of
Chestertown
,
Washington
College
,
Revenue
,
2021
A
,
Refunding
,
5
%
,
3/01/33
...............
$
3,205,000
$
3,283,416
Washington
College
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
3/01/35
...............
3,455,000
3,249,271
124,643,021
Massachusetts
1.9%
Commonwealth
of
Massachusetts
,
GO
,
2016
G
,
4
%
,
9/01/42
............................................
20,000,000
19,637,004
GO
,
2018
E
,
5.25
%
,
9/01/43
.........................................
10,000,000
10,588,980
Transportation
Fund
,
Revenue
,
2017
A
,
5
%
,
6/01/47
.......................
25,055,000
25,726,918
Transportation
Fund
,
Revenue
,
2018
A
,
5
%
,
6/01/48
.......................
15,000,000
15,490,374
Massachusetts
Bay
Transportation
Authority
,
Sales
Tax
,
Revenue
,
2005
A
,
5
%
,
7/01/28
10,000,000
10,843,431
Massachusetts
Clean
Water
Trust
(The)
,
Revenue
,
1999
A
,
5.75
%
,
8/01/29
.....................................
450,000
454,464
Revenue
,
2002
A
,
5
%
,
8/01/32
........................................
225,000
225,000
Massachusetts
Development
Finance
Agency
,
Mass
General
Brigham,
Inc.
,
Revenue
,
2017
S-1
,
Refunding
,
4
%
,
7/01/41
.......
15,415,000
14,916,275
Springfield
College
,
Revenue
,
2021
A
,
4
%
,
6/01/56
........................
3,000,000
2,392,706
g
Waste
Management
of
Massachusetts,
Inc.
,
Revenue
,
144A,
2002
,
1.25
%
,
5/01/27
3,250,000
2,951,796
Worcester
Polytechnic
Institute
,
Revenue
,
2019
,
5
%
,
9/01/59
.................
10,000,000
10,328,543
Massachusetts
Educational
Financing
Authority
,
Revenue
,
2017
B
,
Refunding
,
4.25
%
,
7/01/46
.............................
2,000,000
1,803,267
Revenue
,
2021
C
,
3
%
,
7/01/51
........................................
3,200,000
2,091,007
Revenue,
Senior
Lien
,
2023
B
,
4.25
%
,
7/01/44
............................
4,500,000
4,351,027
Massachusetts
Port
Authority
,
Revenue
,
2021
E
,
5
%
,
7/01/51
........................................
24,870,000
25,465,995
Bosfuel
Corp.
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/01/49
....................
7,500,000
7,618,125
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien
,
2014-1
,
5
%
,
11/01/39
........................................................
8,185,000
8,217,337
163,102,249
Michigan
0.6%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System
,
Revenue,
Second
Lien
,
2006
B
,
NATL
Insured
,
5
%
,
7/01/36
.......................................
10,000
10,009
Great
Lakes
Water
Authority
Water
Supply
System
,
Revenue,
Senior
Lien
,
2003
A
,
NATL
Insured
,
5
%
,
7/01/34
.........................................
10,000
10,010
Michigan
Finance
Authority
,
Tobacco
Settlement
,
Revenue,
Senior
Lien
,
2020
A
,
1
,
Refunding
,
4
%
,
6/01/36
...
1,000,000
1,009,201
Tobacco
Settlement
,
Revenue,
Senior
Lien
,
2020
A
,
1
,
Refunding
,
4
%
,
6/01/37
...
2,000,000
2,002,242
Tobacco
Settlement
,
Revenue,
Senior
Lien
,
2020
A
,
1
,
Refunding
,
4
%
,
6/01/38
...
1,500,000
1,485,617
Tobacco
Settlement
,
Revenue,
Senior
Lien
,
2020
A
,
1
,
Refunding
,
4
%
,
6/01/39
...
250,000
245,545
Tobacco
Settlement
,
Revenue,
Senior
Lien
,
2020
A
,
1
,
Refunding
,
4
%
,
6/01/40
...
2,250,000
2,200,284
Tobacco
Settlement
,
Revenue,
Senior
Lien
,
2020
A
,
1
,
Refunding
,
4
%
,
6/01/49
...
4,000,000
3,573,660
Tobacco
Settlement
,
Revenue,
Senior
Lien
,
2020
B-1
,
2
,
Refunding
,
5
%
,
6/01/49
..
2,565,000
2,618,210
Michigan
State
Housing
Development
Authority
,
Revenue
,
2023
B
,
Refunding
,
5
%
,
6/01/54
.........................................................
3,500,000
3,533,307
Michigan
Strategic
Fund
,
State
of
Michigan
Department
of
Transportation
,
Revenue
,
2018
,
5
%
,
6/30/48
....
12,415,000
12,429,254
United
Methodist
Retirement
Communities,
Inc.
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
11/15/49
...........................................
7,000,000
5,875,015
Pontiac
School
District
,
GO
,
2020
,
4
%
,
5/01/50
.............................
8,665,000
8,167,971
Wayne
County
Airport
Authority
,
Detroit
Metropolitan
Wayne
County
Airport
,
Revenue
,
2023
B
,
AGMC
Insured
,
5.5
%
,
12/01/48
.................................
5,000,000
5,438,038
48,598,363
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Mississippi
0.9%
Medical
Center
Educational
Building
Corp.
,
Mississippi
State
Institutions
of
Higher
Learning
,
Revenue
,
2023
A
,
4
%
,
6/01/53
................................
$
6,000,000
$
5,557,959
Mississippi
Business
Finance
Corp.
,
System
Energy
Resources,
Inc.
,
Revenue
,
2021
,
Refunding
,
2.375
%
,
6/01/44
..........................................
7,000,000
4,217,870
Mississippi
Development
Bank
,
City
of
Jackson
Water
&
Sewer
System
,
Revenue
,
2013
,
AGMC
Insured
,
6.875
%
,
12/01/40
.......................................................
3,400,000
3,412,159
g
County
of
Jackson
,
Revenue
,
144A,
2021
,
3.625
%
,
11/01/36
.................
2,800,000
2,567,746
Mississippi
Home
Corp.
,
g
Patriot
Services
Group
Obligated
Group
,
Revenue
,
144A,
2021
A-5
,
3.5
%
,
6/01/33
584,263
493,689
g
Patriot
Services
Group
Obligated
Group
,
Revenue
,
144A,
2021
A-5
,
4
%
,
6/01/46
..
1,000,000
739,647
g
Patriot
Services
Group
Obligated
Group
,
Revenue
,
144A,
2021
A-5
,
4.5
%
,
6/01/62
.
17,965,177
13,180,490
g
Patriot
Services
Group
Obligated
Group
,
Revenue
,
144A,
2021
B-5
,
5.2
%
,
6/01/36
5,600,000
4,231,712
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group
,
Revenue
,
2021
D-8
,
4.15
%
,
6/01/46
..................................................
3,464,038
2,624,796
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group
,
Revenue
,
2021
D-8
,
4.65
%
,
6/01/62
..................................................
5,381,952
4,064,166
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
9/01/36
...
6,350,000
6,429,884
Baptist
Memorial
Health
Care
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
9/01/46
...
30,000,000
29,806,329
77,326,447
Missouri
0.6%
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
BJC
Healthcare
Obligated
Group
,
Revenue
,
2015
A
,
4
%
,
1/01/45
..............
20,005,000
19,101,972
Lutheran
Senior
Services
Obligated
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
2/01/46
........................................................
4,000,000
3,875,956
Mercy
Health
,
Revenue
,
2023
,
5
%
,
12/01/52
.............................
5,000,000
5,238,591
Kansas
City
Industrial
Development
Authority
,
City
of
Kansas
City
Airport
,
Revenue
,
2019
B
,
AGMC
Insured
,
5
%
,
3/01/49
...................................
20,000,000
20,296,754
St.
Louis
Municipal
Finance
Corp.
,
City
of
St.
Louis
,
Revenue
,
2020
,
AGMC
Insured
,
5
%
,
10/01/45
.....................................................
5,000,000
5,198,630
53,711,903
Montana
0.2%
Montana
Facility
Finance
Authority
,
Billings
Clinic
Obligated
Group
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
8/15/48
.......
10,000,000
10,184,573
Kalispell
Regional
Medical
Center
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
7/01/43
....................................................
6,440,000
6,480,285
16,664,858
Nebraska
0.6%
f
Central
Plains
Energy
Project
,
Revenue
,
2022-1
,
Mandatory
Put
,
5
%
,
10/01/29
.....
15,000,000
15,660,839
Gretna
Public
Schools
,
GO
,
2022
,
4
%
,
12/15/47
............................
12,935,000
12,461,426
Omaha
Public
Power
District
Nebraska
City
Station
Unit
2
,
Revenue
,
2015
A
,
Refunding
,
5.25
%
,
2/01/42
.............................
10,000,000
10,049,268
Revenue
,
2016
A
,
Refunding
,
5
%
,
2/01/49
...............................
10,000,000
10,101,580
Public
Power
Generation
Agency
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/39
.......
7,340,000
7,465,837
55,738,950
Nevada
0.2%
Carson
City
,
Carson
Tahoe
Regional
Healthcare
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
9/01/47
.............................................
2,775,000
2,784,416
Las
Vegas
Convention
&
Visitors
Authority
,
County
of
Clark
&
City
of
Las
Vegas
Combined
Room
Tax
,
Revenue
,
2018
B
,
5
%
,
7/01/43
.......................
10,000,000
10,391,632
13,176,048
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
31
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Hampshire
0.2%
New
Hampshire
Business
Finance
Authority
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2023
A
,
5.25
%
,
7/01/48
.....................................
$
2,250,000
$
2,281,144
New
Hampshire
Health
and
Education
Facilities
Authority
Act
,
Elliot
Hospital
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
10/01/38
.......
4,000,000
4,062,202
University
System
of
New
Hampshire
,
Revenue
,
2015
,
Refunding
,
5
%
,
7/01/45
...
10,350,000
10,276,876
16,620,222
New
Jersey
3.1%
Camden
County
Improvement
Authority
(The)
,
KIPP
Cooper
Norcross
Obligated
Group
,
Revenue
,
2022
,
6
%
,
6/15/62
.........................................
5,075,000
5,351,127
City
of
Newark
,
Mass
Transit
Access
Tax
,
Revenue
,
2022
,
AGMC
Insured
,
6
%
,
11/15/62
........................................................
4,000,000
4,486,821
New
Jersey
Economic
Development
Authority
,
New
Jersey
Transit
Corp.
,
Revenue
,
2020
A
,
5
%
,
11/01/44
...................
15,000,000
15,554,026
New
Jersey
Transit
Corp.
,
Revenue
,
2022
A
,
5
%
,
11/01/52
...................
10,000,000
10,437,763
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey
,
Revenue
,
2016
B
,
5
%
,
9/01/36
......................................................
14,000,000
14,379,778
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue
,
2021
C
,
Refunding
,
3.25
%
,
12/01/51
...........................
2,000,000
1,413,107
Revenue,
Senior
Lien
,
2018
A
,
4
%
,
12/01/33
.............................
845,000
839,083
Revenue,
Senior
Lien
,
2020
B
,
3.5
%
,
12/01/39
............................
5,245,000
4,991,269
Revenue,
Senior
Lien
,
2023
B
,
4
%
,
12/01/44
.............................
8,000,000
7,632,053
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue
,
2009
A
,
BAM
Insured
,
Zero
Cpn.,
12/15/39
.......................
35,000,000
18,151,210
Revenue
,
2015
AA
,
5
%
,
6/15/45
.......................................
15,000,000
15,085,067
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/15/36
..............................
7,000,000
7,393,830
Revenue
,
2019
AA
,
5.25
%
,
6/15/43
....................................
5,000,000
5,194,722
Revenue
,
2020
AA
,
5
%
,
6/15/35
.......................................
3,000,000
3,281,217
Revenue
,
2020
AA
,
5
%
,
6/15/37
.......................................
5,220,000
5,644,098
Revenue
,
2020
AA
,
5
%
,
6/15/38
.......................................
1,000,000
1,075,641
Revenue
,
2020
AA
,
5
%
,
6/15/39
.......................................
4,240,000
4,538,293
Revenue
,
2020
AA
,
5
%
,
6/15/40
.......................................
2,500,000
2,663,598
Revenue
,
2020
AA
,
5
%
,
6/15/45
.......................................
20,435,000
21,345,870
Revenue
,
2020
AA
,
4
%
,
6/15/50
.......................................
39,000,000
36,188,178
Revenue
,
2021
A
,
Refunding
,
5
%
,
6/15/31
...............................
7,250,000
8,061,833
Revenue
,
2021
A
,
Refunding
,
5
%
,
6/15/33
...............................
1,250,000
1,384,468
Revenue
,
2022
BB
,
4
%
,
6/15/46
.......................................
17,000,000
16,051,378
Revenue
,
2022
CC
,
5.5
%
,
6/15/50
.....................................
2,000,000
2,172,685
New
Jersey
Turnpike
Authority
,
Revenue
,
2015
E
,
5
%
,
1/01/45
.................
11,475,000
11,526,912
Tobacco
Settlement
Financing
Corp.
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
6/01/46
....
46,290,000
46,746,554
271,590,581
New
Mexico
0.4%
City
of
Farmington
,
Public
Service
Co.
of
New
Mexico
,
Revenue
,
2016
B
,
Refunding
,
2.15
%
,
4/01/33
...................................................
21,800,000
17,472,491
New
Mexico
Hospital
Equipment
Loan
Council
,
Presbyterian
Healthcare
Services
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
8/01/46
....................................................
15,000,000
15,298,719
San
Juan
Regional
Medical
Center,
Inc.
,
Revenue
,
2020
,
Refunding
,
4
%
,
6/01/33
.
1,000,000
978,376
San
Juan
Regional
Medical
Center,
Inc.
,
Revenue
,
2020
,
Refunding
,
4
%
,
6/01/35
.
1,000,000
954,513
34,704,099
New
York
8.3%
Buffalo
&
Erie
County
Industrial
Land
Development
Corp.
,
D'Youville
College
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/01/40
......................................
2,200,000
1,877,368
City
of
New
York
,
GO
,
2002
D
,
5.5
%
,
6/01/24
..........................................
95,000
95,100
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
City
of
New
York,
(continued)
GO
,
2018
E-1
,
5
%
,
3/01/41
..........................................
$
11,355,000
$
11,865,438
GO
,
2022
D-1
,
5.5
%
,
5/01/46
.........................................
2,500,000
2,767,480
GO
,
2023
A-1
,
4
%
,
9/01/46
..........................................
6,000,000
5,786,443
Metropolitan
Transportation
Authority
,
Revenue
,
2015
A-1
,
5
%
,
11/15/40
.....................................
7,000,000
7,050,580
Revenue
,
2016
A-1
,
5.25
%
,
11/15/56
...................................
15,000,000
15,196,174
Revenue
,
2016
D
,
Refunding
,
5
%
,
11/15/31
..............................
1,180,000
1,220,330
Revenue
,
2019
A-2
,
5
%
,
11/15/45
.....................................
46,270,000
47,697,462
Revenue
,
2020
A-1
,
4
%
,
11/15/45
.....................................
10,000,000
9,199,700
Revenue
,
2020
A-1
,
5
%
,
11/15/47
.....................................
24,300,000
25,231,526
Revenue
,
2020
D
,
5
%
,
11/15/44
.......................................
35,000,000
36,725,531
Revenue
,
2020
D
,
4
%
,
11/15/50
.......................................
20,000,000
18,076,366
Revenue
,
2020
E
,
Refunding
,
4
%
,
11/15/45
..............................
905,000
842,282
Revenue
,
2021
A-1
,
4
%
,
11/15/44
.....................................
6,725,000
6,262,079
New
York
City
Industrial
Development
Agency
,
Yankee
Stadium
LLC
,
Revenue
,
2020
A
,
Refunding
,
AGMC
Insured
,
4
%
,
3/01/45
.................................
6,000,000
5,729,808
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System
,
Revenue
,
2015
HH
,
Refunding
,
5
%
,
6/15/39
...........
15,000,000
15,166,410
Water
&
Sewer
System
,
Revenue
,
2017
CC-1
,
Refunding
,
5
%
,
6/15/46
.........
32,500,000
33,088,910
Water
&
Sewer
System
,
Revenue
,
2019
DD-1
,
5.25
%
,
6/15/49
................
12,000,000
12,570,570
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured
,
Revenue
,
2016
E-1
,
5
%
,
2/01/38
......................
10,000,000
10,171,505
Future
Tax
Secured
,
Revenue
,
2017
F-1
,
5
%
,
5/01/42
......................
11,095,000
11,449,145
Future
Tax
Secured
,
Revenue
,
2018
C-2
,
5
%
,
5/01/38
......................
11,945,000
12,480,671
Future
Tax
Secured
,
Revenue
,
2018
C-3
,
4
%
,
5/01/43
......................
19,800,000
19,178,874
Future
Tax
Secured
,
Revenue
,
2020
B-1
,
4
%
,
11/01/47
.....................
10,000,000
9,499,044
New
York
Liberty
Development
Corp.
,
Revenue
,
2021
A
,
Refunding
,
3
%
,
11/15/51
..............................
10,000,000
7,289,024
Goldman
Sachs
Headquarters
LLC
,
Revenue
,
2005
,
Refunding
,
5.25
%
,
10/01/35
..
40,000,000
46,085,832
Goldman
Sachs
Headquarters
LLC
,
Revenue
,
2007
,
5.5
%
,
10/01/37
...........
24,995,000
29,127,246
New
York
State
Dormitory
Authority
,
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2015
B
,
5
%
,
2/15/40
.........
20,000,000
20,100,912
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2017
B
,
Refunding
,
5
%
,
2/15/42
24,410,000
25,212,547
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
3/15/48
5,000,000
4,780,232
State
of
New
York
Sales
Tax
,
Revenue
,
2017
A
,
5
%
,
3/15/43
.................
10,000,000
10,264,799
State
of
New
York
Sales
Tax
,
Revenue
,
2018
A
,
5
%
,
3/15/39
.................
13,270,000
13,876,962
State
of
New
York
Sales
Tax
,
Revenue
,
2018
C
,
Refunding
,
5
%
,
3/15/37
........
23,000,000
24,212,247
State
of
New
York
Sales
Tax
,
Revenue
,
2018
E
,
Refunding
,
5
%
,
3/15/44
........
16,000,000
16,636,507
State
of
New
York
Sales
Tax
,
Revenue
,
2018
E
,
Refunding
,
5
%
,
3/15/45
........
60,365,000
62,660,814
State
of
New
York
Sales
Tax
,
Revenue
,
2018
E
,
Pre-Refunded
,
5
%
,
3/15/46
......
5,000
5,395
New
York
State
Thruway
Authority
,
Revenue
,
2019
B
,
4
%
,
1/01/50
........................................
20,000,000
18,386,004
Revenue,
Junior
Lien
,
2016
A
,
5
%
,
1/01/46
..............................
9,000,000
9,069,440
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
3/15/44
7,000,000
6,787,099
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
3/15/51
12,115,000
11,373,575
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2020
A
,
4
%
,
3/15/45
........................................
36,905,000
35,825,422
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.
,
Revenue
,
2018
,
5
%
,
1/01/32
..........................
5,000,000
5,157,863
Delta
Air
Lines,
Inc.
,
Revenue
,
2018
,
5
%
,
1/01/36
..........................
5,560,000
5,689,073
Delta
Air
Lines,
Inc.
,
Revenue
,
2020
,
4
%
,
10/01/30
.........................
5,000,000
4,989,017
Delta
Air
Lines,
Inc.
,
Revenue
,
2020
,
5
%
,
10/01/40
.........................
9,360,000
9,670,528
Delta
Air
Lines,
Inc.
,
Revenue
,
2023
,
5.625
%
,
4/01/40
......................
5,000,000
5,437,007
JFK
International
Air
Terminal
LLC
,
Revenue
,
2022
,
5
%
,
12/01/33
.............
7,500,000
8,146,500
JFK
NTO
LLC
,
Revenue
,
2023
,
AGMC
Insured
,
5.125
%
,
6/30/60
..............
2,000,000
2,067,951
JFK
NTO
LLC
,
Revenue
,
2023
,
5.375
%
,
6/30/60
..........................
2,500,000
2,611,878
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
33
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
Port
Authority
of
New
York
&
New
Jersey
,
Revenue
,
218
,
4
%
,
11/01/47
...........
$
13,500,000
$
12,448,490
Triborough
Bridge
&
Tunnel
Authority
,
Revenue
,
2022
A
,
4
%
,
11/15/52
............
10,000,000
9,472,608
726,613,768
North
Carolina
0.5%
Greater
Asheville
Regional
Airport
Authority
,
Revenue
,
2022
A
,
AGMC
Insured
,
5.5
%
,
7/01/52
.........................................................
5,000,000
5,347,822
North
Carolina
Medical
Care
Commission
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
10/01/50
.......................................
2,200,000
2,228,799
North
Carolina
Turnpike
Authority
,
Revenue
,
2009
B
,
AGMC
Insured
,
Zero
Cpn.,
1/01/33
......................
25,000,000
17,941,252
Revenue
,
2009
B
,
AGMC
Insured
,
Zero
Cpn.,
1/01/34
......................
15,000,000
10,324,622
Revenue
,
2009
B
,
AGMC
Insured
,
Zero
Cpn.,
1/01/35
......................
15,215,000
10,022,788
45,865,283
North
Dakota
0.7%
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
12/01/38
..
4,600,000
4,209,837
Altru
Health
System
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
12/01/41
..
3,875,000
3,425,830
Altru
Health
System
Obligated
Group
,
Revenue
,
2023
A
,
AGMC
Insured
,
5
%
,
12/01/53
.......................................................
2,440,000
2,487,844
City
of
Horace
,
GO
,
2023
B
,
Refunding
,
5.125
%
,
7/01/25
.....................
14,500,000
14,519,865
State
Board
of
Higher
Education
of
the
State
of
North
Dakota
,
Revenue
,
2019
A
,
AGMC
Insured
,
4
%
,
4/01/44
............................
10,000,000
9,576,217
Revenue
,
2019
A
,
AGMC
Insured
,
4
%
,
4/01/50
............................
9,620,000
8,722,720
University
of
North
Dakota
,
COP
,
2018
A
,
5
%
,
4/01/48
...........................................
5,500,000
5,631,651
COP
,
2018
A
,
5
%
,
4/01/57
...........................................
10,000,000
10,179,926
58,753,890
Ohio
1.9%
Akron
Bath
Copley
Joint
Township
Hospital
District
,
Summa
Health
System
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
11/15/37
3,915,000
3,606,232
Summa
Health
System
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
11/15/38
5,700,000
5,169,392
American
Municipal
Power,
Inc.
,
Combined
Hydroelectric
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
2/15/46
............
20,000,000
20,083,850
Prairie
State
Energy
Campus
,
Revenue
,
2019
C
,
Refunding
,
4
%
,
2/15/39
........
18,795,000
18,841,811
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien
,
2020
A-2
,
1
,
Refunding
,
4
%
,
6/01/48
.............................................
4,505,000
4,017,272
Cleveland-Cuyahoga
County
Port
Authority
,
County
of
Cuyahoga
,
Revenue
,
2013
,
5
%
,
7/01/37
.........................................................
6,000,000
6,661,481
County
of
Butler
,
UC
Health
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/45
........................................................
7,500,000
7,252,814
County
of
Franklin
,
Ohio
Living
Obligated
Group
,
Revenue
,
2022
,
Refunding
,
4
%
,
7/01/40
.........................................................
10,410,000
8,643,399
County
of
Hamilton
,
Life
Enriching
Communities
Obligated
Group
,
Revenue
,
2023
A
,
5.75
%
,
1/01/53
...
4,530,000
4,644,481
UC
Health
Obligated
Group
,
Revenue
,
2020
,
5
%
,
9/15/50
...................
7,500,000
7,190,744
Northeast
Ohio
Regional
Sewer
District
,
Revenue
,
2017
,
Refunding
,
4
%
,
11/15/38
..
10,000,000
10,069,285
Ohio
Higher
Educational
Facility
Commission
,
Case
Western
Reserve
University
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
12/01/44
....
6,815,000
6,620,223
Judson
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
12/01/42
...........
1,350,000
1,285,574
Judson
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
12/01/45
...........
1,185,000
1,102,139
Judson
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
12/01/50
...........
2,530,000
2,279,358
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
Junior
Lien
,
2013
A-4
,
5.75
%
,
2/15/35
.........................................................
35,000,000
40,694,644
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
State
of
Ohio
,
Cleveland
Clinic
Health
System
Obligated
Group
,
Revenue
,
2019
B
,
4
%
,
1/01/46
..
$
10,000,000
$
9,465,197
Premier
Health
Partners
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
11/15/38
640,000
586,045
Premier
Health
Partners
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
11/15/40
855,000
773,959
Summit
County
Development
Finance
Authority
,
UAkronPark,
Inc.
,
Revenue
,
2023
,
6
%
,
12/01/58
........................................................
9,665,000
10,309,773
169,297,673
Oklahoma
0.3%
Edmond
Public
Works
Authority
,
Revenue
,
2017
,
5
%
,
7/01/42
.........................................
4,000,000
4,117,098
Revenue
,
2017
,
5
%
,
7/01/47
.........................................
4,500,000
4,594,433
Norman
Regional
Hospital
Authority
,
Norman
Regional
Hospital
Authority
Obligated
Group
,
Revenue
,
2019
,
5
%
,
9/01/45
....................................
3,500,000
3,420,170
Oklahoma
Turnpike
Authority
,
Revenue
,
2023
,
5.5
%
,
1/01/53
...................
6,000,000
6,561,397
Oklahoma
Water
Resources
Board
,
Revenue
,
2023
B
,
4
%
,
10/01/48
.............
4,000,000
3,840,816
22,533,914
Oregon
1.1%
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/50
...
12,210,000
11,573,415
Oregon
City
School
District
No.
62
,
GO
,
2018
B
,
Refunding
,
5
%
,
6/15/49
..........
10,000,000
10,377,533
Port
of
Portland
,
Airport
,
Revenue
,
25
B
,
5
%
,
7/01/44
....................................
2,450,000
2,506,592
Airport
,
Revenue
,
27
A
,
5
%
,
7/01/38
....................................
10,000,000
10,499,940
Airport
,
Revenue
,
27
A
,
5
%
,
7/01/45
....................................
10,000,000
10,267,392
Airport
,
Revenue
,
28
,
5
%
,
7/01/52
.....................................
13,755,000
14,141,598
Airport
,
Revenue
,
29
,
5.5
%
,
7/01/48
....................................
18,500,000
20,019,266
State
of
Oregon
,
Housing
&
Community
Services
Department
,
Revenue
,
2018
A
,
3.6
%
,
1/01/33
....
5,080,000
4,912,332
Housing
&
Community
Services
Department
,
Revenue
,
2018
D
,
3.8
%
,
7/01/34
....
4,695,000
4,625,667
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO
,
2018
A
,
Zero
Cpn.,
6/15/42
.......................................
5,900,000
2,479,541
GO
,
2018
A
,
Zero
Cpn.,
6/15/43
.......................................
5,500,000
2,178,870
93,582,146
Pennsylvania
1.5%
Allegheny
County
Sanitary
Authority
,
Revenue
,
2013
,
BAM
Insured
,
5.25
%
,
12/01/44
5,000,000
4,999,705
Allentown
Commercial
and
Industrial
Development
Authority
,
Lincoln
Leadership
Academy
Charter
School
,
Revenue
,
2023
,
6
%
,
6/15/53
.....................
1,600,000
1,626,484
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development
,
Revenue
,
2015
A
,
5
%
,
6/01/33
..........
4,550,000
4,596,671
g
Erie
County
Industrial
Development
Authority
,
CFC
-
Erie
I
LLC
,
Revenue
,
144A,
2024
A
,
6.75
%
,
9/01/61
.................................................
10,000,000
9,824,895
Huntingdon
County
General
Authority
,
Juniata
College
,
Revenue
,
2021
TT-3
,
Refunding
,
5
%
,
10/01/51
............................................
5,000,000
4,573,767
Lancaster
Industrial
Development
Authority
,
Landis
Homes
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
7/01/31
........
395,000
375,783
Landis
Homes
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
7/01/37
........
345,000
306,780
Landis
Homes
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
7/01/56
........
3,300,000
2,404,554
Lehigh
County
General
Purpose
Authority
,
Lehigh
Valley
Academy
Regional
Charter
School
,
Revenue
,
2022
,
4
%
,
6/01/52
....
13,785,000
10,856,629
Lehigh
Valley
Academy
Regional
Charter
School
,
Revenue
,
2022
,
4
%
,
6/01/57
....
5,000,000
3,830,218
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
C
,
4
%
,
11/15/43
.......................................................
600,000
555,378
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
C
,
5
%
,
11/15/45
.......................................................
1,000,000
1,015,571
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
35
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
Montgomery
County
Industrial
Development
Authority,
(continued)
Meadowood
Corp.
Obligated
Group
(The)
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
12/01/48
.......................................................
$
9,000,000
$
8,477,860
Pennsylvania
Economic
Development
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Transportation
,
Revenue
,
2022
,
5.25
%
,
6/30/53
..................................................
4,000,000
4,153,538
Commonwealth
of
Pennsylvania
Department
of
Transportation
,
Revenue
,
2022
,
6
%
,
6/30/61
........................................................
5,020,000
5,515,797
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2023
B-1
,
5.25
%
,
7/01/49
......
1,000,000
1,011,839
UPMC
Obligated
Group
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
2/15/40
............
5,240,000
5,113,369
Pennsylvania
Housing
Finance
Agency
,
Revenue
,
2022-139
A
,
Refunding
,
4
%
,
10/01/37
...........................
9,100,000
8,853,317
Revenue
,
2023-143
A
,
5.45
%
,
4/01/51
..................................
10,000,000
10,361,881
Pennsylvania
Turnpike
Commission
,
Revenue
,
2020
B
,
5
%
,
12/01/50
.......................................
8,000,000
8,395,452
Revenue
,
2023
A
,
Refunding
,
5
%
,
12/01/53
..............................
7,585,000
7,972,251
Philadelphia
Gas
Works
Co.
,
Revenue
,
16th
A
,
AGMC
Insured
,
4
%
,
8/01/45
.......
4,000,000
3,845,818
School
District
of
Philadelphia
(The)
,
GO
,
2016
F
,
Refunding
,
5
%
,
9/01/33
...................................
6,415,000
6,509,323
GO
,
2016
F
,
Refunding
,
5
%
,
9/01/36
...................................
4,090,000
4,145,608
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The)
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/32
...........................
10,000,000
10,271,636
129,594,124
Rhode
Island
0.1%
Rhode
Island
Health
and
Educational
Building
Corp.
,
Lifespan
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
5/15/39
.................................
5,500,000
5,515,883
Rhode
Island
Housing
&
Mortgage
Finance
Corp.
,
Revenue
,
10
A
,
6.5
%
,
4/01/27
........................................
130,000
130,243
Revenue
,
15
A
,
6.85
%
,
10/01/24
......................................
50,000
50,090
Rhode
Island
Student
Loan
Authority
,
Revenue,
Senior
Lien
,
2021
A
,
5
%
,
12/01/27
.............................
1,000,000
1,034,688
Revenue,
Senior
Lien
,
2021
A
,
5
%
,
12/01/29
.............................
2,025,000
2,147,510
Revenue,
Senior
Lien
,
2024
A
,
4.125
%
,
12/01/43
..........................
2,700,000
2,544,855
11,423,269
South
Carolina
1.9%
County
of
Greenwood
,
Self
Regional
Healthcare
,
Revenue
,
2017
,
Refunding
,
4
%
,
10/01/37
........................................................
8,465,000
8,505,780
g
County
of
Richland
,
Village
at
Sandhill
Improvement
District
,
Special
Assessment
,
144A,
2021
,
Refunding
,
3.75
%
,
11/01/36
................................
1,270,000
1,011,461
f
Patriots
Energy
Group
Financing
Agency
,
Revenue
,
2023
A-1
,
Mandatory
Put
,
5.25
%
,
8/01/31
.........................................................
10,000,000
10,522,898
South
Carolina
Jobs-Economic
Development
Authority
,
g
Revenue
,
144A,
2021
A-1
,
3.65
%
,
12/01/36
..............................
23,510,000
19,845,165
AHPC
Vista
Towers
2021
LLC
,
Revenue
,
2021
A-1
,
3.65
%
,
12/01/36
...........
22,470,000
18,967,284
AHPC
Vista
Towers
2021
LLC
,
Revenue
,
2021
A-2
,
4.75
%
,
12/01/26
...........
2,115,000
1,973,565
g
Columbia
Portfolio
Obligated
Group
,
Revenue
,
144A,
2022
A-1
,
Zero
Cpn.,
6/01/37
17,900,000
13,618,947
g
Columbia
Portfolio
Obligated
Group
,
Revenue
,
144A,
2022
A-2
,
Zero
Cpn.,
6/01/52
32,000,000
22,428,272
g
FAH
Pelham
LLC
,
Revenue
,
144A,
2023
A-1
,
I
,
6.5
%
,
2/01/56
................
24,865,000
24,484,202
g
FAH
Pelham
LLC
,
Revenue
,
144A,
2023
A-2
,
I
,
10
%
,
8/01/39
.................
770,000
703,198
Prisma
Health
Obligated
Group
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
5/01/48
......
25,000,000
25,206,480
South
Carolina
Ports
Authority
,
Revenue
,
2018
,
5
%
,
7/01/48
.........................................
10,000,000
10,066,346
Revenue
,
2018
,
5
%
,
7/01/55
.........................................
10,400,000
10,409,955
167,743,553
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
South
Dakota
0.5%
South
Dakota
Health
&
Educational
Facilities
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
8/01/38
...............................
$
3,475,000
$
3,514,356
Avera
Health
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
7/01/42
.........
10,000,000
9,440,393
Avera
Health
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
7/01/46
.........
15,000,000
14,907,993
Monument
Health
Obligated
Group
,
Revenue
,
2017
,
4
%
,
9/01/37
..............
10,920,000
10,971,886
South
Dakota
State
Building
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
6/01/42
...
5,450,000
5,583,379
44,418,007
Tennessee
3.7%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CDFI
Phase
I
LLC
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
................................
1,000,000
1,006,855
City
of
Chattanooga
,
Electric
,
Revenue
,
2015
C
,
Refunding
,
5
%
,
9/01/40
..........
2,750,000
2,781,605
City
of
Germantown
,
GO
,
2017
,
4
%
,
8/01/43
.............................................
2,330,000
2,301,506
GO
,
2017
,
4
%
,
8/01/45
.............................................
2,525,000
2,490,233
City
of
Jackson
,
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2015
,
5
%
,
4/01/36
......
3,885,000
3,909,440
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2015
,
Pre-Refunded
,
5
%
,
4/01/36
........................................................
115,000
116,017
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2015
,
4
%
,
4/01/41
......
24,265,000
22,584,862
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2015
,
Pre-Refunded
,
4
%
,
4/01/41
........................................................
735,000
734,977
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
4/01/41
....
2,255,000
2,305,683
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2018
A
,
Pre-Refunded
,
5
%
,
4/01/41
........................................................
115,000
123,160
City
of
Knoxville
,
Wastewater
System
,
Revenue
,
2015
A
,
Refunding
,
4
%
,
4/01/42
...
5,000,000
4,935,643
City
of
Memphis
,
Electric
System
,
Revenue
,
2020
A
,
3
%
,
12/01/42
..........................
2,470,000
2,016,361
Gas
,
Revenue
,
2020
,
3
%
,
12/01/42
....................................
1,000,000
816,341
City
of
Portland
,
Water
&
Sewer
,
Revenue
,
2020
,
AGMC
Insured
,
3
%
,
4/01/45
......
1,775,000
1,341,848
County
of
Coffee
,
GO
,
2019
,
Refunding
,
4
%
,
6/01/44
........................
2,760,000
2,634,115
County
of
Maury
,
GO
,
2015
,
Refunding
,
4
%
,
4/01/34
.........................
1,775,000
1,775,835
County
of
Wilson
,
GO
,
2017
A
,
4
%
,
4/01/42
................................
5,000,000
4,855,243
Harpeth
Valley
Utilities
District
of
Davidson
and
Williamson
Counties
,
Revenue
,
2014
,
5
%
,
9/01/44
......................................................
4,400,000
4,408,756
Johnson
City
Health
&
Educational
Facilities
Board
,
Ballad
Health
Obligated
Group
,
Revenue
,
1998
,
NATL
Insured
,
ETM,
5.25
%
,
7/01/28
.......................
8,500,000
8,794,919
Knox
Chapman
Utility
District
of
Knox
County
,
Revenue
,
2012
,
Refunding
,
4
%
,
1/01/40
4,000,000
3,813,386
Knox
County
Health
Educational
&
Housing
Facility
Board
,
Covenant
Health
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/42
....
18,000,000
18,243,130
Covenant
Health
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/47
....
22,815,000
23,029,292
Provident
Group
-
UTK
Properties
LLC
,
Revenue
,
2024
A-1
,
BAM
Insured
,
5.5
%
,
7/01/54
........................................................
2,900,000
3,115,071
Provident
Group
-
UTK
Properties
LLC
,
Revenue
,
2024
A-1
,
BAM
Insured
,
5.5
%
,
7/01/59
........................................................
4,750,000
5,072,846
Provident
Group
-
UTK
Properties
LLC
,
Revenue
,
2024
A-1
,
BAM
Insured
,
5
%
,
7/01/64
........................................................
3,735,000
3,850,408
University
Health
System
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
9/01/47
3,000,000
2,844,008
University
Health
System
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
4/01/36
2,250,000
2,279,207
Madison
Suburban
Utility
District
,
Revenue
,
2021
,
3
%
,
2/01/45
.................
1,000,000
756,832
Memphis-Shelby
County
Airport
Authority
,
Revenue
,
2018
,
5
%
,
7/01/47
.........................................
11,000,000
11,088,099
Revenue
,
2021
A
,
5
%
,
7/01/45
........................................
12,235,000
12,592,275
Metropolitan
Government
Nashville
&
Davidson
County
Health
&
Educational
Facilities
Board
,
Blakeford
at
Green
Hills
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
11/01/45
.......
3,500,000
2,650,267
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
37
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Tennessee
(continued)
Metropolitan
Government
Nashville
&
Davidson
County
Health
&
Educational
Facilities
Board,
(continued)
Blakeford
at
Green
Hills
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
11/01/55
.......
$
9,015,000
$
6,302,526
Trevecca
Nazarene
University
,
Revenue
,
2021
B
,
4
%
,
10/01/41
...............
1,050,000
898,309
Trevecca
Nazarene
University
,
Revenue
,
2021
B
,
4
%
,
10/01/51
...............
6,860,000
5,352,972
Vanderbilt
University
Medical
Center
Obligated
Group
,
Revenue
,
2016
A
,
5
%
,
7/01/46
........................................................
5,000,000
5,033,702
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Electric
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
5/15/39
.............................................
4,000,000
4,001,294
Metropolitan
Nashville
Airport
Authority
(The)
,
Revenue
,
2019
B
,
5
%
,
7/01/44
........................................
20,000,000
20,583,430
Revenue
,
2019
B
,
4
%
,
7/01/49
........................................
3,000,000
2,711,566
Revenue
,
2019
B
,
5
%
,
7/01/49
........................................
17,475,000
17,796,568
Revenue
,
2022
B
,
5.25
%
,
7/01/47
.....................................
10,000,000
10,595,489
Revenue
,
2022
B
,
5.5
%
,
7/01/52
......................................
2,500,000
2,670,385
Shelby
County
Health
Educational
&
Housing
Facilities
Board
,
Methodist
Le
Bonheur
Healthcare
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
5/01/36
4,000,000
4,123,779
Rhodes
College
,
Revenue
,
2015
,
5
%
,
8/01/45
............................
1,700,000
1,704,568
Rhodes
College
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/01/40
...................
2,000,000
1,962,559
South
Blount
County
Utility
District
,
Revenue
,
2019
,
Refunding
,
3
%
,
12/01/39
......
2,015,000
1,714,194
f
Tennergy
Corp.
,
Revenue
,
2022
A
,
Mandatory
Put
,
5.5
%
,
12/01/30
..............
55,000,000
57,837,026
Tennessee
Housing
Development
Agency
,
Revenue
,
2013-1
C
,
4
%
,
7/01/43
......................................
805,000
748,967
Revenue
,
2017-3
,
3.65
%
,
7/01/47
.....................................
610,000
526,007
Revenue
,
2018-2
,
Refunding
,
3.85
%
,
7/01/42
.............................
1,005,000
907,975
Revenue
,
2018-4
,
Refunding
,
4
%
,
7/01/43
...............................
5,745,000
5,380,526
Revenue
,
2023-3
A
,
5.4
%
,
7/01/53
.....................................
6,000,000
6,221,579
West
Knox
Utility
District
,
Revenue
,
2016
,
Refunding
,
5
%
,
6/01/41
..............
1,000,000
1,000,573
West
Wilson
Utility
District
of
Wilson
County
Tennessee
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/40
......................................................
1,545,000
1,561,958
White
House
Utility
District
,
Revenue
,
2020
,
Refunding
,
3
%
,
1/01/34
.............
820,000
774,380
Williamson
County
HB
&
TS
Utility
District
,
Revenue
,
2020
,
Refunding
,
3
%
,
9/01/44
.
1,200,000
945,310
320,623,862
Texas
10.1%
Abilene
Convention
Center
Hotel
Development
Corp.
,
City
of
Abilene
Abilene
Convention
Center
,
Revenue,
First
Lien
,
2021
A
,
4
%
,
10/01/50
................
5,510,000
4,313,356
Aldine
Independent
School
District
,
GO
,
2017
A
,
Refunding
,
PSF
Guaranty
,
5
%
,
2/15/42
.........................................................
10,700,000
10,975,102
Aubrey
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
4
%
,
2/15/52
........
7,500,000
7,115,309
Austin
Community
College
District
,
GO
,
2023
,
5.25
%
,
8/01/53
..................
6,000,000
6,496,229
Carrollton-Farmers
Branch
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/15/53
.........................................................
10,000,000
9,383,640
Central
Texas
Turnpike
System
,
Revenue
,
2015
C
,
Refunding
,
5
%
,
8/15/37
...............................
5,000,000
5,008,379
Revenue
,
2015
C
,
Refunding
,
5
%
,
8/15/42
...............................
36,750,000
36,772,561
City
of
Arlington
,
Special
Tax,
Senior
Lien
,
2018
A
,
AGMC
Insured
,
4
%
,
2/15/44
.....
20,000,000
19,065,752
City
of
Austin
,
Electric
Utility
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
11/15/45
...................
10,000,000
10,123,372
g
Whisper
Valley
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
144A,
2019
,
4.625
%
,
11/01/39
............................
1,405,000
1,317,762
g
Whisper
Valley
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
144A,
2019
,
4.75
%
,
11/01/48
.............................
2,450,000
2,223,818
g
City
of
Celina
,
Sutton
Fields
II
Public
Improvement
District
,
Special
Assessment
,
144A,
2019
,
4.25
%
,
9/01/49
...............................................
3,065,000
2,562,114
City
of
Corpus
Christi
,
Utility
System
,
Revenue
,
2023
,
Refunding
,
4
%
,
7/15/48
.....................
9,000,000
8,652,119
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
City
of
Corpus
Christi,
(continued)
Utility
System
,
Revenue,
Junior
Lien
,
2015
A
,
5
%
,
7/15/40
...................
$
13,200,000
$
13,346,278
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
2022
A
,
6
%
,
12/01/62
.....................................................
19,000,000
18,444,039
g
City
of
Dallas
Housing
Finance
Corp.
,
DHFC
-
Dylan
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
144A,
2022
A
,
6
%
,
12/01/62
................................
18,040,000
17,693,558
City
of
Houston
,
Airport
System
,
Revenue,
Sub.
Lien
,
2023
A
,
Refunding
,
AGMC
Insured
,
5.25
%
,
7/01/48
.............................................
5,000,000
5,313,314
City
of
Laredo
,
Waterworks
&
Sewer
System
,
Revenue
,
2016
,
Refunding
,
4
%
,
3/01/41
9,690,000
9,481,821
City
of
Leander
,
Oak
Creek
Public
Improvement
District
,
Special
Assessment
,
2020
,
Refunding
,
3.25
%
,
9/01/38
..................................................
1,275,000
1,014,609
Oak
Creek
Public
Improvement
District
,
Special
Assessment
,
2020
,
Refunding
,
3.25
%
,
9/01/44
..................................................
1,460,000
1,061,259
g
City
of
Mesquite
,
Heartland
Town
Center
Public
Improvement
District
Phase
2
,
Special
Assessment
,
144A,
2023
,
5
%
,
9/01/43
...........................................
816,000
793,381
Heartland
Town
Center
Public
Improvement
District
Phase
2
,
Special
Assessment
,
144A,
2023
,
5.125
%
,
9/01/52
.......................................
373,000
357,173
City
of
Pflugerville
,
GO
,
2023
,
4
%
,
8/01/49
................................
3,500,000
3,257,648
g
City
of
Princeton
,
Eastridge
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
144A,
2022
,
5.25
%
,
9/01/52
.........................
1,376,000
1,262,448
g
City
of
Royse
City
,
Waterscape
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
144A,
2017
,
5
%
,
9/15/48
................................
2,700,000
2,550,094
Waterscape
Public
Improvement
District
Improvement
Area
No.
1
Phase
1B
,
Special
Assessment
,
144A,
2019
,
4.375
%
,
9/15/39
.............................
610,000
555,788
Waterscape
Public
Improvement
District
Improvement
Area
No.
1
Phase
1B
,
Special
Assessment
,
144A,
2019
,
4.5
%
,
9/15/48
...............................
1,260,000
1,097,636
Clifton
Higher
Education
Finance
Corp.
,
International
Leadership
of
Texas,
Inc.
,
Revenue
,
2022
,
PSF
Guaranty
,
4
%
,
8/15/42
2,150,000
2,102,783
International
Leadership
of
Texas,
Inc.
,
Revenue
,
2022
,
PSF
Guaranty
,
5
%
,
8/15/47
11,500,000
12,208,124
YES
Prep
Public
Schools,
Inc.
,
Revenue
,
2023
,
PSF
Guaranty
,
4.25
%
,
4/01/53
...
5,500,000
5,329,849
Comal
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/01/46
........
3,345,000
3,237,084
Community
Independent
School
District
,
GO
,
2022
B
,
PSF
Guaranty
,
4
%
,
2/15/50
...
2,750,000
2,607,498
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel
,
Revenue,
Third
Lien
,
2021
C
,
5
%
,
10/01/32
....
90,000
99,634
Conroe
Convention
Center
Hotel
,
Revenue,
Third
Lien
,
2021
C
,
5
%
,
10/01/33
....
100,000
110,544
Conroe
Convention
Center
Hotel
,
Revenue,
Third
Lien
,
2021
C
,
5
%
,
10/01/34
....
100,000
111,107
Conroe
Convention
Center
Hotel
,
Revenue,
Third
Lien
,
2021
C
,
5
%
,
10/01/35
....
85,000
94,046
Conroe
Convention
Center
Hotel
,
Revenue,
Third
Lien
,
2021
C
,
5
%
,
10/01/36
....
85,000
93,415
Conroe
Convention
Center
Hotel
,
Revenue,
Third
Lien
,
2021
C
,
4
%
,
10/01/41
....
600,000
582,318
Conroe
Convention
Center
Hotel
,
Revenue,
Third
Lien
,
2021
C
,
4
%
,
10/01/46
....
700,000
640,741
Conroe
Convention
Center
Hotel
,
Revenue,
Third
Lien
,
2021
C
,
4
%
,
10/01/50
....
650,000
578,666
Crowley
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
5.25
%
,
2/01/53
....
7,500,000
8,066,749
Del
Valle
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
4
%
,
6/15/47
......
7,500,000
7,194,956
Forney
Independent
School
District
,
GO
,
2015
,
Refunding
,
PSF
Guaranty
,
5
%
,
8/15/37
15,000,000
15,137,142
Frisco
Independent
School
District
,
GO
,
2016
,
PSF
Guaranty
,
5
%
,
8/15/46
........
20,000,000
20,262,444
Grand
Parkway
Transportation
Corp.
,
Revenue
,
2013
B
,
5.8
%
,
10/01/45
..........
10,000,000
10,822,813
Gulf
Coast
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2003
B
,
1.5
%
,
5/01/28
....
2,000,000
1,785,435
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Houston
Methodist
Hospital
Obligated
Group
,
Revenue
,
2015
,
5
%
,
12/01/45
...........................
30,000,000
30,183,315
Harris
County-Houston
Sports
Authority
,
Revenue,
Senior
Lien
,
2020
A
,
Refunding
,
AGMC
Insured
,
3.125
%
,
11/15/56
.....................................
5,000,000
3,522,132
Harris-Waller
Counties
Municipal
Utility
District
No.
4
,
GO
,
2022
,
5
%
,
11/01/34
.............................................
795,000
806,117
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
39
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Harris-Waller
Counties
Municipal
Utility
District
No.
4,
(continued)
GO
,
2022
,
5
%
,
11/01/38
.............................................
$
840,000
$
821,404
GO
,
2022
,
5.25
%
,
11/01/41
..........................................
1,435,000
1,409,500
GO
,
2022
,
5.5
%
,
11/01/44
...........................................
2,010,000
1,999,616
GO
,
2022
,
5.5
%
,
11/01/48
...........................................
5,445,000
5,280,868
Highland
Park
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/15/48
..
5,500,000
5,300,764
Humble
Independent
School
District
,
GO
,
2018
,
PSF
Guaranty
,
5
%
,
2/15/43
.......
10,000,000
10,270,704
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO
,
2021
,
2.375
%
,
9/01/31
..........................................
165,000
137,342
GO
,
2021
,
2.375
%
,
9/01/32
..........................................
170,000
138,820
GO
,
2021
,
2.375
%
,
9/01/33
..........................................
170,000
136,441
GO
,
2021
,
2.5
%
,
9/01/34
............................................
180,000
142,916
GO
,
2021
,
2.5
%
,
9/01/36
............................................
370,000
277,440
GO
,
2021
,
2.625
%
,
9/01/38
..........................................
385,000
271,063
GO
,
2021
,
3
%
,
9/01/41
.............................................
375,000
267,411
GO
,
2021
,
3
%
,
9/01/46
.............................................
750,000
491,346
GO
,
2021
,
3
%
,
9/01/51
.............................................
1,265,000
778,645
g
Lakeside
Place
PFC
,
Torrey
Chase
Apartments
LP
,
Revenue
,
144A,
2021
,
3.48
%
,
12/15/39
........................................................
12,546,779
9,517,467
Lamar
Consolidated
Independent
School
District
,
GO
,
2018
,
PSF
Guaranty
,
5
%
,
2/15/43
..................................
6,800,000
7,007,624
GO
,
2023
,
4
%
,
2/15/53
.............................................
5,000,000
4,592,131
GO
,
2023
A
,
PSF
Guaranty
,
5
%
,
2/15/58
................................
7,000,000
7,379,870
Lubbock-Cooper
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4.375
%
,
2/15/53
.........................................................
15,000,000
14,797,380
Medina
Valley
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/15/53
..
15,000,000
14,052,133
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
NCCD-Cain
Hall
Redevelopment
I
LLC
,
Revenue
,
2016
A-1
,
5
%
,
4/01/46
........
6,000,000
6,068,880
NCCD-College
Station
Properties
LLC
,
Revenue
,
A
,
5
%
,
7/01/47
..............
10,000,000
9,275,000
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue
,
2019
A-1
,
5
%
,
12/01/39
.......................................................
5,650,000
5,419,431
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue
,
2019
A-1
,
5
%
,
12/01/49
.......................................................
11,470,000
10,225,881
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.
,
Revenue
,
2019
A-1
,
5
%
,
12/01/54
.......................................................
230,000
201,124
Westminster
Manor
,
Revenue
,
2021
,
4
%
,
11/01/49
.........................
14,400,000
12,374,714
Newark
Higher
Education
Finance
Corp.
,
Abilene
Christian
University
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
4/01/57
...........................................
5,000,000
4,225,395
North
Harris
County
Regional
Water
Authority
,
Revenue,
Senior
Lien
,
2016
,
Refunding
,
5
%
,
12/15/46
.....................................................
18,460,000
18,795,841
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
1/01/35
.........
10,000,000
10,065,444
North
Texas
Tollway
System
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
1/01/38
.........
10,000,000
10,044,988
North
Texas
Tollway
System
,
Revenue,
First
Tier
,
2017
A
,
Refunding
,
5
%
,
1/01/43
.
10,000,000
10,351,319
North
Texas
Tollway
System
,
Revenue,
First
Tier
,
I
,
Pre-Refunded
,
6.5
%
,
1/01/43
..
25,000,000
25,465,405
North
Texas
Tollway
System
,
Revenue,
Second
Tier
,
2017
B
,
Refunding
,
5
%
,
1/01/48
5,000,000
5,070,779
North
Texas
Tollway
System
,
Revenue,
Second
Tier
,
2018
,
Refunding
,
5
%
,
1/01/48
25,250,000
25,817,438
Special
Projects
System
,
Revenue
,
2011
B
,
Pre-Refunded
,
Zero
Cpn.,
9/01/37
....
7,500,000
3,720,937
Special
Projects
System
,
Revenue
,
2011
B
,
Pre-Refunded
,
Zero
Cpn.,
9/01/43
....
7,500,000
2,371,530
Special
Projects
System
,
Revenue
,
2011
C
,
Pre-Refunded
,
6.75
%
,
9/01/45
......
25,000,000
30,689,680
Northwest
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/15/48
.....
7,000,000
6,695,838
Port
Freeport
,
Revenue,
Senior
Lien
,
2019
A
,
5
%
,
6/01/49
.....................
4,000,000
4,023,974
San
Antonio
Education
Facilities
Corp.
,
University
of
the
Incarnate
Word
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
4/01/46
......
13,705,000
11,244,451
University
of
the
Incarnate
Word
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
4/01/51
......
3,765,000
2,957,632
University
of
the
Incarnate
Word
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
4/01/54
......
1,035,000
799,320
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
San
Antonio
Public
Facilities
Corp.
,
City
of
San
Antonio
,
Revenue
,
2012
,
Refunding
,
4
%
,
9/15/42
......................................................
$
36,500,000
$
33,852,553
San
Jacinto
River
Authority
,
Revenue
,
2011
,
AGMC
Insured
,
5
%
,
10/01/32
............................
5,000,000
5,000,773
Revenue
,
2011
,
AGMC
Insured
,
5
%
,
10/01/37
............................
3,000,000
2,912,937
Sherman
Independent
School
District
,
GO
,
2023
B
,
PSF
Guaranty
,
5
%
,
2/15/53
....
5,000,000
5,295,426
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
CHRISTUS
Health
Obligated
Group
,
Revenue
,
2018
B
,
5
%
,
7/01/43
...........
10,000,000
10,322,008
CHRISTUS
Health
Obligated
Group
,
Revenue
,
2022
A
,
4
%
,
7/01/53
............
3,100,000
2,795,546
CHRISTUS
Health
Obligated
Group
,
Revenue
,
2022
A
,
5
%
,
7/01/53
............
15,000,000
15,366,841
Texas
Health
Resources
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
2/15/41
15,165,000
15,430,395
Tarrant
County
Health
Facilities
Development
Corp.
,
Texas
Health
Resources
Obligated
Group
,
Revenue
,
1994
,
FGIC
Insured
,
ETM,
6
%
,
9/01/24
........................................................
935,000
941,173
Texas
Department
of
Housing
&
Community
Affairs
,
Revenue
,
2023
A
,
GNMA
Insured
,
5.25
%
,
1/01/53
.........................
14,000,000
14,376,810
Revenue
,
2024
A
,
GNMA
Insured
,
5.125
%
,
1/01/54
........................
3,000,000
3,069,632
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue
,
2021
,
Refunding
,
5
%
,
12/15/29
................................
12,715,000
13,183,582
Revenue
,
2021
,
Refunding
,
5
%
,
12/15/32
................................
10,350,000
10,900,355
f
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
IV
,
Revenue
,
2023
B
,
Mandatory
Put
,
5.5
%
,
1/01/34
....................................................
13,000,000
14,344,014
Texas
Private
Activity
Bond
Surface
Transportation
Corp.
,
NTE
Mobility
Partners
LLC
,
Revenue,
Senior
Lien
,
2023
,
5.5
%
,
12/31/58
.............................
6,000,000
6,440,113
Texas
Transportation
Commission
,
State
Highway
249
System
,
Revenue,
First
Tier
,
2019
A
,
Zero
Cpn.,
8/01/48
......
6,250,000
1,812,700
State
Highway
249
System
,
Revenue,
First
Tier
,
2019
A
,
Zero
Cpn.,
8/01/49
......
5,000,000
1,367,345
State
Highway
249
System
,
Revenue,
First
Tier
,
2019
A
,
Zero
Cpn.,
8/01/50
......
5,500,000
1,418,091
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas
,
Revenue
,
2018
B
,
4
%
,
10/15/43
.......................................................
25,000,000
24,467,608
State
Water
Implementation
Revenue
Fund
for
Texas
,
Revenue
,
2019
A
,
4
%
,
10/15/49
.......................................................
20,000,000
18,912,422
State
Water
Implementation
Revenue
Fund
for
Texas
,
Revenue
,
2022
,
5
%
,
10/15/47
16,050,000
17,131,083
g
Town
of
Little
Elm
,
Valencia
Public
Improvement
District
Improvement
Area
No.
3
,
Special
Assessment
,
144A,
2021
,
3.125
%
,
9/01/41
.......................................
708,000
512,834
Valencia
Public
Improvement
District
Improvement
Area
No.
3
,
Special
Assessment
,
144A,
2021
,
4
%
,
9/01/47
...........................................
831,000
675,173
Town
of
Ponder
,
Ponder
Public
Improvement
District
No.
1
,
Special
Assessment
,
2017
,
5
%
,
9/01/45
500,000
475,359
Ponder
Public
Improvement
District
No.
1
,
Special
Assessment
,
2017
,
5
%
,
9/01/47
865,000
818,671
Viridian
Municipal
Management
District
,
GO
,
2023
,
AGMC
Insured
,
5
%
,
12/01/49
...
1,000,000
1,006,149
West
Travis
County
Public
Utility
Agency
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
......................................................
5,000,000
4,715,942
Westside
211
Special
Improvement
District
,
GO,
Sub.
Lien
,
2021
,
3
%
,
8/15/41
.....................................
790,000
594,133
GO,
Sub.
Lien
,
2021
,
3
%
,
8/15/45
.....................................
615,000
433,531
GO,
Sub.
Lien
,
2021
,
3
%
,
8/15/51
.....................................
1,570,000
1,031,049
GO,
Sub.
Lien
,
2022
,
5.625
%
,
8/15/52
..................................
1,065,000
1,071,193
Ysleta
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
5
%
,
8/15/56
........
23,445,000
24,594,912
882,061,710
Utah
1.1%
Central
Utah
Water
Conservancy
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
10/01/38
10,000,000
10,033,597
City
of
Bountiful
,
Sales
Tax
,
Revenue
,
2023
,
4
%
,
7/01/53
......................
6,840,000
6,407,738
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
41
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Utah
(continued)
City
of
Salt
Lake
City
,
Airport
,
Revenue
,
2018
A
,
5
%
,
7/01/48
..................................
$
25,110,000
$
25,427,722
Airport
,
Revenue
,
2021
A
,
5
%
,
7/01/51
..................................
10,000,000
10,178,551
Airport
,
Revenue
,
2023
A
,
5.25
%
,
7/01/53
...............................
10,000,000
10,501,980
Jordan
Valley
Water
Conservancy
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
10/01/41
6,000,000
5,962,003
University
of
Utah
(The)
,
Revenue
,
2022
A
,
5
%
,
8/01/46
......................
9,645,000
10,332,444
Utah
Infrastructure
Agency
,
Revenue
,
2021
,
3
%
,
10/15/26
........................................
550,000
529,107
Revenue
,
2021
,
4
%
,
10/15/28
........................................
350,000
343,173
Revenue
,
2021
,
4
%
,
10/15/32
........................................
540,000
523,602
Revenue
,
2021
,
4
%
,
10/15/38
........................................
500,000
452,026
Revenue
,
2021
,
4
%
,
10/15/41
........................................
1,450,000
1,252,201
Revenue
,
2021
,
3
%
,
10/15/45
........................................
2,000,000
1,348,202
Revenue
,
2022
,
5
%
,
10/15/37
........................................
1,200,000
1,214,919
Revenue
,
2022
,
5
%
,
10/15/46
........................................
3,650,000
3,498,808
Utah
Municipal
Power
Agency
,
Revenue
,
2016
B
,
5
%
,
7/01/38
..................
10,000,000
10,221,336
98,227,409
Vermont
0.1%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
President
&
Fellows
of
Middlebury
College
,
Revenue
,
2020
,
Refunding
,
5
%
,
11/01/49
4,000,000
4,148,322
University
of
Vermont
Health
Network
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
12/01/36
...........................................
5,000,000
5,087,677
9,235,999
Virginia
0.6%
Amelia
County
Industrial
Development
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2002
,
Refunding
,
1.45
%
,
4/01/27
......................................
2,350,000
2,152,648
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien
,
2020
A
,
5
%
,
7/01/60
................................................
19,000,000
19,814,306
Virginia
Housing
Development
Authority
,
Revenue
,
2023
F
,
FHA
Insured
,
5
%
,
11/01/43
11,120,000
11,396,865
Virginia
Resources
Authority
,
Revenue
,
2012
A
,
5
%
,
11/01/39
..................
70,000
70,008
Virginia
Small
Business
Financing
Authority
,
Capital
Beltway
Express
LLC
,
Revenue,
Senior
Lien
,
2022
,
Refunding
,
5
%
,
12/31/52
3,730,000
3,744,713
Capital
Beltway
Express
LLC
,
Revenue,
Senior
Lien
,
2022
,
Refunding
,
5
%
,
12/31/57
6,270,000
6,277,243
Elizabeth
River
Crossings
OpCo
LLC
,
Revenue,
Senior
Lien
,
2022
,
Refunding
,
4
%
,
1/01/39
........................................................
5,520,000
5,347,837
National
Senior
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
1/01/51
....................................................
4,000,000
3,465,850
52,269,470
Washington
2.7%
f
Align
Capital
Trust
,
Revenue
,
2020-4
A
,
Mandatory
Put
,
3.75
%
,
1/01/26
..........
10,139,330
9,851,476
Central
Puget
Sound
Regional
Transit
Authority
,
Sales
Motor
Vehicle
&
Rental
Car
Tax
,
Revenue
,
2021
S-1
,
Refunding
,
4
%
,
11/01/46
.............................
20,000,000
19,277,326
City
of
Seattle
,
Municipal
Light
&
Power
,
Revenue
,
2017
C
,
Refunding
,
4
%
,
9/01/36
............
15,000,000
15,223,886
Municipal
Light
&
Power
,
Revenue
,
2018
A
,
4
%
,
1/01/42
.....................
10,855,000
10,740,281
Everett
Housing
Authority
,
Revenue
,
2022
,
Refunding
,
4
%
,
7/01/37
..............
34,480,000
33,240,392
Grant
County
Public
Hospital
District
No.
1
,
GO
,
2023
,
5.125
%
,
12/01/52
.........
4,500,000
4,448,200
NJB
Properties
,
Revenue
,
2006
A
,
5
%
,
12/01/36
............................
5,000
5,003
Port
of
Seattle
,
Revenue
,
2018
A
,
5
%
,
5/01/38
........................................
15,000,000
15,269,509
Revenue
,
2019
,
4
%
,
4/01/44
.........................................
4,000,000
3,677,852
Skagit
County
Public
Hospital
District
No.
1
,
Revenue
,
2024
,
5.5
%
,
12/01/54
.......
3,050,000
3,202,154
University
of
Washington
,
Revenue
,
2018
,
5
%
,
4/01/48
.......................
29,450,000
30,196,407
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Washington
(continued)
Washington
Health
Care
Facilities
Authority
,
Fred
Hutchinson
Cancer
Center
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
9/01/45
........................................................
$
2,610,000
$
2,398,143
g
Fred
Hutchinson
Cancer
Center
Obligated
Group
,
Revenue
,
144A,
2021
,
5
%
,
12/01/29
.......................................................
250,000
265,254
g
Fred
Hutchinson
Cancer
Center
Obligated
Group
,
Revenue
,
144A,
2021
,
5
%
,
12/01/33
.......................................................
250,000
269,366
g
Fred
Hutchinson
Cancer
Center
Obligated
Group
,
Revenue
,
144A,
2021
,
3
%
,
12/01/34
.......................................................
300,000
276,064
g
Fred
Hutchinson
Cancer
Center
Obligated
Group
,
Revenue
,
144A,
2021
,
4
%
,
12/01/45
.......................................................
1,200,000
1,100,380
g
Fred
Hutchinson
Cancer
Center
Obligated
Group
,
Revenue
,
144A,
2021
,
4
%
,
12/01/48
.......................................................
910,000
812,948
Multicare
Health
System
Obligated
Group
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
8/15/41
25,000,000
23,525,070
Providence
St.
Joseph
Health
Obligated
Group
,
Revenue
,
2012
A
,
5
%
,
10/01/42
..
10,175,000
10,175,951
Providence
St.
Joseph
Health
Obligated
Group
,
Revenue
,
2014
D
,
Refunding
,
5
%
,
10/01/38
.......................................................
8,000,000
7,804,634
Providence
St.
Joseph
Health
Obligated
Group
,
Revenue
,
2014
D
,
Pre-Refunded
,
5
%
,
10/01/41
...................................................
315,000
316,254
Washington
Higher
Education
Facilities
Authority
,
Seattle
Pacific
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/42
......................................
3,800,000
3,485,976
Washington
State
Convention
Center
Public
Facilities
District
,
Lodging
Tax
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
7/01/43
.......................................
14,855,000
13,939,856
Washington
State
Housing
Finance
Commission
,
Revenue
,
2021-1
,
A
,
3.5
%
,
12/20/35
...................................
21,046,796
19,148,400
g
Madison
at
Rivers
Edge
Apartments
LLC
,
Revenue
,
144A,
2021
A
,
3.65
%
,
1/01/37
2,965,000
2,500,594
g
Seattle
Academy
of
Arts
&
Sciences
,
Revenue
,
144A,
2023
,
Refunding
,
6.375
%
,
7/01/63
........................................................
7,625,000
8,223,348
239,374,724
West
Virginia
0.7%
f
West
Virginia
Economic
Development
Authority
,
Kentucky
Power
Co.
,
Revenue
,
2014
A
,
Refunding
,
Mandatory
Put
,
4.7
%
,
6/17/26
.............................
6,000,000
6,068,628
West
Virginia
Hospital
Finance
Authority
,
Cabell
Huntington
Hospital
Obligated
Group
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
1/01/43
........................................................
13,250,000
12,479,008
Vandalia
Health,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
9/01/38
.
3,040,000
3,082,854
Vandalia
Health,
Inc.
Obligated
Group
,
Revenue
,
2023
B
,
Refunding
,
6
%
,
9/01/53
.
3,000,000
3,343,833
West
Virginia
United
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
6/01/47
7,000,000
7,118,104
West
Virginia
United
Health
System
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
6/01/52
20,700,000
20,947,090
West
Virginia
Water
Development
Authority
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
10/01/36
..............................
5,000,000
5,125,884
Revenue
,
2016
A
,
Refunding
,
5
%
,
10/01/45
..............................
5,435,000
5,500,562
63,665,963
Wisconsin
4.1%
Public
Finance
Authority
,
Revenue
,
2023-1
,
A
,
5.75
%
,
7/01/62
...................................
25,000,000
26,862,252
g
Revenue
,
144A,
2022
,
B-1
,
4
%
,
12/28/44
................................
21,085,631
16,896,496
2017
IAVF
Rubix
LLC
,
Revenue
,
2020
A
,
4.25
%
,
12/01/50
...................
3,750,000
2,912,292
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
11/15/41
.......................................................
1,205,000
1,244,970
g
AL-FL
Portfolio
Obligated
Group
,
Revenue
,
144A,
2021
A
,
3.4
%
,
12/01/36
.......
39,000,000
32,352,766
Blue
Ridge
Healthcare
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
3
%
,
1/01/50
2,185,000
1,564,102
CFC-SA
LLC
,
Revenue,
Senior
Lien
,
2022
A
,
5
%
,
2/01/62
...................
10,000,000
9,570,670
Coral
Academy
of
Science
Las
Vegas
,
Revenue
,
2021
A
,
4
%
,
7/01/41
..........
1,000,000
850,735
Coral
Academy
of
Science
Las
Vegas
,
Revenue
,
2021
A
,
4
%
,
7/01/61
..........
10,000,000
7,216,779
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
43
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Public
Finance
Authority,
(continued)
g
Dominium
Holdings
I
LLC
,
Revenue
,
144A,
2024-1
,
B-1
,
6.81
%
,
4/28/36
........
$
10,000,000
$
10,012,481
f
Duke
Energy
Progress
LLC
,
Revenue
,
2022
B
,
Refunding
,
Mandatory
Put
,
4
%
,
10/01/30
.......................................................
2,200,000
2,190,443
EMU
Campus
Living
LLC
,
Revenue
,
2022
A-1
,
BAM
Insured
,
5.5
%
,
7/01/52
......
5,000,000
5,347,821
EMU
Campus
Living
LLC
,
Revenue
,
2022
A-1
,
BAM
Insured
,
5.625
%
,
7/01/55
....
6,620,000
7,141,312
g
FAH
Tree
House
LLC
,
Revenue
,
144A,
2023
A
,
6.5
%
,
8/01/53
................
22,945,000
22,962,684
g
Greystone
Housing
Impact
Investors
LP
,
Revenue
,
144A,
2023-1
,
B-1
,
7.125
%
,
7/25/34
........................................................
26,905,000
27,952,420
g
Hope
Housing
Foundation
Obligated
Group
,
Revenue
,
144A,
2022
A
,
3.8
%
,
12/01/37
24,375,000
20,570,896
g
Pine
Forest
2022
Obligated
Group
,
Revenue
,
144A,
2022
A
,
6.5
%
,
12/01/52
.....
22,565,000
22,829,317
g
Pine
Forest
2022
Obligated
Group
,
Revenue
,
144A,
2022
B
,
7.5
%
,
12/01/29
.....
2,645,000
2,610,747
RED
River
Valley
Alliance
LLC
,
Revenue
,
2021
,
4
%
,
9/30/51
.................
730,000
601,604
RED
River
Valley
Alliance
LLC
,
Revenue
,
2021
,
4
%
,
3/31/56
.................
30,185,000
24,322,563
Southeastern
Regional
Medical
Center
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
2/01/39
............................................
4,755,000
3,825,127
Southeastern
Regional
Medical
Center
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
2/01/46
............................................
11,980,000
8,811,111
Triad
Math
&
Science
Academy
Co.
,
Revenue
,
2021
A
,
4
%
,
6/15/41
............
1,280,000
1,079,042
Triad
Math
&
Science
Academy
Co.
,
Revenue
,
2021
A
,
4
%
,
6/15/51
............
10,000
7,563
Triad
Math
&
Science
Academy
Co.
,
Revenue
,
2021
A
,
4
%
,
6/15/61
............
6,000,000
4,309,765
Triad
Math
&
Science
Academy
Co.
,
Revenue
,
2022
,
5.25
%
,
6/15/52
...........
1,610,000
1,485,188
Triad
Math
&
Science
Academy
Co.
,
Revenue
,
2022
,
5.375
%
,
6/15/57
..........
1,550,000
1,446,432
UNC
Health
Appalachian
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
7/01/46
.......
5,075,000
3,976,210
UNC
Health
Appalachian
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
7/01/51
.......
5,705,000
4,207,541
UNC
Health
Appalachian
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
7/01/56
.......
2,250,000
1,611,261
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The)
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
10/01/41
...........................................
1,010,000
942,499
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The)
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
10/01/51
...........................................
2,185,000
1,869,491
f,g
WV
2020
Holdings
LLC
Obligated
Group
,
Revenue
,
144A,
2020
A-2
,
Mandatory
Put
,
4
%
,
12/01/35
...................................................
29,600,000
25,159,446
Wisconsin
Center
District
,
Revenue,
Junior
Lien
,
2020
D
,
AGMC
Insured
,
Zero
Cpn.,
12/15/45
........................................................
20,000,000
7,041,530
Wisconsin
Health
&
Educational
Facilities
Authority
,
Children's
Hospital
of
Wisconsin
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/15/42
........................................................
15,000,000
14,379,152
Marshfield
Clinic
Health
System
Obligated
Group
,
Revenue
,
2017
C
,
Refunding
,
5
%
,
2/15/47
........................................................
20,000,000
19,354,350
Oakwood
Lutheran
Senior
Ministries
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
1/01/47
....................................................
5,200,000
3,315,939
Oakwood
Lutheran
Senior
Ministries
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
4
%
,
1/01/57
....................................................
1,400,000
809,913
St.
John's
Communities,
Inc.
Obligated
Group
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
9/15/36
........................................................
530,000
481,977
St.
John's
Communities,
Inc.
Obligated
Group
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
9/15/41
........................................................
510,000
434,268
St.
John's
Communities,
Inc.
Obligated
Group
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
9/15/45
........................................................
475,000
380,447
St.
John's
Communities,
Inc.
Obligated
Group
,
Revenue
,
2022
,
Refunding
,
4
%
,
9/15/36
........................................................
775,000
704,778
St.
John's
Communities,
Inc.
Obligated
Group
,
Revenue
,
2022
,
Refunding
,
4
%
,
9/15/41
........................................................
770,000
655,660
St.
John's
Communities,
Inc.
Obligated
Group
,
Revenue
,
2022
,
Refunding
,
4
%
,
9/15/45
........................................................
650,000
520,611
Wisconsin
Masonic
Home
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
8/15/46
......
895,000
703,340
Wisconsin
Masonic
Home
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
8/15/51
......
1,335,000
988,613
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Wisconsin
Health
&
Educational
Facilities
Authority,
(continued)
Wisconsin
Masonic
Home
Obligated
Group
,
Revenue
,
2021
A
,
4
%
,
8/15/55
......
$
1,760,000
$
1,267,423
Wisconsin
Masonic
Home
Obligated
Group
,
Revenue
,
2024
A
,
5.75
%
,
8/15/59
....
1,940,000
1,953,284
357,735,311
U.S.
Territories
2.8%
District
of
Columbia
2.0%
District
of
Columbia
,
Revenue
,
2006
B-1
,
BHAC,
FGIC
Insured
,
5
%
,
2/01/25
.....................
7,000,000
7,005,940
Revenue
,
2006
B-1
,
BHAC,
FGIC
Insured
,
5
%
,
2/01/26
.....................
8,810,000
8,817,342
Catholic
University
of
America
(The)
,
Revenue
,
2017
B
,
5
%
,
10/01/42
..........
20,535,000
20,864,129
Catholic
University
of
America
(The)
,
Revenue
,
2017
B
,
5
%
,
10/01/47
..........
25,110,000
25,289,554
Catholic
University
of
America
(The)
,
Revenue
,
2018
,
Refunding
,
5
%
,
10/01/43
...
4,000,000
4,070,580
International
School
Obligated
Group
,
Revenue
,
2019
,
5
%
,
7/01/49
............
1,000,000
999,649
International
School
Obligated
Group
,
Revenue
,
2019
,
5
%
,
7/01/54
............
1,905,000
1,874,987
Water
&
Sewer
Authority
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
10/01/49
..........
25,000,000
25,865,155
Metropolitan
Washington
Airports
Authority
,
Aviation
,
Revenue
,
2018
A
,
Refunding
,
5
%
,
10/01/48
.......................
10,275,000
10,428,694
Aviation
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
10/01/49
.......................
10,000,000
10,207,636
Aviation
,
Revenue
,
2023
A
,
Refunding
,
5.25
%
,
10/01/53
.....................
6,000,000
6,298,163
Dulles
Toll
Road
,
Revenue,
Second
Lien
,
2009
C
,
Pre-Refunded
,
AGMC
Insured
,
6.5
%
,
10/01/41
..................................................
25,000,000
26,838,898
Dulles
Toll
Road
,
Revenue,
Sub.
Lien
,
2019
B
,
Refunding
,
4
%
,
10/01/49
........
13,555,000
12,377,294
Washington
Metropolitan
Area
Transit
Authority
,
Dedicated
,
Revenue
,
2021
A
,
4
%
,
7/15/43
.........................................................
12,775,000
12,422,580
173,360,601
Puerto
Rico
0.8%
HTA
HRRB
Custodial
Trust
,
Revenue
,
2007
CC
,
5.25
%
,
7/01/34
....................................
458,954
460,483
Revenue
,
2007
CC
,
5.25
%
,
7/01/36
....................................
2,305,353
2,315,164
HTA
TRRB
Custodial
Trust
,
Revenue
,
2005
L
,
5.25
%
,
7/01/41
.....................................
11,899,431
11,642,653
Revenue
,
2007
N
,
5.25
%
,
7/01/36
.....................................
2,238,588
2,248,115
Revenue
,
2007
N
,
5.25
%
,
7/01/39
.....................................
85,547
86,022
Puerto
Rico
Electric
Power
Authority
,
j
Revenue
,
2013
A
,
5
%
,
7/01/42
........................................
18,925,000
5,015,125
Revenue
,
VV
,
Refunding
,
NATL
Insured
,
5.25
%
,
7/01/32
....................
5,780,000
5,691,489
j
Revenue
,
XX
,
5.25
%
,
7/01/40
........................................
15,000,000
3,975,000
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
Revenue
,
2000
B
,
6.625
%
,
1/01/27
....................................
317,172
311,976
Revenue
,
2000
B
,
6.625
%
,
1/01/28
....................................
2,419,017
2,374,532
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax
,
Revenue
,
A-1
,
5
%
,
7/01/58
..................................
27,576,000
27,579,251
Sales
Tax
,
Revenue
,
A-2
,
4.784
%
,
7/01/58
...............................
5,593,000
5,485,568
67,185,378
Total
U.S.
Territories
....................................................................
240,545,979
Total
Municipal
Bonds
(Cost
$
8,797,995,931
)
...................................
8,543,584,061
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
45
a
a
Shares
a
Value
a
a
a
a
a
Escrows
and
Litigation
Trusts
0.0%
†
a
,b
Puerto
Rico
Electric
Power
Authority,
Escrow
Account
........................
1,723,393
$
1,378,715
Total
Escrows
and
Litigation
Trusts
(Cost
$
–
)
...................................
1,378,715
Total
Long
Term
Investments
(Cost
$
8,858,572,762
)
.............................
8,603,930,461
a
a
a
a
a
Short
Term
Investments
0.7%
Principal
Amount
Municipal
Bonds
0.7%
Massachusetts
0.0%
†
k
Massachusetts
Health
&
Educational
Facilities
Authority
,
Baystate
Total
Home
Care,
Inc.
,
Revenue
,
2009
K-1
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
3.75
%
,
7/01/39
.
$
1,100,000
1,100,000
Minnesota
0.0%
†
k
City
of
Minneapolis
,
Fairview
Health
Services
Obligated
Group
,
Revenue
,
2018
C
,
Refunding
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
3.85
%
,
11/15/48
....
1,730,000
1,730,000
New
York
0.4%
k
City
of
New
York
,
GO
,
2015
F-6
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
3.8
%
,
6/01/44
1,600,000
1,600,000
GO
,
2020
B-3
,
Daily
VRDN
and
Put
,
3.9
%
,
10/01/46
.......................
18,835,000
18,835,000
k
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System
,
Revenue
,
2022
DD
,
Refunding
,
Daily
VRDN
and
Put
,
3.9
%
,
6/15/33
........................................................
8,470,000
8,470,000
Water
&
Sewer
System
,
Revenue
,
BB-1
A
,
SPA
State
Street
Bank
&
Trust
Co.
,
Daily
VRDN
and
Put
,
3.8
%
,
6/15/49
.......................................
600,000
600,000
29,505,000
North
Carolina
0.0%
†
k
Charlotte-Mecklenburg
Hospital
Authority
(The)
,
Atrium
Health
Obligated
Group
,
Revenue
,
2007
E
,
AGMC
Insured
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
3.75
%
,
1/15/44
.................................
300,000
300,000
Atrium
Health
Obligated
Group
,
Revenue
,
2018
H
,
SPA
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
3.7
%
,
1/15/48
..................................
260,000
260,000
560,000
Oregon
0.1%
k
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group
,
Revenue
,
2018
A
,
Refunding
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
3.7
%
,
8/01/34
..................................
7,400,000
7,400,000
PeaceHealth
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
3.75
%
,
8/01/34
.................................
395,000
395,000
7,795,000
Pennsylvania
0.2%
k
Delaware
County
Industrial
Development
Authority
,
United
Parcel
Service,
Inc.
,
Revenue
,
2015
,
Refunding
,
Daily
VRDN
and
Put
,
3.85
%
,
9/01/45
..............
15,335,000
15,335,000
k
General
Authority
of
Southcentral
Pennsylvania
,
WellSpan
Health
Obligated
Group
,
Revenue
,
2019
E
,
Refunding
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
3.8
%
,
6/01/35
2,200,000
2,200,000
17,535,000
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
Wisconsin
0.0%
†
k
Wisconsin
Health
&
Educational
Facilities
Authority
,
Froedtert
Health,
Inc.
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
Daily
VRDN
and
Put
,
3.8
%
,
4/01/35
.......
$
300,000
$
300,000
Total
Municipal
Bonds
(Cost
$
58,525,000
)
......................................
58,525,000
Total
Short
Term
Investments
(Cost
$
58,525,000
)
................................
58,525,000
a
Total
Investments
(Cost
$
8,917,097,762
)
99.5
%
..................................
$8,662,455,461
Other
Assets,
less
Liabilities
0.5
%
.............................................
47,553,827
Net
Assets
100.0%
...........................................................
$8,710,009,288
See
Abbreviations
on
page
59
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.
b
Non-income
producing.
c
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
d
See
Note
1(c)
regarding
senior
floating
rate
interests.
e
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
f
The
maturity
date
shown
represents
the
mandatory
put
date.
g
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
April
30,
2024,
the
aggregate
value
of
these
securities
was
$896,508,372,
representing
10.3%
of
net
assets.
h
The
coupon
rate
shown
represents
the
rate
at
period
end.
i
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
j
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
7.
k
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
Financial
Statements
Statement
of
Assets
and
Liabilities
April
30,
2024
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
47
Franklin
Federal
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$8,914,842,029
Cost
-
Non-controlled
affiliates
(Note
3f)
........................................................
2,255,733
Value
-
Unaffiliated
issuers
..................................................................
$8,660,491,698
Value
-
Non-controlled
affiliates
(Note
3f)
........................................................
1,963,763
Cash
....................................................................................
314,191
Receivables:
Investment
securities
sold
...................................................................
5,043,441
Capital
shares
sold
........................................................................
3,237,856
Interest
.................................................................................
114,485,370
Unrealized
appreciation
on
unfunded
commitments
(Note
1b)
..........................................
909,503
Total
assets
..........................................................................
8,786,445,822
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
52,011,500
Capital
shares
redeemed
...................................................................
15,930,104
Management
fees
.........................................................................
3,299,645
Distribution
fees
..........................................................................
884,508
Transfer
agent
fees
........................................................................
1,241,829
Trustees'
fees
and
expenses
.................................................................
281
Distributions
to
shareholders
.................................................................
2,118,697
Accrued
expenses
and
other
liabilities
...........................................................
949,970
Total
liabilities
.........................................................................
76,436,534
Net
assets,
at
value
.................................................................
$8,710,009,288
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$9,757,852,294
Total
distributable
earnings
(losses)
.............................................................
(1,047,843,006)
Net
assets,
at
value
.................................................................
$8,710,009,288
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
April
30,
2024
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
Franklin
Federal
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$1,968,263,897
Shares
outstanding
........................................................................
184,611,285
Net
asset
value
per
share
a,b
..................................................................
$10.66
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%
)
b
................................
$11.08
Class
A1:
Net
assets,
at
value
.......................................................................
$4,601,264,866
Shares
outstanding
........................................................................
431,549,454
Net
asset
value
per
share
a,b
..................................................................
$10.66
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%
)
b
................................
$11.08
Class
C:
Net
assets,
at
value
.......................................................................
$180,671,971
Shares
outstanding
........................................................................
16,958,504
Net
asset
value
and
maximum
offering
price
per
share
a,b
............................................
$10.65
Class
R6:
Net
assets,
at
value
.......................................................................
$824,024,271
Shares
outstanding
........................................................................
77,214,737
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$10.67
Advisor
Class:
Net
assets,
at
value
.......................................................................
$1,135,784,283
Shares
outstanding
........................................................................
106,403,967
Net
asset
value
and
maximum
offering
price
per
share
b
.............................................
$10.67
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
b
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Operations
for
the
year
ended
April
30,
2024
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
49
Franklin
Federal
Tax-
Free
Income
Fund
Investment
income:
Dividends:
Non-controlled
affiliates
(Note
3f)
.............................................................
$70,695
Interest:
Unaffiliated
issuers
........................................................................
383,386,732
Total
investment
income
...................................................................
383,457,427
Expenses:
Management
fees
(Note
3
a
)
...................................................................
40,235,027
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
4,853,650
Class
A1
...............................................................................
4,865,211
Class
C
................................................................................
1,361,483
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
1,193,201
Class
A1
...............................................................................
2,998,328
Class
C
................................................................................
129,503
Class
R6
...............................................................................
149,893
Advisor
Class
............................................................................
662,389
Custodian
fees
(Note
4)
......................................................................
48,879
Reports
to
shareholders
fees
..................................................................
263,626
Registration
and
filing
fees
....................................................................
396,898
Professional
fees
...........................................................................
744,549
Trustees'
fees
and
expenses
..................................................................
108,667
Other
....................................................................................
608,021
Total
expenses
.........................................................................
58,619,325
Expense
reductions
(Note
4)
...............................................................
(49,329)
Expenses
waived/paid
by
affiliates
(Note
3f
and
3g)
..............................................
(5,851)
Net
expenses
.........................................................................
58,564,145
Net
investment
income
................................................................
324,893,282
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(79,852,503)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
11,504,138
Non-controlled
affiliates
(Note
3f)
............................................................
(17,447)
Unfunded
commitment
s
(Note
1b)
.............................................................
909,503
Net
change
in
unrealized
appreciation
(depreciation)
............................................
12,396,194
Net
realized
and
unrealized
gain
(loss)
............................................................
(67,456,309)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$257,436,973
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
50
Franklin
Federal
Tax-Free
Income
Fund
Year
Ended
April
30,
2024
Year
Ended
April
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$324,893,282
$322,075,585
Net
realized
gain
(loss)
.................................................
(79,852,503)
(202,703,894)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
12,396,194
(53,053,291)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
257,436,973
66,318,400
Distributions
to
shareholders:
Class
A
.............................................................
(66,879,650)
(59,671,683)
Class
A1
............................................................
(174,734,353)
(185,449,220)
Class
C
.............................................................
(6,366,664)
(7,860,346)
Class
R6
............................................................
(31,965,222)
(27,609,822)
Advisor
Class
........................................................
(39,920,179)
(38,577,120)
Total
distributions
to
shareholders
..........................................
(319,866,068)
(319,168,191)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
40,419,438
67,070,974
Class
A1
............................................................
(580,112,407)
(892,032,423)
Class
C
.............................................................
(64,109,971)
(85,671,860)
Class
R6
............................................................
(113,909,215)
207,653,888
Advisor
Class
........................................................
136,583,996
(350,007,043)
Total
capital
share
transactions
............................................
(581,128,159)
(1,052,986,464)
Net
increase
(decrease)
in
net
assets
...................................
(643,557,254)
(1,305,836,255)
Net
assets:
Beginning
of
year
.......................................................
9,353,566,542
10,659,402,797
End
of
year
...........................................................
$8,710,009,288
$9,353,566,542
Franklin
Federal
Tax-Free
Income
Fund
51
franklintempleton.com
Annual
Report
Notes
to
Financial
Statements
1.
Organization
and
Significant
Accounting
Policies
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.
The Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Fund
offers five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
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
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
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.
Equity
securities
and
exchange
traded
funds listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the OTC
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,
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.
b.
Securities
Purchased
on
a
When-Issued,
Forward
Commitment or
Delayed
Delivery
Basis
The
Fund
may purchase
securities
on
a when-issued,
forward
commitment or
delayed
delivery basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities, it
may
sell
the
securities
before
the
settlement
date.
These
types
of
securities
may
be
considered
unfunded
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
52
franklintempleton.com
Annual
Report
and
the
Fund
may
be
obligated
to
perform
on
such
agreements
at
a
future
date.
Unfunded
commitments
are
marked
to
market
daily
and
any
unrealized
appreciation
or
depreciation
is
included
in
the
Statement
of
Assets
and
Liabilities
and
the
Statement
of
Operations.
At
April
30,
2024,
unfunded
commitments
were
as
follows:
c.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
Secured
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
d.
Income
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
April
30,
2024, the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
The
Fund
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Fund.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
net
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Fund
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Borrower
Unfunded
Commitment
Franklin
Federal
Tax-Free
Income
Fund
Puerto
Rico
Electric
Power
Authority,
Restructured
Power
Revenue
,
B-1,
6%,
7/01/41
$
3,809,333
B-2,
7.125%,
7/01/59
18,500,231
$22,309,564
1.
Organization
and
Significant
Accounting
Policies
(continued)
b.
Securities
Purchased
on
a
When-Issued,
Forward
Commitment or
Delayed
Delivery
Basis
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
53
franklintempleton.com
Annual
Report
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
h.
Guarantees
and
Indemnifications
Under
the Fund's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the
Fund against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Fund
that
have
not
yet
occurred.
Currently,
the Fund
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
April
30,
2024,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Year
Ended
April
30,
2024
Year
Ended
April
30,
2023
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
45,291,811
$479,825,027
80,664,051
$859,023,042
Shares
issued
in
reinvestment
of
distributions
..........
5,947,644
63,025,429
5,260,782
56,003,480
Shares
redeemed
...............................
(47,583,185)
(502,431,018)
(79,661,592)
(847,955,548)
Net
increase
(decrease)
..........................
3,656,270
$40,419,438
6,263,241
$67,070,974
Class
A1
Shares:
Shares
sold
...................................
9,207,147
$97,504,088
13,888,363
$147,952,934
Shares
issued
in
reinvestment
of
distributions
..........
14,621,101
154,894,071
15,422,978
164,226,746
Shares
redeemed
...............................
(78,628,347)
(832,510,566)
(113,136,532)
(1,204,212,103)
Net
increase
(decrease)
..........................
(54,800,099)
$(580,112,407)
(83,825,191)
$(892,032,423)
Class
C
Shares:
Shares
sold
...................................
1,616,526
$17,092,036
2,880,634
$30,648,561
Shares
issued
in
reinvestment
of
distributions
..........
574,477
6,078,985
702,806
7,478,018
Shares
redeemed
a
..............................
(8,263,354)
(87,280,992)
(11,633,559)
(123,798,439)
Net
increase
(decrease)
..........................
(6,072,351)
$(64,109,971)
(8,050,119)
$(85,671,860)
Class
R6
Shares:
Shares
sold
...................................
34,234,418
$352,818,204
43,587,106
$465,085,486
Shares
issued
in
reinvestment
of
distributions
..........
2,993,543
31,744,930
2,537,995
27,058,566
Shares
redeemed
...............................
(48,818,253)
(498,472,349)
(26,690,224)
(284,490,164)
Net
increase
(decrease)
..........................
(11,590,292)
$(113,909,215)
19,434,877
$207,653,888
1.
Organization
and
Significant
Accounting
Policies
(continued)
f.
Insurance
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
54
franklintempleton.com
Annual
Report
3
.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
year
ended
April
30,
2024,
the
gross
effective
investment
management
fee
rate
was 0.449%
of
the
Fund’s
average daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
Year
Ended
April
30,
2024
Year
Ended
April
30,
2023
Shares
Amount
Shares
Amount
Advisor
Class
Shares:
Shares
sold
...................................
68,214,785
$704,957,450
38,621,159
$412,560,439
Shares
issued
in
reinvestment
of
distributions
..........
3,481,166
36,923,548
3,165,413
33,745,340
Shares
redeemed
...............................
(58,321,729)
(605,297,002)
(74,724,075)
(796,312,822)
Net
increase
(decrease)
..........................
13,374,222
$136,583,996
(32,937,503)
$(350,007,043)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
55
franklintempleton.com
Annual
Report
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund's
Class
A
and
A1
reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plan,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund's
Class
C
compensation
distribution
plan,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
year:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. Effective
October
1,
2023,
the
fees
are based
on
a
fixed
margin
earned
by
Investor
Services
and
are allocated
to
the Fund
based
upon
relative
assets
and
relative
transactions.
Prior
to
October
1,
2023,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
transaction
based
fee. In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
year
ended
April
30,
2024,
the Fund
paid
transfer
agent
fees
as
noted
in
the
Statement of
Operations,
of
which
$1,878,583
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
April
30,
2024,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.10%
Class
C
....................................................................................
0.65%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$68,055
CDSC
retained
..............................................................................
$122,559
3
.
Transactions
with
Affiliates
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
56
franklintempleton.com
Annual
Report
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
of
the
Fund have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2024.
h.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
year
ended
April
30,
2024,
these
purchase
and
sale
transactions
aggregated
$348,366,072
and
$422,954,680,
respectively,
with
net
realized
losses
of
$1,732,631.
4.
Expense
Offset
Arrangement
The Fund has
previously
entered
into
an
arrangement
with
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
custodian
expenses.
During
the
year
ended
April
30,
2024,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2024,
the
capital
loss
carryforwards
were
as
follows:
aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Federal
Tax-Free
Income
Fund
Non-Controlled
Affiliates
Dividends
Franklin
Municipal
Green
Bond
ETF
...................
$1,981,210
$—
$—
$—
$(17,447)
$1,963,763
83,000
$70,695
Total
Affiliated
Securities
...
$1,981,210
$—
$—
$—
$(17,447)
$1,963,763
$70,695
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$306,930,191
Long
term
................................................................................
$495,950,869
Total
capital
loss
carryforwards
...............................................................
$802,881,060
a
a
Includes
$90,841,159
from
the
merged
Franklin
Florida
Tax-Free
Income
Fund,
Franklin
Kentucky
Tax-Free
Income
Fund
and
Franklin
Tennessee
Municipal
Bond
Fund,
which
may
be
carried
over
to
offset
future
capital
gains,
subject
to
certain
limitations.
3
.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
57
franklintempleton.com
Annual
Report
The
tax
character
of
distributions
paid
during
the
years
ended
April
30,
2024
and
2023
,
was
as
follows:
At
April
30,
2024,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
tax
exempt
income for
income
tax
purposes
were
as
follows:
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
year
ended
April
30,
2024,
aggregated
$1,352,103,136 and
$1,834,530,087,
respectively.
7.
Defaulted
Securities
The
Fund held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
April
30,
2024,
the
aggregate
value
of
these
securities was
$8,990,125 representing 0.1%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying Schedule
of
Investments.
8.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
January
31,
2025.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the
Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
year
ended
April
30,
2024,
the Fund
did
not
use
the
Global
Credit
Facility.
2024
2023
Distributions
paid
from:
Ordinary
income
..........................................................
$9,243,073
$1,211,144
Tax
exempt
income
........................................................
310,622,995
317,957,047
$319,866,068
$319,168,191
Cost
of
investments
..........................................................................
$8,915,071,949
Unrealized
appreciation
........................................................................
$188,916,464
Unrealized
depreciation
........................................................................
(441,532,952)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(252,616,488)
Distributable
earnings:
Undistributed
tax
exempt
income
.................................................................
$8,863,734
5.
Income
Taxes
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
58
franklintempleton.com
Annual
Report
9.
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.
A
summary
of
inputs
used
as
of
April
30,
2024,
in
valuing
the
Fund's assets carried
at
fair
value,
is
as
follows:
A
reconciliation
of
assets
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
year
.
10.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Level
1
Level
2
Level
3
Total
Franklin
Federal
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
........................
$
—
$
—
$
—
a
$
—
Management
Investment
Companies
.........
1,963,763
—
—
1,963,763
Corporate
Bonds
........................
—
—
34,256,079
34,256,079
Senior
Floating
Rate
Interests
...............
—
—
22,747,843
22,747,843
Municipal
Bonds
.........................
—
8,543,584,061
—
8,543,584,061
Escrows
and
Litigation
Trusts
...............
—
—
1,378,715
1,378,715
Short
Term
Investments
...................
—
$
58,525,000
—
$
58,525,000
Total
Investments
in
Securities
...........
$1,963,763
$8,602,109,061
$58,382,637
$8,662,455,461
Other
Financial
Instruments:
Unfunded
Commitments
..................
$—
$—
$909,503
$909,503
Total
Other
Financial
Instruments
.........
$—
$—
$909,503
$909,503
a
Includes
financial
instruments
determined
to
have
no
value.
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
59
franklintempleton.com
Annual
Report
Abbreviations
Cu
r
rency
USD
United
States
Dollar
Selected
Portfolio
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
BHAC
Berkshire
Hathaway
Assurance
Corp.
CME
Chicago
Mercantile
Exchange
COP
Certificate
of
Participation
ETF
Exchange-Traded
Fund
ETM
Escrowed
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
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
SPA
Standby
Purchase
Agreement
TSOF
Term
SOFR
Franklin
Federal
Tax-Free
Income
Fund
Report
of
Independent
Registered
Public
Accounting
Firm
60
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
and
Shareholders
of
Franklin
Federal
Tax-Free
Income
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Franklin
Federal
Tax-Free
Income
Fund
(the
"Fund")
as
of
April
30,
2024,
the
related
statement
of
operations
for
the
year
ended
April
30,
2024,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2024,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
April
30,
2024
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
April
30,
2024,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
April
30,
2024
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
April
30,
2024
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
April
30,
2024
by
correspondence
with
the
custodian,
transfer
agent,
brokers
and
agent
banks;
when
replies
were
not
received
from
brokers
or
agent
banks,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/PricewaterhouseCoopers
LLP
San
Francisco,
California
June
20,
2024
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Federal
Tax-Free
Income
Fund
Tax
Information
(unaudited)
61
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
April
30,
2024:
Pursuant
to:
Amount
Reported
Exempt-Interest
Dividends
Distributed
§852(b)(5)(A)
$310,622,995
Franklin
Federal
Tax-Free
Income
Fund
Board
Members
and
Officers
62
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1982
117
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
117
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
117
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Federal
Tax-Free
Income
Fund
63
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
2005
and
Lead
Independent
Trustee
since
2019
117
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-2023),
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
117
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
The
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
117
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Federal
Tax-Free
Income
Fund
64
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
107
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016)
and
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Gregory
E.
Johnson
2
(1961)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
2023
and
Trustee
since
2007
126
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
Rupert
H.
Johnson,
Jr.
3
(1940)
Trustee
Since
2013
117
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Ben
Barber
(1969)
Vice
President
Since
2020
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Advisers,
Inc.;
Director,
Municipal
Bonds;
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex;
and
formerly
,
Co-Head
of
Municipal
Bonds,
Goldman
Sachs
Asset
Management
(1999-2020).
Independent
Board
Members
(continued)
Franklin
Federal
Tax-Free
Income
Fund
65
franklintempleton.com
Annual
Report
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
1.
Information
is
for
the
calendar
year
ended
December
31,
2023,
unless
otherwise
noted.
We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Ted
P.
Becker
(1951)
Chief
Compliance
Officer
Since
June
2023
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Vice
President,
Global
Compliance
of
Franklin
Templeton
(since
2020);
Chief
Compliance
Officer
of
Franklin
Templeton
Fund
Adviser,
LLC
(since
2006);
Chief
Compliance
Officer
of
certain
funds
associated
with
Legg
Mason
&
Co.
or
its
affiliates
(since
2006);
formerly
,
Director
of
Global
Compliance
at
Legg
Mason
(2006-2020);
Managing
Director
of
Compliance
of
Legg
Mason
&
Co.
(2005-2020).
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
2021
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Christopher
Kings
(1974)
Chief
Executive
Officer
–
Finance
and
Administration
Since
January
2024
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
and
Secretary
Vice
President
since
2015
and
Secretary
since
June
2023
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Jeffrey
W.
White
(1971)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2024
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Financial
Officer,
Chief
Accounting
Officer
&
Treasurer
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Director
and
Assistant
Treasurer
within
Franklin
Templeton
Global
Fund
Tax
and
Fund
Administration
and
Financial
Reporting
(2017-2023).
Interested
Board
Members
and
Officers
(continued)
Franklin
Federal
Tax-Free
Income
Fund
66
franklintempleton.com
Annual
Report
2.
Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
3.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
a
major
shareholder
of
Resources,
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Interested
Board
Members
and
Officers
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
67
franklintempleton.com
Annual
Report
BOARD
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENTS
FRANKLIN
FEDERAL
TAX-FREE
INCOME
FUND
(Fund)
At
an
in-person
meeting
held
on
April
16,
2024
(Meeting),
the
Board
of
Trustees
(Board)
of
the
Fund,
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters,
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined,
through
the
exercise
of
its
business
judgment,
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-
party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund;
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
also
reviewed
and
considered
an
annual
report
on
payments
made
by
Franklin
Templeton
(FT)
or
the
Fund
to
financial
intermediaries,
as
well
as
a
memorandum
relating
to
third-
party
servicing
arrangements.
The
Board
acknowledged
the
ongoing
integration
of
the
Putnam
family
of
funds
into
the
FT
family
of
funds
and
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
continued
reassessment
of
the
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
as
well
as
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement,
including
its
initiative
to
create
a
new
enterprise-wide
artificial
intelligence
platform.
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
68
franklintempleton.com
Annual
Report
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2023.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
general
and
insured
municipal
debt
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe
and
in
the
first
(best)
and
second
quintiles
for
all
reporting
periods.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-year
period
was
above
the
median
and
in
the
second
quintile
of
its
Performance
Universe,
but
for
the
three-,
five-
and
10-year
periods
was
below
the
median
and
in
the
fourth
quintile
of
its
Performance
Universe.
The
Board
further
noted
management’s
view
regarding
the
income-
related
attributes
of
the
Fund
(e.g.
a
fund’s
investment
objective)
as
set
forth
in
the
Fund’s
registration
statement
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
these
attributes.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
transfer
agent
expenses;
underlying
fund
expenses;
Rule
12b-1
and
non-Rule
12b-1
service
fees;
and
other
non-
management
fees.
The
Board
also
noted
the
quarterly
and
annual
reports
it
receives
on
all
marketing
support
payments
made
by
FT
to
financial
intermediaries.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges,
and
the
actual
total
expense
ratio,
for
comparative
consistency,
was
shown
for
Class
A1
shares
for
the
Fund
and
for
Class
A
shares
and
Class
M
shares
for
the
other
funds
in
the
Expense
Group.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
an
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
11
other
general
and
insured
municipal
debt
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
above
the
median
and
in
the
fifth
quintile
(most
expensive)
of
its
Expense
Group,
but
its
actual
total
expense
ratio
was
below
the
median
and
in
the
first
quintile
(least
expensive)
of
its
Expense
Group.
The
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2023,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
an
independent
registered
public
accounting
firm
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
69
franklintempleton.com
Annual
Report
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
including
revenues
generated
from
transfer
agent
services,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
With
respect
to
possible
economies
of
scale,
the
Board
noted
the
existence
of
management
fee
breakpoints,
which
operate
generally
to
share
any
economies
of
scale
with
the
Fund’s
shareholders
by
reducing
the
Fund’s
effective
management
fees
as
the
Fund
grows
in
size.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
The
Board
noted
that
the
Fund
had
experienced
a
significant
decrease
in
assets
and
would
not
be
expected
to
demonstrate
additional
economies
of
scale
in
the
near
term,
but
concluded
that
to
the
extent
economies
of
scale
may
be
realized
by
the
Manager
and
its
affiliates,
the
Fund’s
management
fee
structure
provided
a
sharing
of
benefits
with
the
Fund
and
its
shareholders
as
the
Fund
grows.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Fund
files
a
complete
Schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
as
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
1116
A
06/24
©
2024
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
and
Shareholder
Letter
Franklin
Federal
Tax-Free
Income
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4.
Principal Accountant Fees and Services.
(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $70,290 for the fiscal year ended April 30, 2024 and $70,239 for the fiscal year ended April 30, 2023.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.
(c) Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $140,000 for the fiscal year ended April 30, 2024, and $70,000 for the fiscal year ended April 30, 2023. The services for which these fees were paid included global access to tax platform International Tax View.
(d) All Other Fees
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended April 30, 2024 and $4,227 for the fiscal year ended April 30, 2023. The services for which these fees were paid include review of materials provided to the fund Board in connection with the investment management contract renewal process.
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $158,426 for the fiscal year ended April 30, 2024 and $75,711 for the fiscal year ended April 30, 2023. The services for which these fees were paid included professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with license for employee development tool ProEdge, fees in connection with a license for accounting and business knowledge platform Viewpoint, professional fees relating to security counts and professional fees in connection with SOC 1 Reports.
(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
(i) pre-approval of all audit and audit related services;
(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;
(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $298,426 for the fiscal year ended April 30, 2024 and $149,938 for the fiscal year ended April 30, 2023.
(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) N/A
(j) N/A
Item 5. Audit Committee
of Listed Registrants. N/A
Item 6. Schedule of Investments. N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b)
Changes in Internal Controls. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Recovery of Erroneously Awarded Compensation.
(a) N/A
(b) N/A
Item 14. Exhibits.
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN FEDERAL TAX-FREE INCOME FUND
By S\CHRISTOPHER KINGS _________________
Christopher Kings
Chief Executive Officer - Finance and Administration
Date June 27, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By S\CHRISTOPHER KINGS _________________
Christopher Kings
Chief Executive Officer - Finance and Administration
Date June 27, 2024
By S\JEFFREY WHITE______________________
Jeffrey White
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date June 27, 2024