Franklin U.s. Government Money Fund N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-02605

Franklin U.S. Government Money 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: 6/30

Date of reporting period: 12/31/22

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

.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

U.S.

Government

Money

Fund

December

31,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Semiannual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

December

31,

2022,

the

U.S.

economy

showed

mixed

results

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

personal

consumption.

Reported

U.S.

gross

domestic

product

contracted

in

2022’s

second

quarter

due

to

declines

in

inventory

and

business

investment

but

grew

in

the

third

quarter

as

the

trade

deficit

narrowed

and

consumer

spending

continued

to

expand.

Inflation

eased

during

the

six-month

period

but

remained

high

due

to

pandemic-related

supply-chain

issues,

higher

energy

prices,

Russia’s

invasion

of

Ukraine

and

broader

price

pressures.

To

combat

high

inflation,

the

U.S.

Federal

Reserve

raised

the

federal

funds

rate

by

0.75%

in

the

months

of

July,

September

and

November,

and

by

0.50%

in

December

2022,

for

a

total

of

2.75%,

increasing

the

rate

from

1.75%

to

4.50%

during

the

period.

The

Federal

Reserve

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

agency

mortgage-backed

securities

holdings.

In

addition,

further

federal

funds

rate

increases

would

be

appropriate

to

sufficiently

tighten

monetary

policy

to

return

inflation

to

a

goal

of

2%.

Franklin

U.S.

Government

Money

Fund’s

semiannual

report

includes

more

detail

about

prevailing

conditions

during

the

period.

In

addition,

you

will

find

performance

data,

financial

information

and

a

discussion

from

the

portfolio

manager.

As

always,

we

recommend

investors

consult

their

financial

professionals

and

review

their

financial

plan

to

design

a

long-term

strategy

and

portfolio

allocation

that

meet

their

individual

needs,

goals

and

risk

tolerance.

We

firmly

believe

most

people

benefit

from

professional

advice

and

that

advice

is

invaluable

as

investors

navigate

current

market

conditions.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

assisting

you

or

your

professional

advisor

on

your

future

investment

plans.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

U.S.

Government

Money

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

December

31,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Franklin

U.S.

Government

Money

Fund

3

Performance

Summary

5

Your

Fund’s

Expenses

6

Financial

Highlights

and

Schedule

of

Investments

7

Financial

Statements

12

Notes

to

Financial

Statements

15

The

Money

Market

Portfolios

21

Shareholder

Information

31

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMI

ANNUAL

REPORT

Franklin

U.S.

Government

Money

Fund

This

semiannual

report

for

Franklin

U.S.

Government

Money

Fund

covers

the

period

ended

December

31,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

provide

investors

with

as

high

a

level

of

current

income

as

is

consistent

with

the

preservation

of

shareholders’

capital

and

liquidity

by

investing

through

The

U.S.

Government

Money

Market

Portfolio

(Master

Portfolio)

at

least

99.5%

of

its

total

assets

in

government

securities,

cash

and

repurchase

agreements

collateralized

fully

by

government

securities

or

cash.

1

The

Fund

also

tries

to

maintain

a

stable

$1.00

share

price.

An

investment

in

the

Fund

is

not

insured

or

guaranteed

by

the

Federal

Deposit

Insurance

Corporation

or

any

other

government

agency

or

institution.

Although

the

Fund

seeks

to

preserve

the

value

of

your

investment

at

$1.00

per

share,

it

is

possible

to

lose

money

by

investing

in

the

Fund.

The

Fund’s

sponsor

has

no

legal

obligation

to

provide

financial

support

to

the

Fund,

and

you

should

not

expect

that

the

sponsor

will

provide

financial

support

to

the

Fund

at

any

time.

Performance

Overview

The

Fund’s

Class

A

share’s

seven-day

effective

yield

increased

from

0.73%

on

June

30,

2022,

to

3.40%

on

December

31,

2022,

as

shown

in

the

Performance

Summary

on

page

5

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

will

fluctuate.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

The

U.S.

bond

market,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-2.97%

total

return

for

the

six

months

ended

December

31,

2022.

2

High

inflation

amid

a

strong

labor

market

led

to

significantly

tighter

monetary

policy,

reducing

the

value

of

most

bonds.

While

interest

rates

increased

along

the

entire

yield

curve

(yields

for

all

Treasury

maturities),

relatively

large

increases

in

shorter-term

interest

rates

led

the

yield

curve

to

invert

during

the

reporting

period

as

investors

became

increasingly

concerned

about

the

economic

outlook.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

continued

to

increase

the

federal

funds

target

rate,

with

large

increases

at

four

different

meetings

during

the

period.

At

period-end,

the

federal

funds

target

rate

stood

at

a

range

of

4.25%–4.50%,

the

highest

since

2007.

The

Fed

noted

in

its

December

2022

meeting

that

inflation

remained

elevated

amid

robust

job

growth

and

low

unemployment.

In

order

to

achieve

its

goal

of

2%

long-run

inflation,

the

Fed

stated

it

anticipates

making

additional

increases

to

the

federal

funds

target

rate.

Furthermore,

the

Fed

indicated

it

would

continue

to

reduce

its

U.S.

Treasury

(UST)

and

agency

debt

and

mortgage-backed

security

holdings.

UST

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-3.66%

total

return

for

the

six-month

period.

2

The

10-year

UST

yield

(which

moves

inversely

to

price)

rose

amid

high

inflation

and

the

Fed’s

tightening

monetary

stance.

Mortgage-backed

securities

(MBS),

as

measured

by

the

Bloomberg

U.S.

MBS

Index,

posted

a

-3.32%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

two

decades.

2

Corporate

bond

prices

were

mixed,

as

higher

yields

attracted

investors

despite

persistent

inflation

and

concerns

about

the

impact

of

elevated

interest

rates

on

corporate

profits

and

borrowing

costs.

Corporate

yield

spreads,

a

measure

of

the

difference

in

yields

between

corporate

bonds

and

similarly-dated

USTs,

declined

slightly

but

remained

elevated

compared

to

pre-pandemic

levels.

In

this

environment,

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Investment

Grade

Index,

posted

Portfolio

Composition

12/31/22

%

of

Total

Net

Assets

U.S.

Government

and

Agency

Securities

68.0%

Repurchase

Agreements

31.5%

Other

Net

Assets

0.5%

1.

Although

U.S.

government-sponsored

entities

may

be

chartered

by

acts

of

Congress,

their

securities

are

neither

issued

nor

guaranteed

by

the

U.S.

government.

Please

see

the

Fund’s

prospectus

for

a

detailed

discussion

regarding

various

levels

of

credit

support

for

government

agency

or

instrumentality

securities.

The

Fund’s

yield

and

share

price

are

not

guaranteed

and

will

vary

with

market

conditions.

2.

Source:

Morningstar.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

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

11

.

Franklin

U.S.

Government

Money

Fund

4

franklintempleton.com

Semiannual

Report

a

-1.61%

total

return.

2

However,

high-yield

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

High

Yield

Index,

posted

a

+3.50%

total

return

amid

growing

investor

interest.

2

Investment

Strategy

We

seek

to

invest,

through

the

Master

Portfolio,

at

least

99.5%

of

the

Fund’s

total

assets

in

U.S.

government

securities,

cash

and

repurchase

agreements

collateralized

fully

by

government

securities

or

cash.

We

only

buy

securities

that

we

determine

present

minimal

credit

risks.

We

maintain

a

dollar-weighted

average

portfolio

maturity

of

60

calendar

days

or

less

and

a

dollar-weighted

average

life

for

its

portfolio

of

120

calendar

days

or

less,

and

we

only

buy

securities

that

mature

or

are

deemed

to

mature

in

397

calendar

days

or

less.

Manager’s

Discussion

The

Fed

increased

its

target

range

for

the

federal

funds

rate

from

1.50%-1.75%

to

4.25%-4.50%

during

the

six-month

period.

Money

market

yields

increased

throughout

the

period

in

response

to

the

Fed’s

significant

increases

to

its

key

rate.

We

continued

to

invest

the

Portfolio’s

assets

in

high-quality,

short-term

securities.

We

appreciate

your

support,

welcome

new

shareholders

and

look

forward

to

serving

your

investment

needs

in

the

years

ahead.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

December

31,

2022,

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,

country,

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.

Performance

Summary

as

of

December

31,

2022

Franklin

U.S.

Government

Money

Fund

5

franklintempleton.com

Semiannual

Report

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

will

fluctuate.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

voluntary

fee

waivers,

expense

caps

and/or

reimbursements.

Voluntary

waivers

may

be

modified

or

discontinued

at

any

time

without

notice.

There

is

no

guarantee

the

Fund

will

be

able

to

avoid

a

negative

yield.

2.

The

seven-day

effective

yield

assumes

compounding

of

daily

dividends,

if

any.

3.

The

figure

is

as

stated

in

the

Fund’s

current

prospectus,

does

not

include

the

voluntary

fee

waiver,

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.

Annualized

and

effective

yields

are

for

the

seven-day

period

ended

12/31/22.

The

Fund’s

average

weighted

life

was

50

days

and

the

Fund’s

average

weighted

maturity

was

25

days.

Yield

reflects

Fund

expenses

and

fluctuations

in

interest

rates

on

Portfolio

investments.

Seven-Day

Annualized

Yield

1

Share

Class

(Symbol)

Seven-Day

Effective

Yield

1,2

(with

fee

waiver)

(without

fee

waiver)

A

(FMFXX)

3.40%

3.34%

3.24%

Total

Annual

Operating

Expenses

3

Share

Class

A

0.53%

Your

Fund’s

Expenses

Franklin

U.S.

Government

Money

Fund

6

franklintempleton.com

Semiannual

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.

1.

Expenses

are

equal

to

the

annualized

expense

ratio,

which

includes

the

net

expenses

incurred

by

the

Portfolio,

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

184/365

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

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,011.50

$2.59

$1,022.63

$2.60

0.51%

C

$1,000

$1,008.20

$5.87

$1,019.36

$5.90

1.16%

R

$1,000

$1,009.00

$5.11

$1,020.11

$5.14

1.01%

R6

$1,000

$1,011.80

$2.33

$1,022.89

$2.35

0.46%

Franklin

U.S.

Government

Money

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

7

a

Six

Months

Ended

December

31,

2022

(unaudited)

Year

Ended

June

30,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$1.00

$1.00

$1.00

$1.00

$1.00

$1.00

Income

from

investment

operations:

Net

investment

income

..............

0.011

0.001

—

a

0.010

0.017

0.007

Less

distributions

from:

Net

investment

income

..............

(0.011)

(0.001)

(—)

a

(0.010)

(0.017)

(0.007)

Net

asset

value,

end

of

period

..........

$1.00

$1.00

$1.00

$1.00

$1.00

$1.00

Total

return

b

.......................

1.15%

0.06%

—%

c

0.96%

1.70%

0.74%

Ratios

to

average

net

assets

d,e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.51%

0.53%

0.52%

0.55%

0.55%

0.57%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.51%

0.19%

0.09%

0.47%

0.54%

0.55%

Net

investment

income

...............

2.29%

0.08%

—%

c

0.87%

1.71%

0.77%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,712,605

$4,379,075

$3,271,640

$3,548,308

$2,711,322

$2,724,519

a

Amount

rounds

to

less

than

$0.001

per

share.

b

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

c

Rounds

to

less

than

0.01%.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Ratios

include

the

Fund’s

share

of

the

Portfolio’s

allocated

net

expenses.

Franklin

U.S.

Government

Money

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

a

Six

Months

Ended

December

31,

2022

(unaudited)

Year

Ended

June

30,

Year

Ended

June

30,

2020

a

2022

2021

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..............................

$1.00

$1.00

$1.00

$1.00

Income

from

investment

operations:

Net

investment

income

.......................................

0.008

—

b

—

b

0.002

Less

distributions

from:

Net

investment

income

.......................................

(0.008)

(—)

b

(—)

b

(0.002)

Net

asset

value,

end

of

period

...................................

$1.00

$1.00

$1.00

$1.00

Total

return

c

................................................

0.82%

—%

d

—%

d

0.19%

Ratios

to

average

net

assets

e,f

Expenses

before

waiver

and

payments

by

affiliates

...................

1.16%

0.59%

0.52%

1.15%

Expenses

net

of

waiver

and

payments

by

affiliates

....................

1.16%

0.24%

0.09%

0.76%

Net

investment

income

........................................

1.61%

0.01%

—%

d

0.21%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.................................

$174,988

$173,327

$174,336

$211,455

a

For

the

period

October

15,

2019

(effective

date)

to

June

30,

2020.

b

Amount

rounds

to

less

than

$0.001

per

share.

c

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

d

Rounds

to

less

than

0.01%.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Ratios

include

the

Fund’s

share

of

the

Portfolio’s

allocated

net

expenses.

Franklin

U.S.

Government

Money

Fund

Financial

Highlights

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

December

31,

2022

(unaudited)

Year

Ended

June

30,

Year

Ended

June

30,

2020

a

2022

2021

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

..............................

$1.00

$1.00

$1.00

$1.00

Income

from

investment

operations:

Net

investment

income

.......................................

0.009

—

b

—

b

0.002

Less

distributions

from:

Net

investment

income

.......................................

(0.009)

(—)

b

(—)

b

(0.002)

Net

asset

value,

end

of

period

...................................

$1.00

$1.00

$1.00

$1.00

Total

return

c

................................................

0.90%

0.01%

—%

d

0.25%

Ratios

to

average

net

assets

e,f

Expenses

before

waiver

and

payments

by

affiliates

...................

1.01%

0.58%

0.52%

1.06%

Expenses

net

of

waiver

and

payments

by

affiliates

....................

1.01%

0.23%

0.09%

0.75%

Net

investment

income

........................................

1.74%

0.02%

—%

d

0.33%

Supplemental

data

Net

assets,

end

of

period

(000’s)

.................................

$7,199

$8,345

$6,006

$5,983

a

For

the

period

October

15,

2019

(effective

date)

to

June

30,

2020.

b

Amount

rounds

to

less

than

$0.001

per

share.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Rounds

to

less

than

0.01%.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Ratios

include

the

Fund’s

share

of

the

Portfolio’s

allocated

net

expenses.

Franklin

U.S.

Government

Money

Fund

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

December

31,

2022

(unaudited)

Year

Ended

June

30,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$1.00

$1.00

$1.00

$1.00

$1.00

$1.00

Income

from

investment

operations:

Net

investment

income

..............

0.012

0.001

—

a

0.010

0.018

0.008

Less

distributions

from:

Net

investment

income

..............

(0.012)

(0.001)

(—)

a

(0.010)

(0.018)

(0.008)

Net

asset

value,

end

of

period

..........

$1.00

$1.00

$1.00

$1.00

$1.00

$1.00

Total

return

b

.......................

1.18%

0.06%

—%

c

1.02%

1.77%

0.81%

Ratios

to

average

net

assets

d,e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.49%

0.50%

0.51%

0.54%

0.60%

0.48%

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.46%

0.17%

0.09%

0.42%

0.48%

0.48%

f

Net

investment

income

...............

2.31%

0.07%

—%

c

0.89%

1.77%

0.84%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$98,577

$105,446

$84,445

$40,838

$22,805

$6,904

a

Amount

rounds

to

less

than

$0.001

per

share.

b

Total

return

is

not

annualized

for

periods

less

than

one

year.

c

Rounds

to

less

than

0.01%.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Ratios

include

the

Fund’s

share

of

the

Portfolio’s

allocated

net

expenses.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

U.S.

Government

Money

Fund

Schedule

of

Investments

(unaudited),

December

31,

2022

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

a

Shares

a

Value

a

Money

Market

Funds

99.8%

a

U.S.

Government

Money

Market

Portfolio

(The),

4.063%

......................

4,984,066,257

$

4,984,066,257

Total

Money

Market

Funds

(Cost

$4,984,066,257)

................................

4,984,066,257

Other

Assets,

less

Liabilities

0.2%

.............................................

9,302,908

Net

Assets

100.0%

...........................................................

$4,993,369,165

a

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

U.S.

Government

Money

Fund

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

Franklin

U.S.

Government

Money

Fund

Assets:

Investment

in

affiliated

Portfolio,

at

value

and

cost

..................................................

$4,984,066,257

Receivables:

Capital

shares

sold

........................................................................

23,390,759

Total

assets

5,007,457,016

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

12,203,824

Administrative

fees

........................................................................

1,182,566

Trustees'

fees

and

expenses

.................................................................

2,666

Distributions

to

shareholders

.................................................................

303,713

Accrued

expenses

and

other

liabilities

...........................................................

395,082

Total

liabilities

.........................................................................

14,087,851

Net

assets,

at

value

$4,993,369,165

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$4,993,369,263

Total

distributable

earnings

(losses)

.............................................................

(98)

Net

assets,

at

value

.................................................................

$4,993,369,165

Franklin

U.S.

Government

Money

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$4,712,605,421

Shares

outstanding

........................................................................

4,712,690,339

Net

asset

value

per

share

a

..................................................................

$1.00

Class

C:

Net

assets,

at

value

.......................................................................

$174,988,243

Shares

outstanding

........................................................................

174,993,719

Net

asset

value

per

share

a

..................................................................

$1.00

Class

R:

Net

assets,

at

value

.......................................................................

$7,198,744

Shares

outstanding

........................................................................

7,198,906

Net

asset

value

per

share

...................................................................

$1.00

Class

R6:

Net

assets,

at

value

.......................................................................

$98,576,757

Shares

outstanding

........................................................................

98,576,758

Net

asset

value

per

share

...................................................................

$1.00

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

U.S.

Government

Money

Fund

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

December

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

Franklin

U.S.

Government

Money

Fund

Investment

income:

Dividends

from

affiliated

Portfolio

...............................................................

$63,238,334

Expenses:

Administrative

fees

(Note

3a)

..................................................................

6,804,298

Distribution

fees:

(Note

3b)

    Class

C

................................................................................

551,229

    Class

R

................................................................................

20,376

Transfer

agent

fees:

(Note

3d)

    Class

A

................................................................................

1,449,216

    Class

C

................................................................................

54,848

    Class

R

................................................................................

2,641

    Class

R6

...............................................................................

22,316

Reports

to

shareholders

fees

..................................................................

81,044

Registration

and

filing

fees

....................................................................

89,506

Professional

fees

...........................................................................

27,141

Trustees'

fees

and

expenses

..................................................................

27,818

Other

....................................................................................

43,603

Total

expenses

.........................................................................

9,174,036

Expenses

waived/paid

by

affiliates

(Note

3e)

...................................................

(14,460)

Net

expenses

.........................................................................

9,159,576

Net

investment

income

................................................................

54,078,758

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$54,078,758

Franklin

U.S.

Government

Money

Fund

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

Franklin

U.S.

Government

Money

Fund

Six

Months

Ended

December

31,

2022

(unaudited)

Year

Ended

June

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$54,078,758

$2,815,259

Distributions

to

shareholders:

Class

A

.............................................................

(51,501,182)

(2,721,543)

Class

C

.............................................................

(1,365,315)

(17,575)

Class

R

.............................................................

(71,033)

(1,370)

Class

R6

............................................................

(1,141,326)

(74,799)

Total

distributions

to

shareholders

..........................................

(54,078,856)

(2,815,287)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

333,530,638

1,107,435,119

Class

C

.............................................................

1,660,944

(1,008,828)

Class

R

.............................................................

(1,146,070)

2,338,926

Class

R6

............................................................

(6,869,468)

21,001,254

Total

capital

share

transactions

............................................

327,176,044

1,129,766,471

Net

increase

(decrease)

in

net

assets

...................................

327,175,946

1,129,766,443

Net

assets:

Beginning

of

period

.....................................................

4,666,193,219

3,536,426,776

End

of

period

..........................................................

$4,993,369,165

$4,666,193,219

Franklin

U.S.

Government

Money

Fund

15

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

1.

Organization

and

Significant

Accounting

Policies

Franklin

U.S.

Government

Money

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

Standard

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

four

classes

of

shares:

Class

A,

Class

C,

Class

R

and

Class

R6.

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

Fund

invests

substantially

all

of

its

assets

in The

U.S.

Government

Money

Market

Portfolio

(Portfolio),

which

is

registered

under

the

1940

Act

as

an

open-end

management

investment

company

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

GAAP.

The

accounting

policies

of

the

Portfolio,

including

the

Portfolio's

security

valuation

policies,

will

directly

affect

the

recorded

value

of

the

Fund's

investment

in

the

Portfolio.

The

financial

statements

of

the

Portfolio,

including

the

Schedule

of

Investments,

are

included

elsewhere

in

this

report

and

should

be

read

in

conjunction

with

the

Fund's

financial

statements. 

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund

holds

Portfolio

shares

that

are

valued

at

the

closing

net

asset

value

of

the

Portfolio.

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).

At

December

31,

2022,

the

Fund

owned

44.2%

of

the

Portfolio.

b.

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

taxable

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

December

31,

2022,

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. 

c.

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.

Income

received

from

the

Portfolio

and

estimated

expenses

are

accrued

daily.

Dividends

from

net

investment

income

are

normally

declared

and

distributed

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.

Net

investment

income,

excluding

class

specific

expenses,

is

allocated

daily

to

each

class

of

shares

based

upon

the

relative

value

of

the

settled

shares

of

each

class.

Realized

and

unrealized

gains

and

losses

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.

Franklin

U.S.

Government

Money

Fund

Notes

to

Financial

Statements

(unaudited)

16

franklintempleton.com

Semiannual

Report

d.

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.

e.

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

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

at

$1.00

per

share

were

as

follows:

Six

Months

Ended

December

31,

2022

Year

Ended

June

30,

2022

Class

A

Shares:

Shares

sold

a

...................................

$1,756,638,123

$3,632,384,705

Shares

issued

in

reinvestment

of

distributions

..........

50,571,024

2,673,812

Shares

redeemed

...............................

(1,473,678,509)

(2,527,623,398)

Net

increase

(decrease)

..........................

$333,530,638

$1,107,435,119

Class

C

Shares:

Shares

sold

...................................

$68,943,279

$154,497,506

Shares

issued

in

reinvestment

of

distributions

..........

1,359,178

17,501

Shares

redeemed

a

..............................

(68,641,513)

(155,523,835)

Net

increase

(decrease)

..........................

$1,660,944

$(1,008,828)

Class

R

Shares:

Shares

sold

...................................

$1,505,973

$10,967,537

Shares

issued

in

reinvestment

of

distributions

..........

69,891

1,343

Shares

redeemed

...............................

(2,721,934)

(8,629,954)

Net

increase

(decrease)

..........................

$(1,146,070)

$2,338,926

Class

R6

Shares:

Shares

sold

...................................

$33,797,119

$120,620,976

Shares

issued

in

reinvestment

of

distributions

..........

920,895

58,151

Shares

redeemed

...............................

(41,587,482)

(99,677,873)

Net

increase

(decrease)

..........................

$(6,869,468)

$21,001,254

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

U.S.

Government

Money

Fund

Notes

to

Financial

Statements

(unaudited)

17

franklintempleton.com

Semiannual

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,

directors,

and/or

trustees

of

the

Portfolio

and

of

the

following

subsidiaries:

a.

Administrative

Fees

The

Fund

pays

an

administrative

fee

to

FT

Services

based

on

the

Fund's

average

daily

net

assets

as

follows:

For

the

period

ended

December

31,

2022,

the

annualized

gross

effective

administrative

fee

rate

was

0.285%

of

the

Fund’s

average

daily

net

assets.

b.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

A

and

Class

R6

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

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

for

each

class.

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:

c.

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:

d.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

Subsidiary

Affiliation

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

0.455%

Up

to

and

including

$100

million

0.330%

Over

$100

million,

up

to

and

including

$250

million

0.280%

In

excess

of

$250

million

Class

C

....................................................................................

0.65%

Class

R

....................................................................................

0.50%

CDSC

retained

..............................................................................

$311,229

Franklin

U.S.

Government

Money

Fund

Notes

to

Financial

Statements

(unaudited)

18

franklintempleton.com

Semiannual

Report

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

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

December

31,

2022,

the

Fund

paid

transfer

agent

fees

of

$1,529,021,

of

which

$1,247,016

was

retained

by

Investor

Services.

e.

Waiver

and

Expense

Reimbursements

In

efforts

to

maintain

a

minimum

1

basis

point

annualized

yield,

FT

Services,

Distributors

and

Investor

Services

have

voluntarily

agreed

to

waive

or

limit

their

respective

fees,

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

the

Fund

and

if

necessary,

make

a

capital

infusion

into

the

Fund.

These

waivers,

expense

reimbursements

and

capital

infusions

are

voluntary

and

may

be

modified

or

discontinued

by

FT

Services,

Distributors

or

Investor

Services

at

any

time,

and

without

further

notice.

Total

expenses

waived

or

paid

are

not

subject

to

reimbursement

by

the

Fund

subsequent

to

the

Fund's

fiscal

year

end.

There

is

no

guarantee

that

the

Fund

will

be

able

to

maintain

a

1

basis

point

yield.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.02%

based

on

the

average

net

assets

of

the

class

until

October

31,

2023.

f.

Other

Affiliated

Transactions

At

December

31,

2022,

an

interested

board

member

owned

22.6%

of

the

Fund's

outstanding

shares.

4.

Income

Taxes

At

December

31,

2022,

the

cost

of

investments

for

book

and

income

tax

purposes

was

the

same.

5.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

6.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

7.

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:

3.

Transactions

with

Affiliates

(continued)

d.

Transfer

Agent

Fees

(continued)

Franklin

U.S.

Government

Money

Fund

Notes

to

Financial

Statements

(unaudited)

19

franklintempleton.com

Semiannual

Report

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

December

31,

2022,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

1

inputs.

8.

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.

7.

Fair

Value

Measurements

(continued)

Your

Fund’s

Expenses

The

U.S.

Government

Money

Market

Portfolio

20

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions,

if

applicable;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

if

applicable,

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”.

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.

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

184/365

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)

Beginning

Account

Value

7/1/22

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

Ending

Account

Value

12/31/22

Expenses

Paid

During

Period

7/1/22–12/31/22

1,2

a

Annualized

Expense

Ratio

2

$1,000

$1,013.60

$0.78

$1,024.43

$0.78

0.15%

The

Money

Market

Portfolios

Financial

Highlights

The

U.S.

Government

Money

Market

Portfolio

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

Six

Months

Ended

December

31,

2022

(unaudited)

Year

Ended

June

30,

2022

2021

2020

2019

2018

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$1.00

$1.00

$1.00

$1.00

$1.00

$1.00

Income

from

investment

operations:

Net

investment

income

..............

0.013

0.001

—

a

0.013

0.021

0.011

Net

realized

and

unrealized

gains

(losses)

a

........................

—

—

(—)

—

—

(—)

Total

from

investment

operations

........

0.013

0.001

—

a

0.013

0.021

0.011

Less

distributions

from:

Net

investment

income

..............

(0.013)

(0.001)

(—)

a

(0.013)

(0.021)

(0.011)

Net

asset

value,

end

of

period

..........

$1.00

$1.00

$1.00

$1.00

$1.00

$1.00

Total

return

b

.......................

1.36%

0.14%

0.01%

1.29%

2.10%

1.15%

Ratios

to

average

net

assets

c

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.15%

0.15%

0.15%

0.15%

0.15%

0.15%

Expenses

net

of

waiver

and

payments

by

affiliates

d

..........................

0.15%

0.10%

0.09%

0.15%

0.15%

0.15%

Net

investment

income

...............

2.64%

0.13%

—%

e

1.33%

2.09%

1.15%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$11,281,243

$11,102,314

$11,811,420

$18,381,976

$23,218,541

$23,700,037

a

Amount

rounds

to

less

than

$0.001

per

share.

b

Total

return

is

not

annualized

for

periods

less

than

one

year.

c

Ratios

are

annualized

for

periods

less

than

one

year.

d

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

e

Rounds

to

less

than

0.01%.

The

Money

Market

Portfolios

Schedule

of

Investments

(unaudited),

December

31,

2022

The

U.S.

Government

Money

Market

Portfolio

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Principal

Amount

a

Value

U.S.

Government

and

Agency

Securities

68.0%

a

FFCB

,

FRN,

4.34%,

(SOFR

+

0.04%),

3/10/23

.................................

$

14,000,000

$

14,000,000

FRN,

4.31%,

(SOFR

+

0.01%),

6/07/23

.................................

65,000,000

65,000,000

FRN,

4.355%,

(SOFR

+

0.055%),

8/03/23

...............................

70,000,000

69,998,967

FRN,

4.34%,

(SOFR

+

0.04%),

2/05/24

.................................

10,000,000

10,000,000

FRN,

4.34%,

(SOFR

+

0.04%),

3/18/24

.................................

65,000,000

65,000,000

FRN,

4.35%,

(SOFR

+

0.05%),

5/09/24

.................................

54,900,000

54,900,000

FRN,

4.34%,

(SOFR

+

0.04%),

5/15/24

.................................

60,000,000

60,000,000

FRN,

4.345%,

(SOFR

+

0.045%),

5/24/24

...............................

25,000,000

25,000,000

FRN,

4.35%,

(SOFR

+

0.05%),

6/26/24

.................................

100,000,000

100,000,000

FRN,

4.395%,

(SOFR

+

0.095%),

7/18/24

...............................

20,000,000

20,000,000

FRN,

4.49%,

(SOFR

+

0.19%),

11/25/24

.................................

30,000,000

30,000,000

FRN,

4.5%,

(SOFR

+

0.2%),

12/05/24

..................................

10,000,000

10,000,000

523,898,967

FHLB

,

b

1/04/23

.........................................................

252,100,000

252,022,824

b

1/06/23

.........................................................

211,800,000

211,692,053

b

1/11/23

.........................................................

180,000,000

179,801,000

b

1/12/23

.........................................................

73,130,000

73,038,831

b

1/18/23

.........................................................

332,900,000

332,271,044

b

1/20/23

.........................................................

200,000,000

199,579,889

b

1/25/23

.........................................................

392,000,000

390,932,797

b

1/26/23

.........................................................

20,657,000

20,598,185

b

2/01/23

.........................................................

220,000,000

219,222,761

b

2/03/23

.........................................................

44,900,000

44,731,045

b

2/07/23

.........................................................

100,000,000

99,573,986

b

2/10/23

.........................................................

350,000,000

348,365,778

b

2/15/23

.........................................................

200,000,000

198,946,250

b

2/17/23

.........................................................

206,850,000

205,705,478

b

2/22/23

.........................................................

388,000,000

385,567,758

b

2/24/23

.........................................................

143,000,000

142,061,777

b

3/01/23

.........................................................

197,000,000

195,589,743

b

3/14/23

.........................................................

45,793,000

45,390,021

b

3/15/23

.........................................................

34,800,000

34,489,507

b

3/17/23

.........................................................

25,000,000

24,770,312

b

3/29/23

.........................................................

193,000,000

190,908,121

b

3/31/23

.........................................................

195,000,000

192,841,231

b

6/14/23

.........................................................

11,000,000

10,769,489

a

FRN,

4.33%,

(SOFR

+

0.03%),

1/19/23

.................................

145,000,000

145,000,000

a

FRN,

4.32%,

(SOFR

+

0.02%),

1/23/23

.................................

45,000,000

45,000,000

a

FRN,

4.34%,

(SOFR

+

0.04%),

2/10/23

.................................

94,900,000

94,900,000

a

FRN,

4.345%,

(SOFR

+

0.045%),

2/23/23

...............................

130,000,000

130,000,000

a

FRN,

4.33%,

(SOFR

+

0.03%),

3/21/23

.................................

112,000,000

112,000,000

a

FRN,

4.37%,

(SOFR

+

0.07%),

3/27/23

.................................

7,000,000

7,000,000

a

FRN,

4.34%,

(SOFR

+

0.04%),

6/05/23

.................................

94,000,000

94,000,000

a

FRN,

4.4%,

(SOFR

+

0.1%),

9/21/23

...................................

100,000,000

100,000,000

4,726,769,880

b

U.S.

Treasury

Bills

,

1/03/23

.........................................................

160,000,000

159,967,694

1/10/23

.........................................................

308,005,000

307,712,295

1/17/23

.........................................................

245,000,000

244,571,867

1/19/23

.........................................................

94,950,000

94,765,685

1/24/23

.........................................................

139,950,000

139,582,068

1/26/23

.........................................................

90,000,000

89,750,000

2/02/23

.........................................................

90,000,000

89,674,400

2/09/23

.........................................................

189,900,000

189,052,413

The

Money

Market

Portfolios

Schedule

of

Investments

(unaudited)

The

U.S.

Government

Money

Market

Portfolio

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

See

abbreviations

on

page

30

.

a

a

Principal

Amount

a

Value

U.S.

Government

and

Agency

Securities

(continued)

b

U.S.

Treasury

Bills,

(continued)

2/16/23

.........................................................

$

244,950,000

$

243,939,575

2/23/23

.........................................................

95,000,000

94,409,786

3/02/23

.........................................................

99,900,000

99,186,547

3/16/23

.........................................................

94,950,000

94,273,719

3/21/23

.........................................................

100,000,000

99,052,000

3/30/23

.........................................................

293,000,000

290,006,656

4/18/23

.........................................................

94,000,000

92,759,513

6/15/23

.........................................................

95,000,000

92,984,021

2,421,688,239

Total

U.S.

Government

and

Agency

Securities

(Cost

$7,672,357,086)

..............

7,672,357,086

c

Repurchase

Agreements

31.5%

Bank

of

New

York

Mellon

Corp.

(The),

4.22%,

1/03/23

(Maturity

Value

$400,187,556)

Collateralized

by

U.S.

Treasury

Notes,

1.625%

-

3.875%,

11/30/27

-

5/15/31;

and

U.S.

Treasury

Note,

Index

Linked,

0.125%,

1/15/30

(valued

at

$408,000,008)

.....

400,000,000

400,000,000

BNP

Paribas

Securities

Corp.,

4%,

1/03/23

(Maturity

Value

$725,322,222)

Collateralized

by

U.S.

Treasury

Note,

0.5%

-

2%,

2/15/25

-

3/31/25

(valued

at

$740,679,321)

....................................................

725,000,000

725,000,000

Deutsche

Bank

Securities,

Inc.,

4.24%,

1/03/23

(Maturity

Value

$78,036,747)

Collateralized

by

U.S.

Treasury

Note,

2.375%,

8/15/24

(valued

at

$79,560,076)

...

78,000,000

78,000,000

Federal

Reserve

Bank

of

New

York,

4.3%,

1/03/23

(Maturity

Value

$2,276,086,944)

Collateralized

by

U.S.

Treasury

Notes,

0.375%

-

2%,

5/31/24

-

8/15/24

(valued

at

$2,276,086,978)

...................................................

2,275,000,000

2,275,000,000

Goldman

Sachs

&

Co.

LLC,

4.14%,

1/03/23

(Maturity

Value

$75,034,500)

Collateralized

by

U.S.

Treasury

Note,

2.625%,

5/31/27

(valued

at

$76,652,097)

...

75,000,000

75,000,000

HSBC

Securities

USA,

Inc.,

4.25%,

1/03/23

(Maturity

Value

$5,002,361)

Collateralized

by

U.S.

Government

Agency

Securities,

0%,

1/04/27;

and

U.S.

Treasury

Bond,

3.125%,

5/15/48

(valued

at

$5,100,054)

.....................

5,000,000

5,000,000

Total

Repurchase

Agreements

(Cost

$3,558,000,000)

............................

3,558,000,000

Total

Short

Term

Investments

(Cost

$11,230,357,086

)

............................

11,230,357,086

a

Total

Investments

(Cost

$11,230,357,086)

99.5%

.................................

$11,230,357,086

Other

Assets,

less

Liabilities

0.5%

.............................................

50,885,952

Net

Assets

100.0%

...........................................................

$11,281,243,038

a

The

coupon

rate

shown

represents

the

rate

at

period

end.

b

The

security

was

issued

on

a

discount

basis

with

no

stated

coupon

rate.

c

See

Note

1(b)

regarding

repurchase

agreement.

The

Money

Market

Portfolios

Financial

Statements

Statement

of

Assets

and

Liabilities

December

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

The

U.S.

Government

Money

Market

Portfolio

Assets:

Investments

in

unaffiliated

securities,

at

amortized

cost

...............................................

$7,672,357,086

Unaffiliated

repurchase

agreements,

at

value

and

cost

...............................................

3,558,000,000

Cash

....................................................................................

46,738,154

Receivables:

Interest

.................................................................................

5,802,140

Total

assets

..........................................................................

11,282,897,380

Liabilities:

Payables:

Management

fees

.........................................................................

1,483,360

Distributions

to

shareholders

.................................................................

123

Accrued

expenses

and

other

liabilities

...........................................................

170,859

Total

liabilities

.........................................................................

1,654,342

Net

assets,

at

value

.................................................................

$11,281,243,038

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$11,281,243,472

Total

distributable

earnings

(losses)

.............................................................

(434)

Net

assets,

at

value

.................................................................

$11,281,243,038

Shares

outstanding

.........................................................................

11,281,233,624

Net

asset

value

per

share

....................................................................

$1.00

The

Money

Market

Portfolios

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

December

31,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

The

U.S.

Government

Money

Market

Portfolio

Investment

income:

Interest:

Unaffiliated

issuers

........................................................................

$163,390,188

Expenses:

Management

fees

(Note

3

a

)

...................................................................

8,754,665

Custodian

fees

(Note

4

)

......................................................................

18,346

Reports

to

shareholders

fees

..................................................................

1,401

Registration

and

filing

fees

....................................................................

31

Professional

fees

...........................................................................

44,003

Trustees'

fees

and

expenses

..................................................................

67,570

Other

....................................................................................

74,965

Total

expenses

.........................................................................

8,960,981

Expense

reductions

(Note

4

)

...............................................................

(5,488)

Net

expenses

.........................................................................

8,955,493

Net

investment

income

................................................................

154,434,695

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$154,434,695

The

Money

Market

Portfolios

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

The

U.S.

Government

Money

Market

Portfolio

Six

Months

Ended

December

31,

2022

(unaudited)

Year

Ended

June

30,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$154,434,695

$16,128,521

Distributions

to

shareholders

..............................................

(154,434,696)

(16,128,521)

Capital

share

transactions

(Note

2

)

..........................................

178,929,343

(709,105,982)

Net

increase

(decrease)

in

net

assets

...................................

178,929,342

(709,105,982)

Net

assets:

Beginning

of

period

.....................................................

11,102,313,696

11,811,419,678

End

of

period

..........................................................

$11,281,243,038

$11,102,313,696

The

Money

Market

Portfolios

27

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

The

U.S.

Government

Money

Market

Portfolio

1.

Organization

and

Significant

Accounting

Policies

The

Money

Market

Portfolios

(Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-

end

management

investment

company,

consisting

of

one

portfolio The

U.S.

Government

Money

Market

Portfolio

(Portfolio).

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standard

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

shares

of

the

Portfolio

are

issued

in

private

placements

and

are

exempt

from

registration

under

the

Securities

Act

of

1933.

The

following

summarizes

the Portfolio's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

Securities

are

valued

at

amortized

cost,

which

approximates

fair

value.

Amortized

cost

is

an

income-based

approach

which

involves

valuing

an

instrument

at

its

cost

and

thereafter

assuming

a

constant

amortization

to

maturity

of

any

discount

or

premium.

Under

compliance

policies

and

procedures

approved

by

the

Portfolio's Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Portfolio’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).

b.

Repurchase

Agreements 

The

Portfolio

enters

into

repurchase

agreements,

which

are

accounted

for

as

a

loan

by

the

Portfolio

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Portfolio's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

(if

the

counterparty

is

a

bank

or

broker-dealer)

or

100%

(if

the

counterparty

is

the

Federal

Reserve

Bank

of

New

York)

of

the

dollar

amount

invested

by

the

Portfolio,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Portfolio,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Portfolio

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Portfolio

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

All

repurchase

agreements

held

by

the

Portfolio

at

period

end,

as

indicated

in

the

Schedule

of

Investments,

had

been

entered

into

on

December

30,

2022.

c.

Income

Taxes

It

is the Portfolio's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The Portfolio

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

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

Portfolio

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

December

31,

2022,

the

Portfolio

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

Portfolio

invests. 

d.

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

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

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

The

Money

Market

Portfolios

Notes

to

Financial

Statements

(unaudited)

28

franklintempleton.com

Semiannual

Report

The

U.S.

Government

Money

Market

Portfolio

(continued)

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.

e.

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.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Portfolio,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

December

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Portfolio’s

shares

at

$1.00

per

share

were

as

follows:

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

Trust

are

also

officers,

directors,

and/or

trustees

of

Franklin

U.S

Government

Money

Fund,

Institutional

Fiduciary

Trust,

and

of

the

following

subsidiaries:

a.

Management

Fees

The

Portfolio

pays

an

investment

management

fee

to

Advisers

of

0.15%

per

year

of

the

average

daily

net

assets

of

the

Portfolio.

b.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Portfolio and

is

not

paid

by

the Portfolio

for

the

services.

Six

Months

Ended

December

31,

2022

Year

Ended

June

30,

2022

Shares

sold

...................................

$13,272,910,964

$31,667,180,822

Shares

issued

in

reinvestment

of

distributions

..........

154,468,950

16,125,918

Shares

redeemed

...............................

(13,248,450,571)

(32,392,412,722)

Net

increase

(decrease)

..........................

$178,929,343

$(709,105,982)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

The

Money

Market

Portfolios

Notes

to

Financial

Statements

(unaudited)

29

franklintempleton.com

Semiannual

Report

The

U.S.

Government

Money

Market

Portfolio

(continued)

c.

Waiver

and

Expense

Reimbursements

In

efforts

to

maintain

a

minimum

1

basis

point

annualized

yield,

Advisers

and

Investor

Services

have

voluntarily

agreed

to

waive

or

limit

their

respective

fees,

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

the

Fund

and

if

necessary,

make

a

capital

infusion

into

the

Fund.

These

waivers,

expense

reimbursements

and

capital

infusions

are

voluntary

and

may

be

modified

or

discontinued

by

Advisers

or

Investor

Services

at

any

time,

and

without

further

notice.

Total

expenses

waived

or

paid

are

not

subject

to

reimbursement

by

the

Fund

subsequent

to

the

Fund's

fiscal

year

end.

There

is

no

guarantee

that

the

Fund

will

be

able

to

maintain

a

1

basis

point

yield.

There

were

no

expenses

waived

during

the

period

ended

December

31,

2022.

d.

Other

Affiliated

Transactions

At

December

31,

2022,

the

shares

of

the

Portfolio

were

owned

by

the

following

investment

companies:

4.

Expense

Offset

Arrangement

The Portfolio has

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

Portfolio’s

custodian

expenses.

During

the

period

ended

December

31,

2022,

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

June

30,

2022,

the

capital

loss

carryforwards

were

as

follows:

At

December

3

1

,

2022,

the

cost

of

investments

for

book

and

income

tax

purposes

w

as

the

same.

6.

Geopolitical

Risk 

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board.

Shares

Percentage

of

Outstanding

Shares

Institutional

Fiduciary

Trust—Money

Market

Portfolio

............................

6,297,178,815

55.8%

Franklin

U.S.

Government

Money

Fund

......................................

4,984,066,257

44.2%

11,281,245,072

100.0%

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$433

3.

Transactions

with

Affiliates

(continued)

The

Money

Market

Portfolios

Notes

to

Financial

Statements

(unaudited)

30

franklintempleton.com

Semiannual

Report

The

U.S.

Government

Money

Market

Portfolio

(continued)

7.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

8.

Fair

Value

Measurements

The

Portfolio

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Portfolio's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Portfolio'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.

Money

market

securities

may

be

valued

using

amortized

cost,

in

accordance

with

the

1940

Act.

Generally,

amortized

cost

reflects

the

current

fair

value

of

a

security,

but

since

the

value

is

not

obtained

from

a

quoted

price

in

an

active

market,

such

financial

instruments

were

valued

using

Level

2

inputs.

At

December

31,

2022,

all

of

the

Portfolio’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

2

inputs.

9.

Subsequent

Events

The

Portfolio

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Selected

Portfolio

FFCB

Federal

Farm

Credit

Banks

Funding

Corp.

FHLB

Federal

Home

Loan

Banks

FRN

Floating

Rate

Note

SOFR

Secured

Overnight

Financing

Rate

Franklin

U.S.

Government

Money

Fund

Shareholder

Information

31

franklintempleton.com

Semiannual

Report

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

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)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

111

S

02/23

©

2023

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.

Semiannual

Report

and

Shareholder

Letter

Franklin

U.S.

Government

Money

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.       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. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(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 Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

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 U.S. GOVERNMENT MONEY FUND

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  February 27, 2023

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\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  February 27, 2023

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  February 27, 2023