N-CSRS 1 primary-document.htm
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 811-03395
 
Franklin Federal Tax-Free Income Fund

(Exact name of registrant as specified in charter)
 
One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices)(Zip code)
 
Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)
 
Registrant's telephone number, including area code: 650 312-2000
 
Date of fiscal year end: 4/30
 
Date of reporting period: 10/31/21
 
 
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
Federal
Tax-Free
Income
Fund
October
31,
2021
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
October
31,
2021,
the
U.S.
economy
continued
to
recover
from
the
COVID-19
pandemic,
benefiting
equities.
Growth
accelerated
in
2021’s
first
half
as
the
reopening
of
businesses,
widespread
COVID-19
vaccinations
and
federal
assistance
programs
continued
to
boost
consumer
spending.
Inflation
increased
in
April
and
rose
further
during
the
reporting
period
due
to
increased
demand
for
goods
amid
supply-chain
bottlenecks.
During
the
summer,
investors
became
concerned
the
swiftly
spreading
Delta
variant
of
COVID-19
could
hinder
the
economic
recovery,
and
growth
slowed
in
2021’s
third
quarter.
During
the
reporting
period,
the
U.S.
Federal
Reserve,
in
its
efforts
to
support
U.S.
economic
activity,
held
the
federal
funds
rate
unchanged
at
0.25%,
and
it
continued
broad
quantitative
easing
measures
to
bolster
credit
markets.
The
Federal
Reserve
also
adjusted
its
economic
growth
and
inflation
projections
higher
and
expected
to
begin
decreasing
its
asset
purchases
later
this
year,
while
delaying
any
interest
rate
increases
until
reaching
its
goal
of
maximum
U.S.
employment.
During
the
six-month
period,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
+0.01%
cumulative
total
return
as
investors
were
attracted
to
tax-
free
income
in
a
stable
interest-rate
environment.
1
Factors
contributing
to
this
investment
environment
for
municipals
included
fluctuating
demand,
the
reopening
of
businesses
and
increased
consumer
spending
that
benefited
municipal
security
issuers,
and
actions
by
the
Federal
Reserve
to
help
maintain
a
low
interest-rate
environment.
Franklin
Federal
Tax-Free
Income
Fund’s
semiannual
report
includes
more
detail
about
municipal
bond
market
conditions
and
a
discussion
from
the
portfolio
managers.
In
addition,
on
our
website,
franklintempleton.com
,
you
can
find
updated
commentary
by
our
municipal
bond
experts.
Municipal
bonds
provide
tax-free
income
and
diversification
from
equities.
Despite
periods
of
volatility,
municipal
bonds
historically
have
had
a
solid
long-term
record
of
performance,
driven
mostly
by
their
compounding
tax-free
income
component.
As
you
know,
all
securities
markets
fluctuate
in
value,
as
do
mutual
fund
share
prices.
As
always,
we
recommend
investors
consult
their
financial
professionals
to
help
them
make
the
best
decisions
for
the
long
term.
In
a
constantly
changing
market
environment,
we
remain
committed
to
our
disciplined
strategy
as
we
manage
the
Fund,
keeping
in
mind
the
trust
you
have
placed
in
us.
We
appreciate
your
confidence
in
us
and
encourage
you
to
contact
us
or
your
financial
professional
when
you
have
questions
about
your
Franklin
tax-free
investment.
Sincerely,
Rupert
H.
Johnson,
Jr.
Chairman
Franklin
Federal
Tax-Free
Income
Fund
Ben
Barber
Senior
Vice
President
Director
of
Municipal
Bonds
This
letter
reflects
our
analysis
and
opinions
as
of
October
31,
2021,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Franklin
Federal
Tax-Free
Income
Fund
3
Performance
Summary
5
Your
Fund’s
Expenses
7
Financial
Highlights
and
Statement
of
Investments
8
Financial
Statements
44
Notes
to
Financial
Statements
48
Shareholder
Information
56
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Franklin
Federal
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Federal
Tax-Free
Income
Fund
covers
the
period
ended
October
31,
2021.
Your
Fund’s
Goal
and
Main
Investments
The
Fund
seeks
to
provide
investors
with
as
high
a
level
of
income
exempt
from
federal
income
taxes
as
is
consistent
with
prudent
investment
management
and
the
preservation
of
shareholders’
capital
by
normally
investing
at
least
80%
of
its
total
assets
in
investment-grade
municipal
securities
that
pay
interest
free
from
such
taxes.
1
Performance
Overview
The
Fund’s
Class
A
share
price,
as
measured
by
net
asset
value,
decreased
from
$12.31
on
April
30,
2021,
to
$12.20
on
October
31,
2021.
The
Fund’s
Class
A
shares
paid
dividends
totaling
14.9604
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page
5
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
2.23%
based
on
an
annualization
of
October’s
2.3562
cents
per
share
dividend
and
the
maximum
offering
price
of
$12.68
on
October
31,
2021.
An
investor
in
the
2021
maximum
federal
personal
income
tax
bracket
of
37.00%
(plus
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
3.77%
from
a
taxable
investment
to
match
the
Fund’s
Class
A
tax-free
distribution
rate.
For
other
performance
data,
please
see
the
Performance
Summary.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Municipal
Bond
Market
Overview
During
the
six
months
ended
October
31,
2021,
the
U.S.
and
the
rest
of
the
world
continued
to
manage
the
recovery
from
the
COVID-19
pandemic
that
has
caused
significant
economic
and
personal
hardship.
Daily
new
COVID-19
case
rates
rose
dramatically
throughout
the
summer
as
breakthrough
cases
(infections
of
vaccinated
individuals)
grew
significantly.
The
U.S.
Food
and
Drug
Administration
approved
booster
shots
for
vulnerable
persons
and
front-line
workers.
This
additional
immunization
dramatically
improves
coverage
for
current
COVID-19
strains
including
the
Delta
variant.
It
is
widely
expected
that
booster
shots
will
be
made
available
to
all.
Moving
into
October
2021,
we
saw
a
significant
decrease
in
new
case
rates
and
hospitalizations.
Third-quarter
2021
U.S.
gross
domestic
product
growth
disappointed
many
economists
at
just
2.0%.
Employment
improved,
driving
the
unemployment
rate
to
4.6%
in
October
2021,
down
from
a
peak
of
14.8%
seen
in
April
2020.
Global
supply-chain
bottlenecks
and
rising
input
prices
continued
to
plague
the
manufacturing
sector,
limiting
output
growth
that
has
been
met
with
high
levels
of
demand
for
goods.
Inflation
still
remains
a
major
concern
for
markets
as
consumer
short-
term
inflation
expectations
continue
to
rise.
Minutes
from
the
U.S.
Federal
Reserve’s
(Fed’s)
September
2021
meeting
provided
some
additional
context
regarding
the
Fed’s
intention
to
begin
tapering
their
monthly
asset
purchases—currently
set
at
$80
billion
of
U.S.
Treasuries
(USTs)
and
$40
billion
of
agency
mortgage-backed
securities
(MBS)
per
month.
The
Fed
put
forth
a
plan
in
which
it
could
start
to
reduce
its
purchases
by
$10
billion
of
USTs
and
$5
billion
of
MBS
per
month
following
the
Fed’s
official
taper
decision.
The
removal
of
this
price-insensitive
UST
and
MBS
buyer
may
lead,
in
our
opinion,
to
increased
volatility
in
markets,
which
could
put
pressure
on
municipal
(muni)
bond
valuations
as
they
tend
to
lag
UST
yield
curve
changes.
Strong
demand
for
muni
bonds
pushed
ratios
of
30-year
muni
bonds
versus
UST
yields
in
June
2021
to
all-time
lows.
Although
these—and
other
maturity
ratios—have
since
increased,
they
remain
at
historically
rich
levels.
In
times
of
increased
UST
volatility
throughout
the
six
months,
muni
bond
valuations
suffered
declines,
partially
due
to
lower
demand,
only
to
rally
once
stability
returned
to
the
market.
Muni
issuer
fundamentals
remained
strong
as
they
have
benefited
from
the
reopening
of
businesses
and
increased
consumer
spending.
The
U.S.
Congress
and
the
president
1.
Dividends
are
generally
subject
to
state
and
local
taxes,
if
any.
For
investors
subject
to
alternative
minimum
tax,
a
small
portion
of
Fund
dividends
may
be
taxable.
Distribu-
tions
of
capital
gains
are
generally
taxable.
To
avoid
imposition
of
28%
backup
withholding
on
all
Fund
distributions
and
redemption
proceeds,
U.S.
investors
must
be
properly
certified
on
Form
W-9
and
non-U.S.
investors
on
Form
W-8BEN.
2.
The
distribution
amount
is
the
sum
of
all
estimated
tax-basis
net
investment
income
distributions
for
the
period
shown.
A
portion
or
all
of
the
distribution
may
be
reclassified
as
return
of
capital
or
short-term
or
long-term
capital
gains
once
final
tax
designations
are
known.
Assumes
shares
were
purchased
and
held
for
the
entire
accrual
period.
Since
dividends
accrue
daily,
your
actual
distributions
will
vary
depending
on
the
date
you
purchased
your
shares
and
any
account
activity.
All
Fund
distributions
will
vary
depending
upon
current
market
conditions,
and
past
distributions
are
not
indicative
of
future
trends.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
13
.
Franklin
Federal
Tax-Free
Income
Fund
4
franklintempleton.com
Semiannual
Report
did
not
reach
an
agreement
on
a
large
infrastructure
spending
bill.
There
has
been
friction
between
more
progressive
Democrats
and
their
centrist
counterparts.
The
most
current
proposal
includes
increasing
taxes
on
wealthy
individuals
that
could
spark,
in
our
opinion,
additional
demand
for
tax-exempt
income.
If
an
agreement
is
reached,
it
could
increase
muni
bond
issuance
to
finance
these
large
multi-year
projects.
For
the
six-month
period,
U.S.
fixed
income
sectors
broadly
underperformed
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
500
®
Index,
which
posted
a
+10.91%
total
return
for
the
period.
3
Investment-grade
muni
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
+0.01%
total
return,
while
USTs,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
+1.01%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
+2.66%
total
return.
3
Investment
Strategy
We
select
securities
that
we
believe
provide
the
best
balance
between
risk
and
return
within
the
Fund’s
range
of
allowable
investments
and
typically
use
a
buy-and-hold
strategy.
This
means
we
generally
hold
securities
in
the
Fund’s
portfolio
for
income
purposes,
rather
than
trading
securities
for
capital
gains,
although
we
may
sell
a
security
at
any
time
if
we
believe
it
could
help
the
Fund
meet
its
goal.
Manager’s
Discussion
Our
relative
value-oriented
approach
of
investing
primarily
for
income
and
preservation
of
principal,
when
combined
with
a
positive-sloping
municipal
yield
curve,
in
which
yields
for
longer-term
bonds
are
higher
than
those
for
shorter-
term
bonds,
led
us
to
favor
longer-term
bonds
during
the
period
under
review.
Consistent
with
our
strategy,
we
sought
to
remain
invested
in
bonds
ranging
from
20
to
30
years
in
maturity
with
good
call
features.
Our
relative-value,
income-oriented
philosophy
also
led
the
Fund
to
invest
in
credit
driven
securities
rated
A
and
below
as
credit
spreads
widened,
which
provided
both
income
and
performance
during
the
reporting
period.
We
believe
our
disciplined
relative
value
approach
can
help
us
achieve
high,
current,
tax-free
income
for
shareholders.
Thank
you
for
your
continued
participation
in
Franklin
Federal
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
October
31,
2021,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
state,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
10/31/21
%
of
Total
Investments
Health
Care
19.13%
Transportation
18.20%
Utilities
13.90%
Special
Tax
9.79%
Lease
8.55%
Refunded
7.48%
Education
5.31%
Local
5.30%
Industrial
Dev.
Revenue
and
Pollution
Control
4.80%
State
General
Obligation
4.17%
Housing
2.96%
Other
Revenue
Bonds
0.41%
3.
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.
Performance
Summary
as
of
October
31,
2021
Franklin
Federal
Tax-Free
Income
Fund
5
franklintempleton.com
Semiannual
Report
The
performance
table
does
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
10/31
/21
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+0.23%
-3.53%
1-Year
+4.07%
+0.16%
5-Year
+15.70%
+2.17%
10-Year
+44.82%
+3.38%
Advisor
6-Month
+0.44%
+0.44%
1-Year
+4.41%
+4.41%
5-Year
+16.91%
+3.17%
10-Year
+47.14%
+3.94%
Share
Class
Distribution
Rate
5
Taxable
Equivalent
Distribution
Rate
6
30-Day
Standardized
Yield
7
Taxable
Equivalent
30-Day
Standardized
Yield
6
A
2.23%
3.77%
1.09%
1.84%
Advisor
2.55%
4.31%
1.38%
2.33%
See
page
6
for
Performance
Summary
footnotes.
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
6
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
Because
municipal
bonds
are
sensitive
to
interest-rate
movements,
the
Fund’s
yield
and
share
price
will
fluctuate
with
market
conditions.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Puerto
Rico
municipal
bonds
have
been
impacted
by
recent
adverse
economic
and
market
changes,
which
may
cause
the
Fund’s
share
price
to
decline.
Changes
in
the
credit
rating
of
a
bond,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
The
Fund
may
invest
a
significant
part
of
its
assets
in
municipal
securities
that
finance
similar
types
of
projects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
Performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
October
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
10/31/21.
6.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2021
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
7.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
8.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(5/1/21–10/31/21)
Share
Class
Net
Investment
Income
A
$0.149604
A1
$0.158850
C
$0.124946
R6
$0.167516
Advisor
$0.165013
Total
Annual
Operating
Expenses
8
Share
Class
A
0.78%
Advisor
0.53%
Your
Fund’s
Expenses
Franklin
Federal
Tax-Free
Income
Fund
7
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
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
5/1/21
Ending
Account
Value
10/31/21
Expenses
Paid
During
Period
5/1/21–10/31/21
1,2
Ending
Account
Value
10/31/21
Expenses
Paid
During
Period
5/1/21–10/31/21
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,002.30
$3.91
$1,021.30
$3.95
0.77%
A1
$1,000
$1,003.90
$3.16
$1,022.05
$3.19
0.63%
C
$1,000
$1,001.10
$5.95
$1,019.26
$6.01
1.18%
R6
$1,000
$1,003.80
$2.45
$1,022.77
$2.47
0.48%
Advisor
$1,000
$1,004.40
$2.65
$1,022.56
$2.68
0.53%
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
Six
Months
Ended
October
31,
2021
(unaudited)
Year
Ended
April
30,
Year
Ended
April
30,
2019
a
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$12.31
$11.60
$11.82
$11.62
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.16
0.33
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
........................
(0.12)
0.71
(0.22)
0.19
Total
from
investment
operations
.................................
0.04
1.04
0.13
0.44
Less
distributions
from:
Net
investment
income
.......................................
(0.15)
(0.33)
(0.35)
(0.24)
Net
asset
value,
end
of
period
...................................
$12.20
$12.31
$11.60
$11.82
Total
return
d
................................................
0.23%
9.01%
1.07%
3.87%
Ratios
to
average
net
assets
e
Expenses
f
..................................................
0.77%
g
0.78%
g
0.77%
0.78%
Net
investment
income
........................................
2.52%
2.72%
2.96%
3.45%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$2,047,460
$1,770,979
$1,110,207
$567,500
Portfolio
turnover
rate
.........................................
7.22%
16.18%
20.23%
14.58%
a
For
the
period
September
10,
2018
(effective
date)
to
April
30,
2019.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
Six
Months
Ended
October
31,
2021
(unaudited)
Year
Ended
April
30,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.31
$11.60
$11.82
$11.68
$12.02
$12.48
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.17
0.35
0.37
0.42
0.44
0.47
Net
realized
and
unrealized
gains
(losses)
(0.12)
0.70
(0.22)
0.16
(0.34)
(0.47)
Total
from
investment
operations
........
0.05
1.05
0.15
0.58
0.10
—
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.34)
(0.37)
(0.44)
(0.44)
(0.46)
Net
asset
value,
end
of
period
..........
$12.20
$12.31
$11.60
$11.82
$11.68
$12.02
Total
return
c
.......................
0.39%
9.17%
1.22%
5.06%
0.85%
0.01%
Ratios
to
average
net
assets
d
Expenses
.........................
0.63%
e,f
0.63%
e,f
0.62%
e
0.63%
e
0.63%
0.62%
Net
investment
income
...............
2.67%
2.89%
3.11%
3.60%
3.66%
3.82%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$6,701,183
$6,919,289
$6,833,018
$7,821,881
$8,616,659
$9,342,715
Portfolio
turnover
rate
................
7.22%
16.18%
20.23%
14.58%
16.46%
13.86%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Ratios
are
annualized
for
periods
less
than
one
year.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
October
31,
2021
(unaudited)
Year
Ended
April
30,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.30
$11.59
$11.81
$11.68
$12.01
$12.47
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.13
0.29
0.31
0.35
0.37
0.40
Net
realized
and
unrealized
gains
(losses)
(0.12)
0.70
(0.22)
0.15
(0.32)
(0.47)
Total
from
investment
operations
........
0.01
0.99
0.09
0.50
0.05
(0.07)
Less
distributions
from:
Net
investment
income
..............
(0.12)
(0.28)
(0.31)
(0.37)
(0.38)
(0.39)
Net
asset
value,
end
of
period
..........
$12.19
$12.30
$11.59
$11.81
$11.68
$12.01
Total
return
c
.......................
0.11%
8.58%
0.67%
4.39%
0.37%
(0.55)%
Ratios
to
average
net
assets
d
Expenses
.........................
1.18%
e,f
1.18%
e,f
1.17%
e
1.18%
e
1.18%
1.17%
Net
investment
income
...............
2.12%
2.35%
2.56%
3.05%
3.11%
3.27%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$410,417
$543,196
$657,344
$841,909
$1,220,402
$1,411,391
Portfolio
turnover
rate
................
7.22%
16.18%
20.23%
14.58%
16.46%
13.86%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable.
d
Ratios
are
annualized
for
periods
less
than
one
year.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
October
31,
2021
(unaudited)
Year
Ended
April
30,
Year
Ended
April
30,
2018
a
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$12.32
$11.61
$11.83
$11.69
$12.03
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.17
0.37
0.39
0.44
0.34
Net
realized
and
unrealized
gains
(losses)
...........
(0.12)
0.70
(0.22)
0.15
(0.38)
Total
from
investment
operations
....................
0.05
1.07
0.17
0.59
(0.04)
Less
distributions
from:
Net
investment
income
..........................
(0.17)
(0.36)
(0.39)
(0.45)
(0.30)
Net
asset
value,
end
of
period
......................
$12.20
$12.32
$11.61
$11.83
$11.69
Total
return
d
...................................
0.38%
9.31%
1.37%
5.19%
(0.32)%
Ratios
to
average
net
assets
e
Expenses
f
.....................................
0.48%
g
0.49%
g
0.49%
g
0.49%
g
0.49%
Net
investment
income
...........................
2.80%
3.00%
3.24%
3.74%
3.80%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$343,298
$294,727
$196,774
$177,983
$365,406
Portfolio
turnover
rate
............................
7.22%
16.18%
20.23%
14.58%
16.46%
a
For
the
period
August
1,
2017
(effective
date)
to
April
30,
2018.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
October
31,
2021
(unaudited)
Year
Ended
April
30,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$12.32
$11.61
$11.83
$11.69
$12.03
$12.49
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.17
0.36
0.38
0.43
0.45
0.48
Net
realized
and
unrealized
gains
(losses)
(0.11)
0.71
(0.22)
0.16
(0.33)
(0.47)
Total
from
investment
operations
........
0.06
1.07
0.16
0.59
0.12
0.01
Less
distributions
from:
Net
investment
income
..............
(0.17)
(0.36)
(0.38)
(0.45)
(0.46)
(0.47)
Net
asset
value,
end
of
period
..........
$12.21
$12.32
$11.61
$11.83
$11.69
$12.03
Total
return
c
.......................
0.44%
9.27%
1.33%
5.15%
0.95%
0.11%
Ratios
to
average
net
assets
d
Expenses
.........................
0.53%
e,f
0.53%
e,f
0.52%
e
0.53%
e
0.53%
0.52%
Net
investment
income
...............
2.77%
2.98%
3.21%
3.70%
3.76%
3.92%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,813,073
$1,829,553
$1,465,542
$1,210,861
$1,207,490
$1,633,602
Portfolio
turnover
rate
................
7.22%
16.18%
20.23%
14.58%
16.46%
13.86%
a
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
b
Based
on
average
daily
shares
outstanding.
c
Total
return
is
not
annualized
for
periods
less
than
one
year.
d
Ratios
are
annualized
for
periods
less
than
one
year.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited),
October
31,
2021
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
a
Shares
a
Value
a
Management
Investment
Companies
0.0%
†
Capital
Markets
0.0%
†
a
Franklin
Liberty
Federal
Tax-Free
Bond
ETF
...............................
83,000
$
2,231,040
Total
Management
Investment
Companies
(Cost
$2,255,733)
.....................
2,231,040
Principal
Amount
a
a
a
a
Municipal
Bonds
97.1%
Alabama
1.2%
Alabama
Incentives
Financing
Authority
,
Revenue
,
2012
A
,
Pre-Refunded
,
5
%
,
9/01/42
$
14,300,000
14,857,905
Alabama
Public
Health
Care
Authority
(The)
,
State
of
Alabama
Department
of
Public
Health
,
Revenue
,
2015
,
Refunding
,
5
%
,
9/01/44
...........................
17,085,000
19,472,099
b
Black
Belt
Energy
Gas
District
,
Revenue
,
2021
A
,
Refunding
,
Mandatory
Put
,
4
%
,
12/01/31
........................................................
10,000,000
12,167,702
Board
of
Water
&
Sewer
Commissioners
of
the
City
of
Mobile
,
Revenue
,
2014
,
Refunding
,
5
%
,
1/01/36
.............................................
11,300,000
11,884,743
Chilton
County
Health
Care
Authority
,
Revenue
,
2015
A
,
5
%
,
11/01/40
............
8,425,000
9,449,039
c
County
of
Mobile
,
Revenue
,
144A,
2020
,
4
%
,
11/01/45
.......................
10,000,000
10,765,311
Health
Care
Authority
of
the
City
of
Huntsville
(The)
,
Obligated
Group
,
Revenue
,
2020
B
,
4
%
,
6/01/45
....................................................
3,500,000
4,020,644
Limestone
County
Water
&
Sewer
Authority
,
Revenue
,
2017
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
12/01/45
..............................................
10,500,000
12,772,955
b
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue
,
2021
A
,
Mandatory
Put
,
4
%
,
10/01/28
.....................................................
26,000,000
30,361,591
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
5,000,000
6,043,808
Water
Works
Board
of
the
City
of
Birmingham
(The)
,
Revenue
,
2013
B
,
Pre-Refunded
,
5
%
,
1/01/43
......................................................
8,000,000
8,446,792
140,242,589
Alaska
0.4%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2015,
Refunding,
5.25%,
10/01/36
.............................
16,045,000
18,201,612
Revenue,
2015,
Refunding,
5%,
10/01/39
................................
12,950,000
14,536,427
Northern
Tobacco
Securitization
Corp.
,
Revenue,
Senior
Lien,
2021
A,
1,
Refunding,
4%,
6/01/50
...................
3,250,000
3,610,309
Revenue,
Senior
Lien,
2021
B-1,
2,
Refunding,
0.5%,
6/01/31
................
1,000,000
977,842
Revenue,
Senior
Lien,
2021
B-1,
2,
Refunding,
4%,
6/01/50
..................
2,000,000
2,206,431
39,532,621
Arizona
2.5%
Arizona
Industrial
Development
Authority
,
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/45
.......................................................
2,200,000
2,499,233
Equitable
School
Revolving
Fund
LLC
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/50
.......................................................
2,500,000
2,825,995
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/32
............
205,000
229,774
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/33
............
220,000
246,178
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/34
............
230,000
246,774
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/35
............
235,000
251,869
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/36
............
220,000
235,398
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/41
............
720,000
764,947
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/51
............
550,000
579,346
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/61
............
6,050,000
6,345,758
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/32
..........
330,000
405,486
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
5%,
7/01/33
..........
315,000
385,838
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/34
..........
330,000
371,457
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/35
..........
365,000
410,007
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/36
..........
315,000
352,995
Kipp
New
York,
Inc.
Macombs
Facility,
Revenue,
2021
A,
4%,
7/01/61
..........
4,650,000
5,030,357
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Arizona
(continued)
Arizona
State
University
,
Revenue
,
2016
C
,
5
%
,
7/01/42
......................
$
9,000,000
$
10,597,527
b
Chandler
Industrial
Development
Authority
,
Intel
Corp.
,
Revenue
,
2019
,
Mandatory
Put
,
5
%
,
6/03/24
......................................................
15,000,000
16,686,471
City
of
Lake
Havasu
City
,
Wastewater
System
,
Revenue
,
2015
B
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/40
...............................................
15,000,000
17,078,271
City
of
Mesa
,
Utility
System
,
Revenue
,
2012
,
4
%
,
7/01/36
.....................
19,000,000
19,399,300
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
25,000,000
28,226,350
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/49
........................
16,000,000
19,192,475
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
4%,
7/01/45
..................................................
14,985,000
16,802,673
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/32
........................................................
6,000,000
8,176,503
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/34
........................................................
5,000,000
7,003,904
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/35
........................................................
9,860,000
14,048,166
Glendale
Industrial
Development
Authority
,
People
of
Faith,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
5/15/56
........................................
10,000,000
11,195,405
Glendale
Municipal
Property
Corp.
,
Revenue
,
2012
C
,
Refunding
,
5
%
,
7/01/38
.....
15,500,000
16,268,566
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
2019
A,
4%,
1/01/44
...............
25,000,000
28,760,665
Banner
Health
Obligated
Group,
Revenue,
A,
4%,
1/01/41
...................
10,000,000
11,321,313
Christian
Care
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/01/36
......
5,000,000
5,591,891
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.
,
Revenue
,
2009
A
,
Refunding
,
3.6
%
,
2/01/40
............................................
19,500,000
21,272,782
University
of
Arizona
(The)
,
Revenue
,
2014
,
5
%
,
8/01/44
......................
10,000,000
11,112,055
283,915,729
Arkansas
0.5%
Arkansas
Development
Finance
Authority
,
Baptist
Health
Obligated
Group,
Revenue,
2019,
5%,
12/01/47
................
3,025,000
3,664,367
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/40
........................................................
1,100,000
1,356,189
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/44
........................................................
5,000,000
6,107,700
Bentonville
School
District
No.
6
,
GO
,
B
,
Refunding
,
4
%
,
6/01/47
................
27,935,000
31,057,357
University
of
Arkansas
,
Revenue,
2017,
5%,
11/01/47
........................................
6,500,000
7,917,686
Revenue,
2019
A,
Refunding,
5%,
11/01/49
..............................
3,000,000
3,722,579
53,825,878
California
5.8%
c
Align
Affordable
Housing
Bond
Fund
LP
,
Coronado
Springs
Tower
LLC
,
Revenue
,
144A,
2020-2
,
A
,
4
%
,
9/01/27
.........................................
17,835,000
18,489,366
c
California
Community
Housing
Agency
,
Brio
Apartments
&
Next
on
Lex
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
2/01/56
....................................................
25,000,000
26,447,493
K
Street
Flats,
Revenue,
144A,
2021
A-1,
3%,
2/01/57
......................
10,000,000
9,162,459
California
Infrastructure
&
Economic
Development
Bank
,
Academy
of
Motion
Picture
Arts
and
Sciences
Obligated
Group,
Revenue,
2020
B,
Refunding,
5%,
11/01/29
...........................................
3,000,000
3,871,376
State
of
California
Department
of
Transportation
Seismic
Surcharge,
Revenue,
First
Lien,
2003
A,
Pre-Refunded,
AMBAC
Insured,
5%,
7/01/33
.................
24,500,000
30,584,254
California
State
Public
Works
Board
,
Revenue,
2012
A,
AGMC
Insured,
5%,
4/01/28
............................
13,030,000
13,289,407
Revenue,
2012
A,
AGMC
Insured,
5%,
4/01/29
............................
21,000,000
21,418,076
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
California
State
Public
Works
Board,
(continued)
Revenue,
2012
A,
Refunding,
5%,
4/01/30
...............................
$
18,000,000
$
18,358,351
Revenue,
2012
A,
Refunding,
5%,
4/01/33
...............................
12,475,000
12,723,357
City
of
Los
Angeles
,
Department
of
Airports
,
Revenue
,
2021
D
,
Refunding
,
4
%
,
5/15/51
7,365,000
8,437,389
Corona-Norco
Unified
School
District
,
GO,
C,
AGMC
Insured,
6.2%,
8/01/29
..................................
3,250,000
4,206,059
GO,
C,
Pre-Refunded,
AGMC
Insured,
6.8%,
8/01/39
.......................
8,500,000
11,338,364
GO,
C,
AGMC
Insured,
Zero
Cpn
.,
8/01/39
...............................
7,500,000
4,539,227
c
CSCDA
Community
Improvement
Authority
,
Revenue,
Senior
Lien,
144A,
2021
A,
4%,
10/01/56
........................
13,000,000
13,707,524
Revenue,
Senior
Lien,
144A,
2021
A,
3.25%,
10/01/58
......................
14,000,000
12,878,478
Jefferson
Platinum
Triangle
Apartments,
Revenue,
144A,
2021
A-1,
2.875%,
8/01/41
3,105,000
3,006,785
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Pre-Refunded,
6%,
1/15/49
............................
20,000,000
22,481,704
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
1/15/30
..............
15,475,000
17,907,249
Revenue,
2013
A,
Refunding,
Zero
Cpn
.,
1/15/42
..........................
20,000,000
25,186,100
Los
Angeles
Department
of
Water
&
Power
,
Power
System
,
Revenue
,
2013
B
,
5
%
,
7/01/31
.........................................................
20,000,000
21,541,412
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
12,500,000
19,542,274
New
Haven
Unified
School
District
,
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/31
............................
2,055,000
1,694,659
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/32
............................
7,830,000
6,283,446
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/33
............................
7,660,000
5,981,522
Oro
Grande
Elementary
School
District
,
COP,
2020,
Refunding,
4%,
9/15/24
....................................
2,135,000
2,259,703
COP,
2020,
Refunding,
4%,
9/15/25
....................................
2,120,000
2,273,608
COP,
2020,
Refunding,
4%,
9/15/27
....................................
2,400,000
2,602,645
COP,
2020,
Refunding,
4%,
9/15/28
....................................
2,095,000
2,280,305
Rialto
Unified
School
District
,
GO
,
2011
A
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/36
......
20,000,000
13,380,354
San
Francisco
City
&
County
Airport
Comm
-San
Francisco
International
Airport
,
Revenue,
2019
A,
Refunding,
5%,
5/01/49
...............................
38,000,000
45,751,989
Revenue,
Second
Series,
2019
E,
5%,
5/01/50
............................
1,500,000
1,803,606
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
Senior
Lien,
1993,
ETM,
Zero
Cpn
.,
1/01/23
......................
7,000,000
6,977,763
Revenue,
Senior
Lien,
2014
A,
Refunding,
5%,
1/15/34
.....................
50,000,000
56,100,075
San
Jose
Unified
School
District
,
GO
,
2018
E
,
4
%
,
8/01/42
....................
10,600,000
12,031,139
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn
.,
8/01/42
...............
50,000,000
56,184,595
San
Mateo
Union
High
School
District
,
GO,
2011
A,
Zero
Cpn
.,
9/01/33
.......................................
6,065,000
6,206,644
GO,
2011
A,
Zero
Cpn
.,
9/01/41
.......................................
20,000,000
23,401,446
Santa
Ana
Unified
School
District
,
GO,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/35
...........................
10,000,000
7,558,748
GO,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/36
...........................
18,865,000
13,834,736
GO,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/37
...........................
10,000,000
7,118,698
Santa
Monica-Malibu
Unified
School
District
,
GO
,
A
,
4
%
,
8/01/44
...............
9,360,000
10,742,299
State
of
California
,
GO,
5.9%,
4/01/23
.................................................
605,000
619,176
GO,
2002,
NATL
Insured,
5%,
10/01/32
.................................
20,000
20,074
West
Contra
Costa
Unified
School
District
,
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/29
....................
10,000,000
8,837,806
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/30
....................
20,845,000
17,923,329
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/31
....................
20,000,000
16,717,478
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/32
....................
10,730,000
8,739,890
656,442,437
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Colorado
3.0%
City
&
County
of
Denver
,
Revenue,
2018
A-1,
5%,
8/01/48
......................................
$
39,690,000
$
46,025,072
Revenue,
2018
A-2,
Zero
Cpn
.,
8/01/35
.................................
2,000,000
1,299,111
Revenue,
2018
A-2,
Zero
Cpn
.,
8/01/36
.................................
2,500,000
1,549,034
Revenue,
2018
A-2,
Zero
Cpn
.,
8/01/37
.................................
2,455,000
1,450,493
Revenue,
2018
A-2,
Zero
Cpn
.,
8/01/38
.................................
2,000,000
1,128,543
Airport
System,
Revenue,
1992
C,
NATL
Insured,
ETM,
6.125%,
11/15/25
.......
3,590,000
4,254,528
Airport
System,
Revenue,
2013
B,
5.25%,
11/15/33
........................
16,405,000
17,939,855
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/38
..................
12,000,000
14,578,330
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/43
..................
11,000,000
13,286,994
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/48
..................
10,000,000
12,009,701
Airport
System,
Revenue,
2018
A,
Refunding,
5.25%,
12/01/48
...............
26,000,000
31,710,832
Colorado
Health
Facilities
Authority
,
AdventHealth
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
11/15/41
......
30,505,000
35,351,418
AdventHealth
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/48
...............
12,000,000
14,433,676
AdventHealth
Obligated
Group,
Revenue,
2019
A,
Refunding,
4%,
11/15/43
......
30,000,000
34,788,315
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016
A,
5%,
12/01/41
...
5,000,000
5,858,724
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016
A,
5%,
12/01/44
...
10,200,000
11,921,964
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
5%,
8/01/44
17,700,000
21,263,937
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
12/01/50
...........................................
4,930,000
5,576,657
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/45
...
1,000,000
1,145,751
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
...
3,000,000
3,425,662
Sisters
of
Charity
of
Leavenworth
Health
System,
Inc.
Obligated
Group,
Revenue,
2019
B,
Refunding,
4%,
1/01/40
.....................................
10,000,000
11,641,119
Eagle
River
Water
and
Sanitation
District
,
Revenue
,
2020
A
,
AGMC
Insured
,
4
%
,
12/01/45
........................................................
1,250,000
1,454,248
Park
Creek
Metropolitan
District
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/01/46
......
2,875,000
3,434,663
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
20,000,000
30,397,540
Regional
Transportation
District
,
Denver
Transit
Partners
LLC,
Revenue,
2020
A,
Refunding,
4%,
7/15/39
........
1,000,000
1,271,121
Sales
Tax,
Revenue,
2012
A,
Pre-Refunded,
5%,
11/01/32
...................
10,000,000
10,479,874
337,677,162
Connecticut
0.2%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/37
..........
3,000,000
3,474,300
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/39
..........
5,750,000
6,630,721
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/40
..........
2,250,000
2,586,118
d
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
4%,
7/01/37
...
5,000,000
5,732,088
State
of
Connecticut
,
Special
Tax,
2020
A,
4%,
5/01/39
......................................
1,650,000
1,937,637
Special
Tax,
2020
A,
5%,
5/01/40
......................................
2,000,000
2,527,952
22,888,816
Delaware
0.1%
County
of
Kent
,
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/40
...........................
1,100,000
1,234,766
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/48
...........................
1,485,000
1,649,182
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/53
...........................
1,100,000
1,218,354
d
Delaware
State
Economic
Development
Authority
,
Newark
Charter
School,
Inc.,
Revenue,
2021,
Refunding,
4%,
9/01/41
..........
1,600,000
1,826,891
Newark
Charter
School,
Inc.,
Revenue,
2021,
Refunding,
4%,
9/01/51
..........
3,300,000
3,709,480
9,638,673
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
6.1%
Affordable
Housing
Preservation
Corp.
(The)
,
Revenue
,
5.25
%
,
3/01/22
..........
$
10,000,000
$
9,999,800
Alachua
County
Health
Facilities
Authority
,
e
Oak
Hammock
at
the
University
of
Florida
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
10/01/40
...........................................
2,500,000
2,664,925
d
Oak
Hammock
at
the
University
of
Florida
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
10/01/46
...........................................
1,750,000
1,835,391
Broward
County
Housing
Finance
Authority
,
Heron
Pointe
Ltd.,
Revenue,
1997
A,
5.65%,
11/01/22
......................
125,000
125,461
Heron
Pointe
Ltd.,
Revenue,
1997
A,
5.7%,
11/01/29
.......................
225,000
226,050
Capital
Projects
Finance
Authority
,
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/31
......
1,500,000
1,840,974
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/32
......
1,100,000
1,345,060
Central
Florida
Expressway
Authority
,
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
................................
16,000,000
19,248,683
Revenue,
Senior
Lien,
2019
B,
5%,
7/01/49
..............................
17,000,000
20,849,623
City
of
Atlantic
Beach
,
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
11/15/53
.......................................
9,235,000
10,378,129
City
of
Cape
Coral
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/01/39
......
10,000,000
12,105,647
City
of
Cocoa
,
Water
&
Sewer
,
Revenue
,
2018
B
,
5
%
,
10/01/48
.................
10,325,000
12,428,413
City
of
Deltona
,
Utility
System
,
Revenue
,
2013
,
Pre-Refunded
,
AGMC
Insured
,
5.125
%
,
10/01/39
........................................................
5,000,000
5,457,370
City
of
Gainesville
,
Utilities
System,
Revenue,
2017
A,
5%,
10/01/36
..........................
7,150,000
8,699,283
Utilities
System,
Revenue,
2019
A,
5%,
10/01/47
..........................
31,640,000
39,029,920
City
of
Jacksonville
,
Genesis
Health,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
5
%
,
11/01/50
.....................................................
15,000,000
18,062,966
City
of
Miami
Beach
,
GO,
2019,
Refunding,
4%,
5/01/44
.....................................
15,000,000
17,222,296
Revenue,
2015
A,
5%,
9/01/40
........................................
11,000,000
12,641,878
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group
,
Revenue
,
2020
,
Refunding
,
4
%
,
9/01/50
........................................
3,780,000
4,057,824
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
8/15/42
...................
15,000,000
18,170,903
City
of
St.
Petersburg
,
Public
Utility
,
Revenue
,
2018
,
Refunding
,
4
%
,
10/01/43
......
15,000,000
17,185,430
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/45
..................................................
2,000,000
2,272,965
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/35
............
755,000
512,728
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/36
............
800,000
520,491
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/37
............
800,000
497,737
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/38
............
1,050,000
623,687
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/39
............
1,000,000
566,702
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/49
............
5,150,000
1,856,253
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/49
.....
15,000,000
16,816,745
County
of
Miami-Dade
,
Aviation,
Revenue,
2019
A,
5%,
10/01/49
................................
22,500,000
27,124,031
Transit
System,
Revenue,
2015,
Refunding,
5%,
7/01/35
....................
7,000,000
8,054,276
Water
&
Sewer
System,
Revenue,
2013
A,
Pre-Refunded,
5%,
10/01/42
.........
20,000,000
20,880,394
Water
&
Sewer
System,
Revenue,
2019
B,
4%,
10/01/44
....................
27,500,000
31,742,282
County
of
Osceola
,
Transportation,
Revenue,
2019
A-1,
Refunding,
5%,
10/01/44
.................
2,000,000
2,461,723
Transportation,
Revenue,
2019
A-1,
Refunding,
5%,
10/01/49
.................
2,500,000
3,058,912
County
of
Seminole
,
Water
&
Sewer
,
Revenue
,
2019
,
Refunding
,
4
%
,
10/01/40
.....
8,500,000
9,821,411
Escambia
County
Health
Facilities
Authority
,
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/34
........................................................
2,650,000
3,285,131
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
Escambia
County
Health
Facilities
Authority,
(continued)
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/36
........................................................
$
3,900,000
$
4,814,667
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/37
........................................................
6,015,000
7,407,121
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/45
........................................................
18,985,000
21,004,165
Baptist
Health
Care
Corp.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/50
........................................................
4,450,000
4,900,663
Florida
Municipal
Loan
Council
,
Revenue
,
2011
D
,
AGMC
Insured
,
5.5
%
,
10/01/41
..
4,750,000
4,769,336
Greater
Orlando
Aviation
Authority
,
Revenue
,
2019
A
,
4
%
,
10/01/49
..............
10,000,000
11,223,017
Hillsborough
County
Aviation
Authority
,
Revenue,
2015
B,
5%,
10/01/44
.......................................
10,000,000
11,228,129
Revenue,
2018
A,
5%,
10/01/48
.......................................
20,000,000
24,060,018
Hillsborough
County
Industrial
Development
Authority
,
Florida
Health
Sciences
Center,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
8/01/55
.......................
3,500,000
3,936,536
Hollywood
Beach
Community
Development
District
I
,
Special
Assessment
,
2020
,
Refunding
,
4
%
,
10/01/45
............................................
4,000,000
4,539,457
JEA
Electric
System
,
Revenue,
2020
A,
Refunding,
4%,
10/01/35
..............................
5,000,000
5,898,272
Revenue,
2020
A-3,
Refunding,
4%,
10/01/38
.............................
9,080,000
10,672,563
Revenue,
2020
A-3,
Refunding,
4%,
10/01/39
.............................
9,300,000
10,906,371
Lee
Memorial
Health
System
,
Lee
Memorial
Health
System
Obligated
Group
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
4/01/44
.....................................
4,220,000
5,132,768
Martin
County
Health
Facilities
Authority
,
Martin
Memorial
Medical
Center
Obligated
Group
,
Revenue
,
2012
,
Pre-Refunded
,
AGMC
Insured
,
5.5
%
,
11/15/42
..........
3,800,000
3,807,279
Miami
Beach
Redevelopment
Agency
,
Tax
Allocation
,
2015
A
2015
B
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/44
..........................................
12,000,000
13,092,325
Miami-Dade
County
Expressway
Authority
,
Revenue,
2013
A,
Refunding,
5%,
7/01/29
...............................
10,000,000
10,319,088
Revenue,
2013
A,
Refunding,
5%,
7/01/32
...............................
6,375,000
6,572,326
Revenue,
A,
5%,
7/01/40
............................................
30,265,000
30,359,185
North
Sumter
County
Utility
Dependent
District
,
Revenue,
Senior
Lien,
2019,
5%,
10/01/49
...............................
3,635,000
4,417,415
Revenue,
Senior
Lien,
2019,
5%,
10/01/54
...............................
7,000,000
8,477,529
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/39
.....
6,000,000
7,079,852
Orlando
Health
Obligated
Group,
Revenue,
2019
A,
5%,
10/01/47
.............
5,000,000
6,083,392
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/47
............................................
14,000,000
15,269,353
Palm
Beach
County
Educational
Facilities
Authority
,
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/41
.......................................................
3,695,000
4,178,802
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/46
.......................................................
3,785,000
4,212,567
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/51
.......................................................
3,075,000
3,391,936
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
B
,
5
%
,
11/15/42
......................
500,000
602,018
River
Hall
Community
Development
District
,
Special
Assessment
,
2021
A-1
,
Refunding
,
3
%
,
5/01/36
......................................................
750,000
743,286
School
Board
of
Miami-Dade
County
(The)
,
COP
,
2013
A
,
Pre-Refunded
,
5
%
,
5/01/31
10,000,000
10,698,781
South
Broward
Hospital
District
,
South
Broward
Hospital
District
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/01/45
.........................................
20,715,000
24,936,309
South
Fork
East
Community
Development
District
,
Special
Assessment,
2021,
Refunding,
3%,
5/01/26
........................
100,000
103,974
Special
Assessment,
2021,
Refunding,
3%,
5/01/31
........................
250,000
252,904
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
South
Fork
East
Community
Development
District,
(continued)
Special
Assessment,
2021,
Refunding,
3%,
5/01/38
........................
$
600,000
$
593,291
St.
Johns
County
Industrial
Development
Authority
,
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/55
...
3,750,000
4,203,774
State
of
Florida
,
GO
,
1999
D
,
Refunding
,
6
%
,
6/01/23
........................
17,500,000
19,087,992
Tampa-Hillsborough
County
Expressway
Authority
,
Revenue
,
2017
,
5
%
,
7/01/47
....
10,000,000
11,900,821
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
10/01/46
..........
5,000,000
5,910,362
690,459,138
Georgia
2.8%
Atlanta
Development
Authority
(The)
,
City
of
Atlanta
Hotel
Motel
Tax,
Revenue,
2015
A-1,
5.25%,
7/01/44
............
3,000,000
3,430,397
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/24
..
6,385,000
6,857,425
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/25
..
6,955,000
7,677,579
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
5,000,000
5,644,359
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/27
..
5,000,000
5,755,245
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
15,040,000
17,224,001
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
15,800,000
18,078,071
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/40
...............
29,500,000
33,724,199
Water
&
Wastewater,
Revenue,
2018
A,
Refunding,
5%,
11/01/40
..............
4,655,000
5,688,667
Water
&
Wastewater,
Revenue,
2018
A,
Refunding,
5%,
11/01/41
..............
4,845,000
5,916,559
Water
&
Wastewater,
Revenue,
2018
C,
Refunding,
4%,
11/01/38
..............
13,550,000
15,654,964
Clarke
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
7/01/46
...............................
10,835,000
12,524,236
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
4/01/41
...............................
50,000
57,916
Coweta
County
Development
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/01/44
...............................
10,000,000
12,319,068
Development
Authority
for
Fulton
County
,
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
........................................................
11,005,000
12,720,740
WellStar
Health
System
Obligated
Group,
Revenue,
2017,
5%,
4/01/47
.........
5,000,000
5,907,299
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.,
Revenue,
2017,
Refunding,
4.125%,
11/01/45
.........
21,000,000
23,573,117
Fayette
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
7/01/39
...............................
11,420,000
12,691,715
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
5,000,000
5,341,960
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
2/15/45
.................
13,040,000
15,252,035
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
2,250,000
2,633,642
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/28
......................................
5,000,000
6,287,384
Revenue,
2019
A,
5%,
5/15/49
........................................
11,500,000
16,627,857
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
Refunding,
5%,
1/01/44
...............................
4,580,000
5,522,309
Revenue,
2019
B,
5%,
1/01/59
........................................
4,000,000
4,766,580
Revenue,
2021
A,
Refunding,
5%,
1/01/63
...............................
2,000,000
2,384,711
Private
Colleges
&
Universities
Authority
,
Emory
University,
Revenue,
2013
A,
5%,
10/01/43
.........................
10,000,000
10,808,319
Emory
University,
Revenue,
2019
B,
Refunding,
5%,
9/01/48
.................
6,005,000
7,448,305
Emory
University,
Revenue,
2020
B,
Refunding,
4%,
9/01/39
.................
2,100,000
2,481,192
Emory
University,
Revenue,
2020
B,
Refunding,
4%,
9/01/40
.................
2,000,000
2,358,296
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
Savannah
Hospital
Authority
,
St.
Joseph's/Candler
Health
System
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/43
...............................
$
15,000,000
$
17,004,019
State
of
Georgia
,
GO
,
2017
A
,
4
%
,
2/01/36
................................
10,000,000
11,379,206
315,741,372
Hawaii
1.0%
City
&
County
Honolulu
,
Wastewater
System
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
7/01/47
.........................................................
25,000,000
29,892,375
State
of
Hawaii
,
Airports
System,
Revenue,
2018
A,
5%,
7/01/43
...........................
15,000,000
18,050,267
Airports
System,
Revenue,
2018
A,
5%,
7/01/48
...........................
15,450,000
18,479,655
Airports
System,
Revenue,
2020
A,
4%,
7/01/45
...........................
8,125,000
9,158,932
Airports
System,
Revenue,
2020
D,
Refunding,
4%,
7/01/39
..................
10,000,000
11,557,461
State
of
Hawaii
Department
of
Budget
&
Finance
,
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
Refunding,
3.2%,
7/01/39
..........
10,000,000
10,804,023
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
3.5%,
10/01/49
..................
17,035,000
17,670,900
115,613,613
Idaho
0.2%
Idaho
Health
Facilities
Authority
,
St.
Luke's
Health
System
Ltd.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/36
........................................................
4,200,000
5,155,779
St.
Luke's
Health
System
Ltd.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/37
........................................................
3,500,000
4,287,342
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
ID,
4%,
12/01/43
.........
6,000,000
6,881,063
16,324,184
Illinois
6.0%
Chicago
Midway
International
Airport
,
Revenue,
1998
C,
Refunding,
AGMC,
NATL
RE
Insured,
5.5%,
1/01/24
.........
9,970,000
10,585,427
Revenue,
Second
Lien,
2016
B,
Refunding,
5%,
1/01/46
....................
18,420,000
21,373,369
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien,
2016
D,
5.25%,
1/01/42
............................
10,000,000
11,979,568
Revenue,
Senior
Lien,
2016
D,
5%,
1/01/47
..............................
18,000,000
21,317,755
Revenue,
Senior
Lien,
2020
C,
Refunding,
4%,
1/01/37
.....................
10,015,000
11,541,104
Revenue,
Senior
Lien,
2020
C,
Refunding,
4%,
1/01/38
.....................
3,000,000
3,450,032
Chicago
Park
District
,
GO,
2020
C,
BAM
Insured,
4%,
1/01/41
.................................
1,400,000
1,596,274
GO,
2020
C,
BAM
Insured,
4%,
1/01/42
.................................
4,300,000
4,890,476
GO,
2020
D,
BAM
Insured,
4%,
1/01/37
.................................
1,000,000
1,149,941
GO,
2020
D,
BAM
Insured,
4%,
1/01/38
.................................
1,000,000
1,147,576
GO,
2020
D,
BAM
Insured,
4%,
1/01/39
.................................
1,000,000
1,145,050
GO,
2020
F-2,
Refunding,
4%,
1/01/36
..................................
1,250,000
1,422,873
GO,
2020
F-2,
Refunding,
5%,
1/01/37
..................................
2,000,000
2,449,827
GO,
2020
F-2,
Refunding,
5%,
1/01/39
..................................
1,625,000
1,979,502
GO,
2020
F-2,
Refunding,
5%,
1/01/40
..................................
1,625,000
1,971,822
Chicago
Transit
Authority
Sales
Tax
Receipts
Fund
,
Revenue,
2011,
Pre-Refunded,
5.25%,
12/01/40
..........................
10,000,000
10,041,131
Revenue,
Second
Lien,
2020
A,
Refunding,
4%,
12/01/50
....................
9,000,000
10,242,240
City
of
Chicago
,
GO
,
1998
,
NATL
Insured
,
ETM,
5.75
%
,
1/01/23
................
8,955,000
9,279,841
City
of
Granite
City
,
Waste
Management
of
Illinois,
Inc.
,
Revenue
,
2002
,
1.25
%
,
5/01/27
.........................................................
5,750,000
5,725,692
County
of
Cook
,
GO,
2021
A,
Refunding,
5%,
11/15/31
..................................
3,650,000
4,749,961
GO,
2021
A,
Refunding,
5%,
11/15/32
..................................
2,400,000
3,114,877
GO,
2021
A,
Refunding,
5%,
11/15/33
..................................
2,350,000
3,041,487
Sales
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/15/37
......................
1,625,000
2,059,970
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
County
of
Cook,
(continued)
Sales
Tax,
Revenue,
2021
A,
Refunding,
5%,
11/15/38
......................
$
2,315,000
$
2,919,431
Illinois
Finance
Authority
,
Bradley
University,
Revenue,
2021
A,
Refunding,
4%,
8/01/46
................
2,250,000
2,522,945
Bradley
University,
Revenue,
2021
A,
Refunding,
4%,
8/01/51
................
4,650,000
5,193,675
Carle
Foundation
Obligated
Group
(The),
Revenue,
2016
A,
Refunding,
5%,
2/15/45
20,000,000
23,050,904
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/41
.........
3,480,000
3,859,269
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
3.25%,
5/15/27
........................................................
2,500,000
2,504,575
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/41
..............................
750,000
861,096
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/51
..............................
1,000,000
1,128,014
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/56
..............................
750,000
838,983
Mercy
Health
Corp.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
12/01/46
...
30,000,000
34,827,585
Macon
County
School
District
No.
61
Decatur
,
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/40
.......................
3,700,000
4,100,237
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/45
.......................
3,125,000
3,437,130
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
7,555,000
8,888,183
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn
.,
12/15/32
......................
3,490,000
2,721,256
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn
.,
12/15/33
......................
24,000,000
18,172,701
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn
.,
12/15/34
......................
1,655,000
1,214,162
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn
.,
6/15/38
.......................
2,325,000
1,518,672
Revenue,
2002
A,
AGMC,
NATL
Insured,
Zero
Cpn
.,
12/15/40
................
6,000,000
3,670,613
Revenue,
2002
B,
NATL
RE
Insured,
ETM,
5.65%,
6/15/22
...................
30,000,000
30,993,798
d
Revenue,
2022
A,
Refunding,
4%,
12/15/47
..............................
15,060,000
16,784,855
d
Revenue,
2022
A,
Refunding,
4%,
6/15/52
...............................
20,190,000
22,439,913
Southwestern
Illinois
Development
Authority
,
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn
.,
12/01/24
..................................
3,850,000
3,718,190
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn
.,
12/01/26
..................................
7,700,000
7,108,223
St.
Clair
County
School
District
No.
189
East
St.
Louis
,
GO
,
2008
,
Refunding
,
AMBAC
Insured
,
5.125
%
,
1/01/28
............................................
7,135,000
7,143,893
State
of
Illinois
,
GO,
2012,
AGMC
Insured,
5%,
3/01/27
.................................
11,500,000
11,673,338
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
4,215,000
4,897,033
GO,
2016,
Refunding,
5%,
2/01/29
.....................................
3,675,000
4,304,566
GO,
2016,
5%,
11/01/35
.............................................
1,000,000
1,161,622
GO,
2017
A,
5%,
12/01/35
...........................................
2,000,000
2,336,820
GO,
2017
A,
4.25%,
12/01/40
.........................................
3,150,000
3,473,277
GO,
2017
C,
5%,
11/01/29
...........................................
17,470,000
20,705,056
GO,
2017
D,
3.25%,
11/01/26
.........................................
1,750,000
1,917,259
GO,
2017
D,
5%,
11/01/26
...........................................
8,800,000
10,384,357
GO,
2017
D,
5%,
11/01/27
...........................................
10,970,000
13,160,061
GO,
2017
D,
5%,
11/01/28
...........................................
5,155,000
6,148,986
GO,
2018
A,
Refunding,
5%,
10/01/28
..................................
3,000,000
3,650,552
GO,
2018
A,
Refunding,
5%,
10/01/33
..................................
14,245,000
17,018,997
GO,
2018
A,
5%,
5/01/34
............................................
3,010,000
3,557,810
GO,
2018
A,
5%,
5/01/35
............................................
6,455,000
7,615,565
GO,
2018
B,
Refunding,
5%,
10/01/32
..................................
2,010,000
2,407,857
GO,
2019
B,
4%,
11/01/34
...........................................
2,600,000
2,938,299
GO,
2019
B,
4%,
11/01/38
...........................................
1,810,000
2,025,318
GO,
2019
C,
4%,
11/01/40
...........................................
2,500,000
2,783,138
GO,
2019
C,
4%,
11/01/43
...........................................
4,190,000
4,625,926
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
State
of
Illinois,
(continued)
GO,
2020,
5.5%,
5/01/30
............................................
$
13,815,000
$
17,675,580
GO,
2020,
5.5%,
5/01/39
............................................
20,030,000
24,866,832
GO,
2020,
5.75%,
5/01/45
...........................................
7,965,000
9,895,424
GO,
2020
B,
5%,
10/01/28
...........................................
10,000,000
12,168,505
GO,
2020
C,
4%,
10/01/37
...........................................
3,685,000
4,171,363
GO,
2020
C,
4%,
10/01/38
...........................................
9,750,000
10,999,697
GO,
2020
C,
4%,
10/01/39
...........................................
4,585,000
5,156,383
GO,
2020
C,
4%,
10/01/42
...........................................
2,010,000
2,245,010
GO,
2021
A,
5%,
3/01/32
............................................
3,425,000
4,271,163
GO,
2021
A,
5%,
3/01/34
............................................
5,730,000
7,097,329
GO,
2021
A,
5%,
3/01/36
............................................
1,000,000
1,231,132
Sales
Tax,
Revenue,
2021
A,
4%,
6/15/25
...............................
5,000,000
5,575,769
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/29
.............
6,000,000
7,484,714
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/30
.............
5,000,000
6,331,374
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/31
.............
4,500,000
5,794,809
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
5%,
6/15/32
.............
4,500,000
5,773,882
Sales
Tax,
Revenue,
Junior
Lien,
2021
C,
Refunding,
4%,
6/15/33
.............
1,750,000
2,056,536
Tri-County
River
Valley
Development
Authority
,
Cedars
of
Lebanon
Affordable
LLC,
Revenue,
2021
A,
3.75%,
12/01/36
.........
10,205,000
9,839,383
Cedars
of
Lebanon
Affordable
LLC,
Revenue,
2021
B,
5.75%,
12/01/36
.........
790,000
789,670
c
Upper
Illinois
River
Valley
Development
Authority
,
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
144A,
2020
A,
Refunding,
4%,
12/01/40
...........................................
7,565,000
7,667,789
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
144A,
2020
A,
Refunding,
4.5%,
12/01/50
.........................................
34,795,000
35,235,912
Village
of
Bolingbrook
,
GO
,
2013
A
,
Pre-Refunded
,
Zero
Cpn
.,
1/01/36
...........
19,000,000
9,828,062
678,816,253
Indiana
3.0%
City
of
Indianapolis
,
Department
of
Public
Utilities
Water
System
,
Revenue,
First
Lien
,
2016
B
,
Refunding
,
5
%
,
10/01/37
......................................
15,000,000
17,870,010
Hammond
Multi-School
Building
Corp.
,
Hammond
School
City
,
Revenue
,
2018
,
5
%
,
7/15/38
.........................................................
3,000,000
3,602,098
Indiana
Finance
Authority
,
BHI
Senior
Living
Obligated
Group,
Revenue,
2016
A,
5.25%,
11/15/46
.........
11,955,000
13,657,743
BHI
Senior
Living
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
............
15,000,000
16,918,463
BHI
Senior
Living
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/41
...
7,250,000
8,298,228
Citizens
Wastewater
of
Westfield
LLC,
Revenue,
2019
A,
Refunding,
5%,
10/01/48
16,665,000
20,289,206
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012
A,
5%,
10/01/37
...............
5,000,000
5,206,294
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012
A,
4%,
10/01/42
...............
24,690,000
25,358,272
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2014
A,
5%,
10/01/39
...............
30,000,000
33,593,730
Deaconess
Health
System
Obligated
Group,
Revenue,
2015
A,
Refunding,
5%,
3/01/39
........................................................
5,000,000
5,741,394
East
End
Crossing
Partners
LLC,
Revenue,
2013
A,
Pre-Refunded,
5.25%,
1/01/51
20,000,000
21,578,936
Indianapolis
Power
&
Light
Co.,
Revenue,
2021
A,
Refunding,
1.4%,
8/01/29
.....
5,000,000
4,923,382
Marion
County
Capital
Improvement
Board,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/37
........................................................
10,000,000
11,599,215
Ohio
Valley
Electric
Corp.,
Revenue,
2010
B,
2.5%,
11/01/30
.................
3,925,000
3,941,445
Indiana
Municipal
Power
Agency
,
Revenue,
2016
A,
Refunding,
4%,
1/01/42
...............................
5,860,000
6,485,013
Revenue,
2016
A,
Refunding,
5%,
1/01/42
...............................
21,290,000
25,186,210
Indiana
University
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
6/01/45
..................
8,525,000
9,916,729
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
2017,
Refunding,
5%,
1/01/40
.................................
23,225,000
27,861,943
Revenue,
2019
A,
4%,
2/01/44
........................................
6,050,000
6,989,240
Revenue,
2019
A,
5%,
2/01/49
........................................
41,970,000
51,213,351
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Indiana
(continued)
Indianapolis
Local
Public
Improvement
Bond
Bank,
(continued)
Revenue,
2021
A,
Refunding,
5%,
6/01/35
...............................
$
8,185,000
$
10,477,598
Northern
Indiana
Commuter
Transportation
District
,
Revenue
,
2016
,
5
%
,
7/01/41
...
6,000,000
7,036,882
337,745,382
Iowa
0.3%
Iowa
Finance
Authority
,
Iowa
Health
System
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
2/15/48
..
7,500,000
9,002,802
State
Revolving
Fund,
Revenue,
2017,
Refunding,
5%,
8/01/42
...............
16,000,000
19,340,557
Iowa
Tobacco
Settlement
Authority
,
Revenue
,
2021
A-2
,
1
,
Refunding
,
4
%
,
6/01/49
..
7,500,000
8,338,185
36,681,544
Kansas
0.7%
Butler
County
Unified
School
District
No.
490
El
Dorado
,
GO
,
2016
B
,
BAM
Insured
,
4
%
,
9/01/43
......................................................
10,000,000
11,094,970
University
of
Kansas
Hospital
Authority
,
University
of
Kansas
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
3/01/47
.........................
23,115,000
27,361,332
Wyandotte
County-Kansas
City
Unified
Government
,
Utility
System,
Revenue,
2014
A,
Refunding,
5%,
9/01/44
....................
3,000,000
3,329,350
Utility
System,
Revenue,
2016
A,
5%,
9/01/45
............................
10,000,000
11,399,572
Utility
System,
Revenue,
2016
C,
Refunding,
5%,
9/01/41
...................
5,000,000
5,876,074
Utility
System,
Revenue,
2016
C,
Refunding,
5%,
9/01/46
...................
16,565,000
19,337,491
78,398,789
Kentucky
0.2%
Kentucky
Municipal
Power
Agency
,
Revenue,
2015
A,
Refunding,
NATL
Insured,
5%,
9/01/42
....................
10,000,000
11,476,566
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/34
....................
5,000,000
5,965,224
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/35
....................
7,750,000
9,237,372
26,679,162
Louisiana
3.2%
City
of
Shreveport
,
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
10,000,000
11,791,459
Water
&
Sewer,
Revenue,
Junior
Lien,
2019
B,
AGMC
Insured,
4%,
12/01/44
.....
6,535,000
7,328,361
East
Baton
Rouge
Sewerage
Commission
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
2/01/45
20,000,000
23,025,680
Jefferson
Sales
Tax
District
,
Revenue
,
2019
B
,
AGMC
Insured
,
4
%
,
12/01/42
.......
20,000,000
23,498,346
Lafayette
Consolidated
Government
,
Revenue
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/30
........................................................
5,000,000
5,809,974
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
c
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
10,000,000
10,840,637
Louisiana
Community
&
Technical
College
System,
Revenue,
2014,
Pre-Refunded,
5%,
10/01/39
...................................................
10,000,000
11,333,684
c
Parish
of
Assumption,
Revenue,
144A,
2021,
3.875%,
11/01/45
...............
4,880,000
4,941,114
c
Parish
of
St.
Tammany
LA
GOMESA,
Revenue,
144A,
2020,
3.875%,
11/01/45
....
3,600,000
3,735,474
c
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
10/01/43
...
3,877,088
3,889,960
c
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.25%,
10/01/48
6,350,000
6,370,834
c
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.5%,
10/01/53
.
8,000,000
8,025,941
c
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
5%,
10/01/61
...
10,000,000
10,031,678
Louisiana
Public
Facilities
Authority
,
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/47
..............................................
35,000,000
41,236,163
Louisiana
Children's
Medical
Center
Obligated
Group,
Revenue,
2020
A,
4%,
6/01/50
5,990,000
6,808,082
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/51
..............................................
15,000,000
16,816,215
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Louisiana
(continued)
Louisiana
Public
Facilities
Authority,
(continued)
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/56
..............................................
$
11,295,000
$
12,657,292
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2002
B,
ETM,
5.75%,
5/15/23
10,000,000
10,823,633
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
5/15/47
7,500,000
8,409,482
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/42
20,000,000
23,523,586
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
3%,
5/15/47
..............................................
9,925,000
10,517,769
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
5/15/49
........................................................
10,000,000
11,384,996
c
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.375%,
1/01/40
2,500,000
2,856,950
c
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
14,000,000
15,887,593
Tulane
University,
Revenue,
2020
A,
Refunding,
4%,
4/01/40
.................
3,750,000
4,335,408
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/45
.................
3,500,000
4,328,738
Louisiana
Stadium
&
Exposition
District
,
Revenue,
2020,
5%,
7/03/23
.........................................
5,700,000
5,997,207
Revenue,
2021,
4%,
7/03/23
.........................................
3,325,000
3,481,462
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017
B
,
5
%
,
1/01/48
........................................
4,000,000
4,689,284
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
Revenue
,
2019
,
4
%
,
8/01/44
.........................................................
6,000,000
6,906,994
b
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B-2
,
Refunding
,
Mandatory
Put
,
2.375
%
,
7/01/26
......................................
7,500,000
7,870,600
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2020
E,
5%,
4/01/44
........................................
8,110,000
9,760,640
Revenue,
2020
E,
5%,
4/01/47
........................................
10,000,000
11,980,345
Terrebonne
Levee
&
Conservation
District
,
Revenue,
2020
B,
Refunding,
4%,
6/01/40
...............................
5,065,000
5,712,289
Revenue,
2020
B,
Refunding,
4%,
6/01/41
...............................
5,165,000
5,814,942
362,422,812
Maine
0.2%
Maine
Health
&
Higher
Educational
Facilities
Authority
,
MaineHealth
Obligated
Group,
Revenue,
2018
A,
5%,
7/01/43
................
3,000,000
3,607,961
MaineHealth
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/39
................
1,075,000
1,253,574
Maine
Turnpike
Authority
,
Revenue
,
2018
,
5
%
,
7/01/47
.......................
15,500,000
18,582,138
23,443,673
Maryland
1.2%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2013
C,
Pre-Refunded,
5%,
7/01/38
.........
5,000,000
5,509,832
Wastewater
Utility
Fund,
Revenue,
2013
C,
Pre-Refunded,
5%,
7/01/43
.........
10,000,000
11,019,665
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/39
.....................
10,000,000
11,302,666
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/44
.....................
10,000,000
11,285,087
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/39
.........................
9,430,000
10,658,414
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/44
.........................
5,500,000
6,206,798
Maryland
Economic
Development
Corp.
,
Morgan
State
University,
Revenue,
2020,
4.25%,
7/01/50
....................
1,000,000
1,123,105
Morgan
State
University,
Revenue,
2020,
5%,
7/01/56
......................
1,415,000
1,681,708
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
12,500,000
14,795,106
Adventist
Healthcare
Obligated
Group,
Revenue,
2021
B,
4%,
1/01/51
..........
28,000,000
31,662,840
Frederick
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
7/01/45
..
1,945,000
2,230,238
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.....
3,000,000
3,339,070
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/42
..............
7,500,000
9,010,392
University
of
Maryland
Medical
System
Obligated
Group,
Revenue,
1991
B,
NATL
Insured,
ETM,
7%,
7/01/22
.........................................
75,000
78,303
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Maryland
(continued)
e
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/33
...............
$
3,205,000
$
3,999,307
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/34
...............
3,420,000
3,956,479
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/35
...............
3,555,000
4,092,427
131,951,437
Massachusetts
2.7%
Commonwealth
of
Massachusetts
,
GO,
2016
G,
4%,
9/01/42
............................................
20,000,000
22,684,500
GO,
2017
B,
5%,
4/01/47
............................................
12,335,000
14,908,698
GO,
2018
A,
5%,
1/01/41
............................................
15,000,000
18,256,719
GO,
2018
A,
5%,
1/01/46
............................................
10,000,000
12,135,915
GO,
2019
A,
5.25%,
1/01/44
..........................................
10,000,000
12,582,256
Transportation
Fund,
Revenue,
2017
A,
5%,
6/01/47
.......................
25,055,000
30,360,015
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
15,000,000
18,428,304
Massachusetts
Bay
Transportation
Authority
,
Sales
Tax
,
Revenue
,
2005
A
,
5
%
,
7/01/28
10,000,000
12,614,834
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999
A,
5.75%,
8/01/29
.....................................
450,000
451,896
Revenue,
2002
A,
5%,
8/01/32
........................................
225,000
225,814
Massachusetts
Development
Finance
Agency
,
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2018
J-2,
5%,
7/01/53
......
5,000,000
5,975,491
Dana-Farber
Cancer
Institute
Obligated
Group,
Revenue,
2016
N,
5%,
12/01/41
..
10,135,000
11,994,543
Mass
General
Brigham,
Inc.,
Revenue,
2016
Q,
Refunding,
5%,
7/01/47
.........
15,000,000
17,658,198
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
.......
15,415,000
17,490,411
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
5%,
7/01/33
........................................................
600,000
779,825
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
5%,
7/01/34
........................................................
625,000
810,036
c
Waste
Management
of
Massachusetts,
Inc.,
Revenue,
144A,
2002,
1.25%,
5/01/27
3,250,000
3,236,261
Wellesley
College,
Revenue,
2012,
5%,
7/01/42
...........................
10,000,000
10,293,989
Worcester
Polytechnic
Institute,
Revenue,
2019,
5%,
9/01/59
.................
10,000,000
12,130,409
Massachusetts
Educational
Financing
Authority
,
Revenue,
2013
K,
5.25%,
7/01/29
.....................................
3,030,000
3,111,712
Revenue,
2017
B,
Refunding,
4.25%,
7/01/46
.............................
2,000,000
2,119,430
Revenue,
2021
C,
3%,
7/01/51
........................................
3,200,000
3,173,878
Massachusetts
Port
Authority
,
Revenue,
2019
C,
5%,
7/01/44
........................................
15,000,000
18,191,001
Revenue,
2019
C,
5%,
7/01/49
........................................
10,000,000
12,065,872
Bosfuel
Corp.,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
....................
7,500,000
8,996,473
Massachusetts
School
Building
Authority
,
Revenue
,
2018
A
,
4
%
,
2/15/43
..........
10,750,000
12,319,409
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien,
1,
Pre-Refunded,
5%,
11/01/39
......................
8,020,000
9,136,236
Revenue,
Senior
Lien,
2014-1,
5%,
11/01/39
.............................
8,185,000
9,229,561
Revenue,
Senior
Lien,
2014-1,
Pre-Refunded,
5%,
11/01/39
..................
3,795,000
4,310,985
305,672,671
Michigan
2.3%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006
B,
NATL
Insured,
5%,
7/01/36
.......................................
10,000
10,036
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2012
A,
Pre-Refunded,
AGMC
Insured,
5%,
7/01/39
..........................
10,000,000
10,322,231
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Senior
Lien,
2012
A,
Pre-Refunded,
5.25%,
7/01/39
....................................
12,000,000
12,406,575
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
2003
A,
NATL
Insured,
5%,
7/01/34
.........................................
10,000
10,037
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Michigan
(continued)
Detroit
City
School
District
,
GO,
2012
A,
Refunding,
5%,
5/01/30
...................................
$
1,245,000
$
1,274,431
GO,
2012
A,
Refunding,
5%,
5/01/33
...................................
1,500,000
1,535,077
Michigan
Finance
Authority
,
Beaumont
Health
Obligated
Group,
Revenue,
2016
A,
5%,
11/01/44
............
20,925,000
24,149,923
Bronson
Healthcare
Group
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/54
........................................................
25,000,000
29,260,120
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2019
A,
5%,
11/15/48
.....
25,920,000
31,647,768
McLaren
Health
Care
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
2/15/44
.....
20,000,000
23,053,058
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/36
...
1,000,000
1,174,378
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/37
...
2,000,000
2,341,480
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/38
...
1,500,000
1,752,031
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/39
...
1,500,000
1,746,609
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/40
...
1,000,000
1,161,703
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/49
...
4,000,000
4,433,208
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B-1,
2,
Refunding,
5%,
6/01/49
..
4,500,000
5,261,320
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2011
MI,
Pre-Refunded,
5%,
12/01/39
.......................................................
29,750,000
29,866,359
Michigan
State
Building
Authority
,
Revenue
,
2013
1-A
,
Refunding
,
5.25
%
,
10/15/44
..
20,655,000
22,528,828
Michigan
State
Hospital
Finance
Authority
,
Ascension
Health
Credit
Group,
Revenue,
2010
F-7,
Refunding,
5%,
11/15/47
....
10,000,000
11,822,842
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2008
C,
Pre-Refunded,
5%,
12/01/34
10,000,000
10,278,776
Michigan
Strategic
Fund
,
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
12/31/43
...
10,000,000
11,887,697
United
Methodist
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/49
...........................................
7,000,000
7,943,898
Pontiac
School
District
,
GO,
2020,
4%,
5/01/45
.............................................
7,940,000
9,245,021
GO,
2020,
4%,
5/01/50
.............................................
8,665,000
10,056,163
265,169,569
Minnesota
0.1%
City
of
St.
Cloud
,
CentraCare
Health
System
Obligated
Group
,
Revenue
,
2019
,
Refunding
,
5
%
,
5/01/48
.............................................
10,000,000
12,127,526
Mississippi
1.0%
Medical
Center
Educational
Building
Corp.
,
Mississippi
State
Institutions
of
Higher
Learning
,
Revenue
,
2017
,
Refunding
,
5
%
,
6/01/47
.........................
25,000,000
29,538,217
Mississippi
Business
Finance
Corp.
,
System
Energy
Resources,
Inc.
,
Revenue
,
2021
,
Refunding
,
2.375
%
,
6/01/44
..........................................
7,000,000
6,523,836
Mississippi
Development
Bank
,
City
of
Jackson
Water
&
Sewer
System,
Revenue,
2013,
AGMC
Insured,
6.875%,
12/01/40
.......................................................
3,400,000
3,803,289
c
County
of
Jackson,
Revenue,
144A,
2021,
3.625%,
11/01/36
.................
3,000,000
2,947,136
c
Mississippi
Home
Corp.
,
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
3.5%,
6/01/33
.
584,263
578,737
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4%,
6/01/46
..
1,000,000
987,597
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4.5%,
6/01/62
.
17,965,177
17,700,464
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
B-5,
5.2%,
6/01/36
5,600,000
5,524,041
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/36
...
6,350,000
7,422,439
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/46
...
30,000,000
34,686,753
109,712,509
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Missouri
0.9%
Cape
Girardeau
County
Industrial
Development
Authority
,
SoutheastHEALTH
Obligated
Group
,
Revenue
,
2021
,
4
%
,
3/01/41
....................................
$
3,225,000
$
3,625,157
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
4,000,000
4,437,913
Mercy
Health,
Revenue,
2014
F,
5%,
11/15/45
............................
25,000,000
28,089,215
SSM
Health
Care
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/48
............
7,500,000
8,948,359
Kansas
City
Industrial
Development
Authority
,
City
of
Kansas
City
Airport,
Revenue,
2019
B,
5%,
3/01/46
...................
13,500,000
16,112,492
City
of
Kansas
City
Airport,
Revenue,
2019
B,
5%,
3/01/54
...................
23,500,000
27,858,366
City
of
Kansas
City
Airport,
Revenue,
2020
A,
AGMC
Insured,
5%,
3/01/57
.......
9,000,000
10,778,187
St.
Louis
Municipal
Finance
Corp
,
City
of
St.
Louis
,
Revenue
,
2020
,
AGMC
Insured
,
5
%
,
10/01/49
.....................................................
5,000,000
6,095,584
105,945,273
Montana
0.2%
Montana
Facility
Finance
Authority
,
Benefis
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
2/15/41
.
2,650,000
3,113,643
Billings
Clinic
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
8/15/48
.......
10,000,000
12,086,814
Kalispell
Regional
Medical
Center
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
7/01/43
....................................................
6,440,000
7,481,186
22,681,643
Nebraska
0.4%
Douglas
County
Hospital
Authority
No.
2
,
Children's
Hospital
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
11/15/47
.......................................
10,000,000
11,760,915
Hospital
Authority
No.
1
of
Lancaster
County
,
Bryan
Medical
Center
Obligated
Group
,
Revenue
,
1992
,
NATL
Insured
,
ETM,
6.7
%
,
6/01/22
........................
325,000
336,913
Omaha
Public
Power
District
Nebraska
City
Station
Unit
2
,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/42
.............................
10,000,000
11,404,002
Revenue,
2016
A,
Refunding,
5%,
2/01/49
...............................
10,000,000
11,483,394
Public
Power
Generation
Agency
,
Revenue,
2016
A,
Refunding,
5%,
1/01/39
...............................
7,340,000
8,590,314
Revenue,
2016
A,
Refunding,
5%,
1/01/41
...............................
5,140,000
5,997,721
49,573,259
Nevada
0.3%
City
of
Carson
City
,
Carson
Tahoe
Regional
Healthcare
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
9/01/47
........................................
2,775,000
3,279,905
City
of
Henderson
,
GO
,
2020
A-1
,
4
%
,
6/01/45
.............................
10,000,000
11,684,199
Clark
County
School
District
,
GO,
2020
A,
AGMC
Insured,
4%,
6/15/36
................................
750,000
885,508
GO,
2020
A,
AGMC
Insured,
4%,
6/15/37
................................
875,000
1,030,343
GO,
2020
A,
AGMC
Insured,
4%,
6/15/38
................................
850,000
998,741
GO,
2020
A,
AGMC
Insured,
4%,
6/15/39
................................
1,000,000
1,172,271
GO,
2020
A,
AGMC
Insured,
4%,
6/15/40
................................
725,000
848,227
Las
Vegas
Convention
&
Visitors
Authority
,
County
of
Clark
&
City
of
Las
Vegas
Combined
Room
Tax
,
Revenue
,
2018
B
,
5
%
,
7/01/43
.......................
10,000,000
11,964,005
31,863,199
New
Hampshire
0.2%
New
Hampshire
Health
and
Education
Facilities
Authority
Act
,
Concord
Hospital
Obligated
Group,
Revenue,
2017,
5%,
10/01/47
.............
6,000,000
7,102,866
Elliot
Hospital
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
10/01/38
.......
4,000,000
4,644,481
University
System
of
New
Hampshire,
Revenue,
2015,
Refunding,
5%,
7/01/45
...
10,350,000
11,744,077
23,491,424
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Jersey
3.7%
New
Jersey
Economic
Development
Authority
,
Revenue,
2021
QQQ,
4%,
6/15/46
.....................................
$
1,500,000
$
1,691,926
Revenue,
2021
QQQ,
4%,
6/15/50
.....................................
1,000,000
1,121,928
New
Jersey
Transit
Corp.,
Revenue,
2020
A,
5%,
11/01/44
...................
7,200,000
8,696,609
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2013
NN,
Refunding,
5%,
3/01/28
........................................................
22,000,000
23,283,333
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/33
6,135,000
7,516,813
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/36
11,850,000
14,421,759
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
4.625%,
6/15/48
........................................................
2,000,000
2,346,240
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/48
8,000,000
9,537,892
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
5%,
6/15/39
3,250,000
3,978,600
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
4%,
6/15/44
2,725,000
3,057,051
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/41
....
26,000,000
30,307,464
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/34
..............................................
4,600,000
5,538,837
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/35
..............................................
4,800,000
5,765,756
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey
,
Revenue
,
2016
B
,
5
%
,
9/01/36
......................................................
14,000,000
16,302,467
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
2021
C,
Refunding,
3.25%,
12/01/51
...........................
2,000,000
2,005,717
Revenue,
Senior
Lien,
2018
A,
4%,
12/01/33
.............................
2,680,000
2,845,724
Revenue,
Senior
Lien,
2020
B,
3.5%,
12/01/39
............................
8,000,000
8,483,817
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2006
C,
NATL
Insured,
Zero
Cpn
.,
12/15/31
......................
6,275,000
5,112,261
Revenue,
2009
A,
Zero
Cpn
.,
12/15/36
..................................
500,000
344,243
Revenue,
2009
A,
Zero
Cpn
.,
12/15/39
..................................
71,750,000
44,449,003
Revenue,
2010
A,
Zero
Cpn
.,
12/15/40
..................................
4,750,000
2,840,841
Revenue,
2013
AA,
5%,
6/15/44
.......................................
1,000,000
1,062,083
Revenue,
2014
BB-1,
5%,
6/15/31
.....................................
3,000,000
3,698,102
Revenue,
2014
BB-1,
5%,
6/15/34
.....................................
3,250,000
3,972,786
Revenue,
2015
AA,
5%,
6/15/45
.......................................
15,000,000
16,916,958
Revenue,
2018
A,
Refunding,
5%,
12/15/32
..............................
18,400,000
22,564,695
Revenue,
2018
A,
Refunding,
5%,
12/15/35
..............................
8,200,000
9,998,465
Revenue,
2019
A,
Refunding,
5%,
12/15/39
..............................
785,000
960,985
Revenue,
2019
BB,
4%,
6/15/38
.......................................
2,000,000
2,252,284
Revenue,
2019
BB,
4%,
6/15/44
.......................................
4,000,000
4,455,200
Revenue,
2019
BB,
5%,
6/15/44
.......................................
5,150,000
6,168,437
Revenue,
2020
AA,
4%,
6/15/45
.......................................
5,160,000
5,828,069
Revenue,
2020
AA,
5%,
6/15/45
.......................................
4,840,000
5,949,603
Revenue,
2020
AA,
4%,
6/15/50
.......................................
35,255,000
39,554,964
Revenue,
2020
AA,
5%,
6/15/50
.......................................
16,245,000
19,877,023
d
Revenue,
2022
A,
4%,
6/15/39
........................................
10,000,000
11,422,670
d
Revenue,
2022
A,
4%,
6/15/41
........................................
7,500,000
8,519,115
New
Jersey
Turnpike
Authority
,
Revenue,
2015
E,
5%,
1/01/45
........................................
11,475,000
12,982,405
Revenue,
D,
5%,
1/01/28
............................................
15,265,000
18,013,889
State
of
New
Jersey
,
GO,
2020
A,
4%,
6/01/30
............................................
11,450,000
13,769,259
GO,
2020
A,
4%,
6/01/31
............................................
7,000,000
8,508,240
GO,
2020
A,
4%,
6/01/32
............................................
5,500,000
6,760,854
422,884,367
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Mexico
0.5%
City
of
Farmington
,
Public
Service
Co.
of
New
Mexico
,
Revenue
,
2016
B
,
Refunding
,
2.15
%
,
4/01/33
...................................................
$
23,500,000
$
22,829,322
New
Mexico
Hospital
Equipment
Loan
Council
,
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2015
A,
5%,
8/01/44
10,000,000
11,379,410
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
8/01/46
....................................................
15,000,000
17,968,156
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/33
.
1,000,000
1,161,904
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/35
.
1,000,000
1,156,682
54,495,474
New
York
11.0%
Buffalo
&
Erie
County
Industrial
Land
Development
Corp.
,
D'Youville
College
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/01/40
......................................
2,200,000
2,485,840
City
of
New
York
,
GO,
2002
D,
5.5%,
6/01/24
..........................................
180,000
180,728
GO,
2003
F,
5.25%,
1/15/23
..........................................
5,000
5,019
GO,
2018
E-1,
5%,
3/01/40
..........................................
14,570,000
17,582,986
GO,
2021
C,
4%,
8/01/40
............................................
6,500,000
7,551,485
GO,
2021
C,
4%,
8/01/41
............................................
3,000,000
3,476,503
GO,
2021
F-1,
5%,
3/01/37
..........................................
4,625,000
5,927,480
Hudson
Yards
Infrastructure
Corp.
,
Revenue,
Senior
Lien
,
2012
A
,
Refunding
,
AGMC
Insured
,
5
%
,
2/15/47
...............................................
15,195,000
15,209,227
Long
Island
Power
Authority
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
9/01/46
..........
13,000,000
15,301,863
Metropolitan
Transportation
Authority
,
Revenue,
2012
A-1,
5%,
11/15/40
.....................................
30,000,000
31,684,257
Revenue,
2013
A,
5%,
11/15/38
.......................................
11,800,000
12,472,461
Revenue,
2013
B,
5%,
11/15/43
.......................................
8,000,000
8,437,805
Revenue,
2015
A,
5%,
11/15/40
.......................................
7,000,000
7,837,677
Revenue,
2015
D-1,
Refunding,
5%,
11/15/32
............................
1,250,000
1,429,101
Revenue,
2016
B,
Refunding,
5%,
11/15/28
..............................
2,885,000
3,414,641
Revenue,
2016
C-1,
5.25%,
11/15/56
...................................
14,765,000
17,182,789
Revenue,
2016
D,
Refunding,
5%,
11/15/31
..............................
1,180,000
1,379,627
Revenue,
2017
A-2,
Refunding,
5%,
11/15/26
.............................
4,425,000
5,283,335
Revenue,
2017
C-1,
Refunding,
5%,
11/15/33
............................
1,780,000
2,119,146
Revenue,
2017
C-2,
Refunding,
Zero
Cpn
.,
11/15/29
.......................
2,090,000
1,787,467
Revenue,
2019
A-2,
5%,
11/15/45
.....................................
46,270,000
54,602,514
Revenue,
2020
A-1,
4%,
11/15/45
.....................................
10,000,000
11,089,389
Revenue,
2020
A-1,
5%,
11/15/48
.....................................
7,000,000
8,343,386
Revenue,
2020
C-1,
4.75%,
11/15/45
...................................
13,220,000
15,482,052
Revenue,
2020
C-1,
5%,
11/15/50
.....................................
12,150,000
14,458,801
Revenue,
2020
C-1,
5.25%,
11/15/55
...................................
24,500,000
29,503,652
Revenue,
2020
D,
5%,
11/15/44
.......................................
17,000,000
20,548,857
Revenue,
2020
D,
4%,
11/15/50
.......................................
20,000,000
22,152,456
New
York
City
,
Water
&
Sewer
System,
Revenue,
2013
DD,
5%,
6/15/35
....................
30,705,000
32,989,234
Water
&
Sewer
System,
Revenue,
2014
BB,
5%,
6/15/46
....................
15,000,000
16,050,061
Water
&
Sewer
System,
Revenue,
2015
FF,
Refunding,
5%,
6/15/39
............
25,000,000
28,688,223
Water
&
Sewer
System,
Revenue,
2017
CC,
Refunding,
5%,
6/15/46
...........
32,500,000
38,247,092
Water
&
Sewer
System,
Revenue,
2019
DD-1,
5.25%,
6/15/49
................
12,000,000
15,039,655
New
York
City
Industrial
Development
Agency
,
Yankee
Stadium
LLC
,
Revenue
,
2020
A
,
Refunding
,
AGMC
Insured
,
4
%
,
3/01/45
.................................
6,000,000
6,843,456
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2014
A-1,
5%,
11/01/34
......................
15,000,000
16,376,037
Future
Tax
Secured,
Revenue,
2016
E-1,
5%,
2/01/38
......................
10,000,000
11,611,058
Future
Tax
Secured,
Revenue,
2017
B,
5%,
8/01/36
........................
10,000,000
11,787,130
Future
Tax
Secured,
Revenue,
2017
B,
5%,
8/01/38
........................
10,000,000
11,761,790
Future
Tax
Secured,
Revenue,
2017
F-1,
5%,
5/01/42
......................
11,095,000
13,294,661
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
New
York
City
Transitional
Finance
Authority,
(continued)
Future
Tax
Secured,
Revenue,
2018
C-2,
5%,
5/01/38
......................
$
11,945,000
$
14,674,152
Future
Tax
Secured,
Revenue,
2018
C-3,
4%,
5/01/43
......................
19,800,000
22,586,112
Future
Tax
Secured,
Revenue,
2020
B-1,
4%,
11/01/47
.....................
10,000,000
11,561,071
New
York
Liberty
Development
Corp.
,
Revenue,
2011
-
1WTC,
5.25%,
12/15/43
................................
25,000,000
25,151,190
Revenue,
2021
A,
Refunding,
3%,
11/15/51
..............................
15,000,000
15,311,163
7
World
Trade
Center
II
LLC,
Revenue,
2012,
2,
Refunding,
5%,
9/15/43
........
6,500,000
6,600,362
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
40,000,000
55,665,576
Goldman
Sachs
Headquarters
LLC,
Revenue,
2007,
5.5%,
10/01/37
...........
24,995,000
36,398,231
New
York
Power
Authority
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/15/45
...........
8,055,000
9,398,273
New
York
State
Dormitory
Authority
,
Revenue,
2018
E,
Pre-Refunded,
5%,
3/15/46
............................
5,000
6,322
Revenue,
2018
E,
5%,
3/15/46
........................................
73,125,000
90,179,695
State
of
New
York
Personal
Income
Tax,
Revenue,
2015
B,
5%,
2/15/40
.........
20,000,000
22,650,190
State
of
New
York
Personal
Income
Tax,
Revenue,
2017
B,
Refunding,
5%,
2/15/42
24,410,000
29,463,927
State
of
New
York
Personal
Income
Tax,
Revenue,
2019
D,
Refunding,
4%,
2/15/47
50,000,000
57,485,550
State
of
New
York
Sales
Tax,
Revenue,
2017
A,
5%,
3/15/43
.................
10,000,000
11,974,195
State
of
New
York
Sales
Tax,
Revenue,
2018
A,
5%,
3/15/45
.................
25,000,000
30,454,532
State
of
New
York
Sales
Tax,
Revenue,
2018
C,
Refunding,
5%,
3/15/42
........
33,280,000
40,632,504
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/42
........
59,480,000
73,605,019
New
York
State
Thruway
Authority
,
Revenue,
2019
B,
4%,
1/01/45
........................................
20,000,000
22,810,192
Revenue,
Junior
Lien,
2016
A,
5%,
1/01/51
..............................
9,000,000
10,320,929
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2019
A
,
4
%
,
3/15/47
........................................
15,200,000
17,332,740
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.,
Revenue,
2018,
5%,
1/01/34
..........................
5,560,000
6,614,940
Delta
Air
Lines,
Inc.,
Revenue,
2020,
4%,
10/01/30
.........................
5,750,000
6,679,652
Delta
Air
Lines,
Inc.,
Revenue,
2020,
5%,
10/01/35
.........................
20,315,000
25,205,483
Delta
Air
Lines,
Inc.,
Revenue,
2020,
5%,
10/01/40
.........................
3,540,000
4,349,803
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
179,
5%,
12/01/38
.........................................
20,000,000
21,872,350
Revenue,
218,
4%,
11/01/47
.........................................
8,000,000
9,146,702
Revenue,
221,
4%,
7/15/45
..........................................
5,500,000
6,277,029
Triborough
Bridge
&
Tunnel
Authority
,
Revenue,
1999
B,
Pre-Refunded,
5.5%,
1/01/30
...........................
12,885,000
12,998,239
Revenue,
2020
A,
5%,
11/15/54
.......................................
8,500,000
10,644,765
1,247,669,829
North
Carolina
1.1%
County
of
Wake
,
GO
,
2010
C
,
Refunding
,
5
%
,
3/01/25
.......................
21,780,000
25,111,199
North
Carolina
Eastern
Municipal
Power
Agency
,
Revenue,
1993
B,
ETM,
6%,
1/01/22
...................................
1,250,000
1,261,999
Revenue,
1993
B,
ETM,
6.25%,
1/01/23
.................................
39,030,000
41,762,373
North
Carolina
Medical
Care
Commission
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
10/01/50
.......................................
2,200,000
2,604,569
North
Carolina
Turnpike
Authority
,
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
1/01/33
......................
25,000,000
20,577,837
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
1/01/34
......................
15,000,000
12,047,916
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
1/01/35
......................
15,215,000
11,884,178
Revenue,
2018
A,
Refunding,
4%,
1/01/39
...............................
10,000,000
11,542,754
126,792,825
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
North
Dakota
0.8%
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/32
..
$
1,405,000
$
1,808,927
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/33
..
2,000,000
2,560,709
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/34
..
2,375,000
3,031,421
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/35
..
1,815,000
2,113,596
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/36
..
3,625,000
4,203,450
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/37
..
1,575,000
1,819,268
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/38
..
2,300,000
2,650,185
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/40
..
3,375,000
3,869,984
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/41
..
1,875,000
2,143,897
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/46
..
8,850,000
9,997,823
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/51
..
10,650,000
11,962,685
State
Board
of
Higher
Education
of
the
State
of
North
Dakota
,
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/44
............................
10,000,000
11,451,148
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/50
............................
9,620,000
10,945,651
University
of
North
Dakota
,
COP,
2018
A,
5%,
4/01/48
...........................................
5,500,000
6,606,753
COP,
2018
A,
5%,
4/01/57
...........................................
10,000,000
11,908,800
87,074,297
Ohio
3.4%
Akron
Bath
Copley
Joint
Township
Hospital
District
,
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/37
3,915,000
4,517,365
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
5,700,000
6,597,746
American
Municipal
Power,
Inc.
,
Revenue,
2015
A,
Refunding,
5%,
2/15/39
...............................
5,000,000
5,482,781
Revenue,
2015
A,
Refunding,
5%,
2/15/42
...............................
2,500,000
2,741,390
Revenue,
2016
A,
Refunding,
5%,
2/15/46
...............................
20,000,000
23,109,166
Revenue,
2019
C,
Refunding,
4%,
2/15/39
...............................
18,795,000
21,450,978
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
A-3,
Pre-Refunded,
6.25%,
6/01/37
.............................
15,000,000
15,529,599
Revenue,
Senior
Lien,
2020
A-2,
1,
Refunding,
4%,
6/01/48
..................
10,235,000
11,330,492
City
of
Akron
,
Community
Learning
Center
Income
Tax
,
Revenue
,
2012
A
,
Refunding
,
5
%
,
12/01/29
.....................................................
10,000,000
10,277,465
City
of
Toledo
,
Water
System
,
Revenue
,
2013
,
Refunding
,
5
%
,
11/15/38
..........
20,000,000
21,301,790
Cleveland-Cuyahoga
County
Port
Authority
,
County
of
Cuyahoga
,
Revenue
,
2013
,
5
%
,
7/01/37
.........................................................
6,000,000
8,340,827
County
of
Butler
,
UC
Health
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/45
........................................................
7,500,000
8,722,541
County
of
Franklin
,
d
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/33
..........
5,270,000
5,796,295
d
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/34
..........
2,240,000
2,458,783
d
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/35
..........
2,900,000
3,172,669
OhioHealth
Obligated
Group,
Revenue,
2015,
5%,
5/15/40
...................
10,000,000
11,364,542
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
10,000,000
11,971,183
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
A-OH,
5%,
12/01/47
.......
10,800,000
13,060,176
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
A,
4%,
12/01/44
..........
5,640,000
6,485,572
County
of
Hamilton
,
Christ
Hospital
Obligated
Group,
Revenue,
2012,
Pre-Refunded,
AGMC
Insured,
5%,
6/01/42
........................................................
22,500,000
23,127,246
Sewer
System,
Revenue,
2013
A,
Refunding,
5%,
12/01/38
..................
12,000,000
13,065,779
UC
Health
Obligated
Group,
Revenue,
2020,
5%,
9/15/50
...................
7,500,000
9,153,931
Miami
University
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
9/01/45
...................
6,030,000
6,961,257
Northeast
Ohio
Regional
Sewer
District
,
Revenue,
2017,
Refunding,
4%,
11/15/38
................................
10,000,000
11,619,148
Revenue,
2017,
Refunding,
4%,
11/15/43
................................
10,000,000
11,501,818
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Ohio
(continued)
Ohio
Higher
Educational
Facility
Commission
,
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
$
1,350,000
$
1,564,753
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,185,000
1,366,036
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,530,000
2,909,900
Ohio
State
University
(The)
,
Revenue
,
2013
A
,
5
%
,
6/01/38
....................
10,000,000
10,672,351
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
2018
A,
5%,
2/15/43
........................................
20,000,000
24,113,134
Revenue,
Junior
Lien,
2013
A-4,
Zero
Cpn
.,
2/15/35
........................
35,000,000
43,744,470
State
of
Ohio
,
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
1/01/36
........................................................
6,500,000
7,484,615
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2019
B,
4%,
1/01/43
..
12,130,000
14,010,206
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
640,000
723,899
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/40
855,000
962,810
University
Hospitals
Health
System,
Inc.
Obligated
Group,
Revenue,
2012
A,
AGMC
Insured,
5%,
1/15/41
..............................................
7,000,000
7,065,514
383,758,227
Oklahoma
0.1%
Edmond
Public
Works
Authority
,
Revenue,
2017,
5%,
7/01/42
.........................................
4,000,000
4,801,619
Revenue,
2017,
5%,
7/01/47
.........................................
4,500,000
5,379,685
McGee
Creek
Authority
,
Revenue
,
1992
,
NATL
Insured
,
6
%
,
1/01/23
.............
80,000
82,899
Norman
Regional
Hospital
Authority
,
Norman
Regional
Hospital
Authority
Obligated
Group
,
Revenue
,
2019
,
5
%
,
9/01/45
....................................
3,500,000
4,247,142
14,511,345
Oregon
1.7%
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/50
...
12,210,000
14,840,654
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/15/50
.......................................
4,000,000
4,961,904
Oregon
City
School
District
No.
62
,
GO
,
2018
B
,
Refunding
,
5
%
,
6/15/49
..........
20,000,000
24,436,504
Oregon
Health
&
Science
University
,
Oregon
Health
&
Science
University
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/44
.........................
1,685,000
1,938,639
Port
of
Portland
,
Airport,
Revenue,
25
B,
5%,
7/01/49
....................................
12,720,000
15,258,018
Airport,
Revenue,
Twenty-Seven
A,
5%,
7/01/45
...........................
23,000,000
28,081,475
Salem
Hospital
Facility
Authority
,
Salem
Health
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/15/44
.............................................
16,880,000
20,720,428
State
of
Oregon
,
Department
of
Transportation,
Revenue,
Sub.
Lien,
2019
A,
Refunding,
4%,
11/15/42
15,000,000
17,610,359
Housing
&
Community
Services
Department,
Revenue,
2018
A,
3.6%,
1/01/33
....
6,060,000
6,508,911
Housing
&
Community
Services
Department,
Revenue,
2018
D,
3.8%,
7/01/34
....
6,285,000
6,854,106
University
of
Oregon
,
Revenue,
2018
A,
5%,
4/01/48
........................................
14,500,000
17,614,442
Revenue,
2020
A,
5%,
4/01/50
........................................
15,000,000
18,783,392
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn
.,
6/15/41
.......................................
5,725,000
2,944,436
GO,
2018
A,
Zero
Cpn
.,
6/15/42
.......................................
5,900,000
2,902,906
GO,
2018
A,
Zero
Cpn
.,
6/15/43
.......................................
5,500,000
2,588,291
186,044,465
Pennsylvania
2.0%
Allegheny
County
Sanitary
Authority
,
Revenue
,
2013
,
BAM
Insured
,
5.25
%
,
12/01/44
5,000,000
5,484,066
d
Allentown
Neighborhood
Improvement
Zone
Development
Authority
,
Revenue,
2022,
Refunding,
5%,
5/01/32
.................................
760,000
951,212
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
33
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Pennsylvania
(continued)
d
Allentown
Neighborhood
Improvement
Zone
Development
Authority,
(continued)
Revenue,
2022,
Refunding,
5%,
5/01/33
.................................
$
800,000
$
998,692
Revenue,
2022,
Refunding,
5%,
5/01/34
.................................
1,050,000
1,307,195
Revenue,
2022,
Refunding,
5%,
5/01/35
.................................
1,400,000
1,738,776
Revenue,
2022,
Refunding,
5%,
5/01/36
.................................
1,500,000
1,857,992
City
of
Philadelphia
,
Airport,
Revenue,
2020
C,
Refunding,
4%,
7/01/45
.........................
1,500,000
1,684,630
Water
&
Wastewater,
Revenue,
2015
A,
Pre-Refunded,
5%,
7/01/45
............
15,000,000
16,839,918
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development
,
Revenue
,
2015
A
,
5
%
,
6/01/33
..........
4,550,000
5,227,509
Commonwealth
of
Pennsylvania
,
GO,
First
Series
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
8/15/26
......................................................
20,805,000
24,295,844
Delaware
County
Regional
Water
Quality
Control
Authority
,
Revenue,
2016,
5%,
11/01/41
........................................
5,000,000
5,906,392
Revenue,
2016,
5%,
11/01/46
........................................
10,315,000
12,086,564
Erie
City
Water
Authority
,
Revenue
,
2016
,
Pre-Refunded
,
5
%
,
12/01/43
...........
5,000,000
6,091,868
Huntingdon
County
General
Authority
,
Juniata
College
,
Revenue
,
2021
TT-3
,
Refunding
,
5
%
,
10/01/51
............................................
5,000,000
5,959,837
Lancaster
Industrial
Development
Authority
,
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/31
........
440,000
481,075
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/37
........
345,000
376,213
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/46
........
675,000
725,474
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/56
........
2,800,000
2,994,308
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
685,356
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,000,000
1,198,288
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018
A,
Refunding,
5%,
12/01/48
.......................................................
9,000,000
10,078,798
Montour
School
District
,
GO,
2015
A&B,
Pre-Refunded,
AGMC
Insured,
5%,
4/01/40
..................
3,170,000
3,722,166
GO,
2015
A&B,
Pre-Refunded,
AGMC
Insured,
5%,
4/01/41
..................
2,000,000
2,348,369
GO,
2015
A&B,
Pre-Refunded,
AGMC
Insured,
5%,
4/01/42
..................
2,000,000
2,348,370
Pennsylvania
Higher
Educational
Facilities
Authority
,
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
5/01/40
.....
3,575,000
4,144,277
Drexel
University,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
4%,
5/01/41
.....
5,425,000
6,273,385
Pennsylvania
Turnpike
Commission
,
Revenue,
2009
C,
AGMC
Insured,
6.25%,
6/01/33
.........................
5,000,000
6,159,170
Revenue,
2020
B,
5%,
12/01/45
.......................................
5,000,000
6,298,239
Revenue,
2020
B,
5%,
12/01/50
.......................................
8,000,000
10,081,165
Philadelphia
Gas
Works
Co.
,
Revenue
,
Sixteenth
A
,
AGMC
Insured
,
4
%
,
8/01/45
...
4,000,000
4,615,878
School
District
of
Philadelphia
(The)
,
GO,
2016
F,
Refunding,
5%,
9/01/33
...................................
6,415,000
7,600,572
GO,
2016
F,
Refunding,
5%,
9/01/36
...................................
4,090,000
4,820,518
Sports
&
Exhibition
Authority
of
Pittsburgh
and
Allegheny
County
,
County
of
Allegheny
Hotel
Room
Excise
Tax
,
Revenue
,
2010
,
Refunding
,
AGMC
Insured
,
5
%
,
2/01/35
..
18,000,000
18,047,633
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The)
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/32
...........................
10,000,000
11,970,962
Upper
Merion
Area
School
District
,
GO
,
2021
A
,
4
%
,
1/15/46
...................
5,000,000
5,767,691
Westmoreland
County
Municipal
Authority
,
Revenue
,
2016
,
Refunding
,
BAM
Insured
,
5
%
,
8/15/42
......................................................
17,205,000
19,680,330
220,848,732
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Rhode
Island
0.1%
Rhode
Island
Health
and
Educational
Building
Corp.
,
Lifespan
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
5/15/39
.................................
$
5,500,000
$
6,199,275
Rhode
Island
Housing
and
Mortgage
Finance
Corp.
,
Revenue,
10A,
6.5%,
10/01/22
........................................
170,000
170,658
Revenue,
10A,
6.5%,
4/01/27
.........................................
130,000
130,465
Revenue,
15A,
6.85%,
10/01/24
.......................................
120,000
120,509
Rhode
Island
Student
Loan
Authority
,
Revenue,
Senior
Lien,
2021
A,
5%,
12/01/27
.............................
1,000,000
1,210,059
Revenue,
Senior
Lien,
2021
A,
5%,
12/01/29
.............................
2,025,000
2,531,105
10,362,071
South
Carolina
1.1%
City
of
Columbia
,
Waterworks
&
Sewer
System
,
Revenue
,
2019
A
,
4
%
,
2/01/44
.....
5,250,000
6,088,324
City
of
Rock
Hill
,
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/41
......................
7,690,000
8,748,839
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/47
......................
5,000,000
5,654,496
County
of
Greenwood
,
Self
Regional
Healthcare
Auxiliary,
Revenue,
2017,
Refunding,
4%,
10/01/37
.....
8,465,000
9,540,716
Self
Regional
Healthcare
Auxiliary,
Revenue,
2017,
Refunding,
4%,
10/01/39
.....
1,195,000
1,342,542
c,d
County
of
Richland
,
Village
at
Sandhill
Improvement
District
,
Special
Assessment
,
144A,
2021
,
Refunding
,
3.75
%
,
11/01/36
................................
1,270,000
1,251,369
South
Carolina
Jobs-Economic
Development
Authority
,
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/43
......
20,000,000
23,957,842
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/48
......
15,000,000
17,862,429
South
Carolina
Ports
Authority
,
Revenue,
2019
B,
5%,
7/01/44
........................................
10,000,000
12,095,720
Revenue,
2019
B,
5%,
7/01/54
........................................
10,365,000
12,448,308
South
Carolina
Public
Service
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
12/01/55
.
20,000,000
22,722,060
Spartanburg
Regional
Health
Services
District
,
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/37
........................................
1,415,000
1,655,665
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/39
........................................
1,410,000
1,642,568
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/45
........................................
2,750,000
3,160,411
128,171,289
South
Dakota
1.1%
County
of
Lincoln
,
Augustana
College
Association
(The),
Revenue,
2021
A,
Refunding,
4%,
8/01/56
..
1,125,000
1,222,220
Augustana
College
Association
(The),
Revenue,
2021
A,
Refunding,
4%,
8/01/61
..
2,550,000
2,747,965
Huron
School
District
No.
2-2
,
GO
,
2013
,
Refunding
,
5
%
,
6/15/39
...............
4,000,000
4,398,986
South
Dakota
Health
&
Educational
Facilities
Authority
,
Revenue,
2011
A,
5.125%,
8/01/46
.....................................
7,000,000
7,023,298
Revenue,
2012
A,
Refunding,
5%,
8/01/46
...............................
6,005,000
6,184,585
Revenue,
2015
A,
Refunding,
5%,
8/01/38
...............................
3,475,000
3,970,826
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.........
10,000,000
11,130,234
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/46
.........
51,050,000
60,188,022
Monument
Health
Obligated
Group,
Revenue,
2017,
4%,
9/01/37
..............
10,920,000
12,243,931
Monument
Health
Obligated
Group,
Revenue,
2017,
5%,
9/01/40
..............
10,000,000
11,832,277
South
Dakota
State
Building
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
6/01/42
...
5,450,000
6,427,052
127,369,396
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
35
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Tennessee
2.2%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-1
,
Refunding
,
4
%
,
8/01/44
................
$
2,000,000
$
2,238,044
City
of
Jackson
,
West
Tennessee
Healthcare
Obligated
Group
,
Revenue
,
2015
,
Refunding
,
4
%
,
4/01/41
.............................................
25,000,000
27,011,007
Johnson
City
Health
&
Educational
Facilities
Board
,
Mountain
States
Health
Alliance
Obligated
Group
,
Revenue
,
1998
,
NATL
Insured
,
ETM,
5.25
%
,
7/01/28
.........
8,500,000
9,054,917
Knox
County
Health
Educational
&
Housing
Facility
Board
,
Covenant
Health
Obligated
Group
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/42
.........................
35,000,000
41,204,996
Memphis-Shelby
County
Airport
Authority
,
Revenue,
2018,
5%,
7/01/43
.........................................
10,000,000
11,943,245
Revenue,
2018,
5%,
7/01/47
.........................................
11,000,000
13,065,776
Metropolitan
Government
Nashville
&
Davidson
County
Health
&
Educational
Facilities
Board
,
Blakeford
at
Green
Hills
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/45
.......
1,000,000
1,059,842
Blakeford
at
Green
Hills
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/55
.......
7,000,000
7,399,757
Trevecca
Nazarene
University,
Revenue,
2021
B,
4%,
10/01/51
...............
5,645,000
6,111,634
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Water
&
Sewer,
Revenue,
2017
A,
5%,
7/01/46
...........................
21,925,000
26,548,702
Water
&
Sewer,
Revenue,
2017
B,
5%,
7/01/42
...........................
21,645,000
26,206,452
Metropolitan
Nashville
Airport
Authority
(The)
,
Revenue
,
2019
B
,
5
%
,
7/01/44
......
20,000,000
24,319,760
b
Tennergy
Corp.
,
Revenue
,
2021
A
,
Mandatory
Put
,
4
%
,
9/01/28
.................
25,000,000
29,234,212
Tennessee
Housing
Development
Agency
,
Revenue
,
2018-4
,
Refunding
,
4
%
,
7/01/43
5,265,000
5,643,409
Tennessee
State
School
Bond
Authority
,
Revenue
,
2017
A
,
5
%
,
11/01/47
..........
15,000,000
18,098,052
249,139,805
Texas
10.2%
Abilene
Convention
Center
Hotel
Development
Corp.
,
City
of
Abilene
Abilene
Convention
Center
,
Revenue,
First
Lien
,
2021
A
,
4
%
,
10/01/50
................
5,510,000
5,978,737
Central
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien,
2015
A,
Pre-Refunded,
5%,
1/01/45
...................
5,000,000
5,808,170
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
1/01/40
.......................
12,505,000
15,087,584
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
1/01/46
.......................
11,245,000
13,567,363
Revenue,
Sub.
Lien,
2021
C,
5%,
1/01/27
...............................
15,000,000
17,471,891
Central
Texas
Turnpike
System
,
Revenue,
2015
B,
Refunding,
5%,
8/15/37
...............................
10,000,000
11,116,637
Revenue,
2015
C,
Refunding,
5%,
8/15/37
...............................
5,000,000
5,589,197
Revenue,
2015
C,
Refunding,
5%,
8/15/42
...............................
20,000,000
22,323,618
Revenue,
First
Tier,
2012
A,
Pre-Refunded,
AGMC
Insured,
5%,
8/15/41
........
16,000,000
16,610,510
Revenue,
First
Tier,
2012
A,
Pre-Refunded,
BAM
Insured,
5%,
8/15/41
..........
9,665,000
10,025,949
City
of
Arlington
,
Special
Tax,
Senior
Lien
,
2018
A
,
AGMC
Insured
,
4
%
,
2/15/44
.....
20,000,000
22,486,288
City
of
Austin
,
Electric
Utility,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
...................
10,000,000
11,451,009
Water
&
Wastewater
System,
Revenue,
2013
A,
Refunding,
5%,
11/15/38
.......
20,000,000
21,355,980
City
of
Corpus
Christi
,
Utility
System,
Revenue,
Junior
Lien,
2013,
Pre-Refunded,
5%,
7/15/38
.........
6,000,000
6,481,770
Utility
System,
Revenue,
Junior
Lien,
2013,
Pre-Refunded,
5%,
7/15/43
.........
7,000,000
7,562,065
Utility
System,
Revenue,
Junior
Lien,
2015
A,
5%,
7/15/40
...................
13,200,000
15,127,300
City
of
Dallas
,
Revenue
,
2009
,
Refunding
,
AGMC
Insured
,
5.25
%
,
8/15/34
........
18,975,000
19,094,890
City
of
Laredo
,
Waterworks
&
Sewer
System
,
Revenue
,
2016
,
Refunding
,
4
%
,
3/01/41
9,690,000
10,609,161
City
of
San
Antonio
,
Electric
&
Gas
Systems
,
Revenue,
Junior
Lien
,
2013
,
Pre-
Refunded
,
5
%
,
2/01/38
.............................................
10,000,000
10,597,634
City
of
San
Marcos
,
Electric
Utility
System
,
Revenue
,
2013
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
11/01/33
..............................................
6,300,000
6,604,337
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel,
Revenue,
First
Lien,
2021
A,
4%,
10/01/50
.....
1,640,000
1,783,919
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/32
....
90,000
115,627
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/33
....
100,000
127,984
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Conroe
Local
Government
Corp.,
(continued)
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/34
....
$
100,000
$
127,583
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/35
....
85,000
108,184
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/36
....
85,000
107,967
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/41
....
600,000
688,208
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/46
....
700,000
786,853
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/50
....
650,000
728,383
Dallas
Area
Rapid
Transit
,
Revenue,
Senior
Lien,
2016
A,
Refunding,
5%,
12/01/46
....................
10,000,000
11,580,714
Revenue,
Senior
Lien,
2016
A,
Refunding,
5%,
12/01/48
....................
12,200,000
14,112,582
Dallas
Fort
Worth
International
Airport
,
Revenue
,
2013
D
,
Refunding
,
5.25
%
,
11/01/32
10,000,000
10,954,411
Ector
County
Independent
School
District
,
GO
,
2013
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
8/15/36
......................................................
10,355,000
11,226,638
Forney
Independent
School
District
,
GO
,
2015
,
Refunding
,
PSF
Guaranty
,
5
%
,
8/15/37
15,000,000
17,248,463
Frisco
Independent
School
District
,
GO
,
2016
,
PSF
Guaranty
,
5
%
,
8/15/46
........
20,000,000
23,242,218
Goose
Creek
Consolidated
Independent
School
District
,
GO
,
2013
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
2/15/38
..............................................
6,045,000
6,412,824
Grand
Parkway
Transportation
Corp.
,
Revenue,
2013
B,
Zero
Cpn
.,
10/01/45
..................................
10,000,000
11,476,558
Revenue,
2018
A,
5%,
10/01/48
.......................................
7,720,000
9,404,560
Revenue,
First
Tier,
2020
C,
Refunding,
4%,
10/01/45
......................
15,455,000
17,751,700
Gulf
Coast
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2003
B
,
1.5
%
,
5/01/28
....
2,000,000
1,991,384
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Houston
Methodist
Hospital
Obligated
Group,
Revenue,
2015,
5%,
12/01/45
.....
30,000,000
33,853,725
Memorial
Hermann
Health
System
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/45
....................................................
15,000,000
17,314,636
Harris
County
Toll
Road
Authority
(The)
,
Revenue,
Senior
Lien
,
2018
A
,
Refunding
,
5
%
,
8/15/43
.........................................................
6,000,000
7,294,087
Harris
County-Houston
Sports
Authority
,
Revenue,
Senior
Lien,
2020
A,
Refunding,
AGMC
Insured,
3.125%,
11/15/56
.....
5,000,000
5,193,032
Revenue,
Third
Lien,
2004
A-3,
NATL
Insured,
Zero
Cpn
.,
11/15/37
............
6,300,000
2,689,544
Hidalgo
County
Regional
Mobility
Authority
,
Revenue,
Senior
Lien,
2013,
Pre-Refunded,
5.25%,
12/01/38
.................
5,000,000
5,507,792
Revenue,
Senior
Lien,
2013,
Pre-Refunded,
5%,
12/01/43
...................
5,000,000
5,481,901
Houston
Higher
Education
Finance
Corp.
,
Houston
Baptist
University
,
Revenue
,
2021
,
4
%
,
10/01/51
.....................................................
3,800,000
4,121,955
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO,
2021,
2.375%,
9/01/31
..........................................
165,000
161,343
GO,
2021,
2.375%,
9/01/32
..........................................
170,000
165,292
GO,
2021,
2.375%,
9/01/33
..........................................
170,000
164,622
GO,
2021,
2.5%,
9/01/34
............................................
180,000
174,850
GO,
2021,
2.5%,
9/01/36
............................................
370,000
355,112
GO,
2021,
2.625%,
9/01/38
..........................................
385,000
372,018
GO,
2021,
3%,
9/01/41
.............................................
375,000
368,895
GO,
2021,
3%,
9/01/46
.............................................
750,000
715,260
GO,
2021,
3%,
9/01/51
.............................................
1,265,000
1,188,274
Lamar
Consolidated
Independent
School
District
,
GO
,
2018
,
PSF
Guaranty
,
5
%
,
2/15/43
.........................................................
30,000,000
35,394,810
Lower
Colorado
River
Authority
,
LCRA
Transmission
Services
Corp.,
Revenue,
2013
A,
Refunding,
5%,
5/15/36
...
10,000,000
10,681,184
LCRA
Transmission
Services
Corp.,
Revenue,
2018,
Refunding,
5%,
5/15/43
.....
10,000,000
12,024,240
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/34
.....
1,850,000
2,349,208
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/35
.....
2,225,000
2,819,745
LCRA
Transmission
Services
Corp.,
Revenue,
2021,
Refunding,
5%,
5/15/36
.....
2,750,000
3,474,691
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
CHF-Collegiate
Housing
Corpus
Christi
II
LLC,
Revenue,
A,
Pre-Refunded,
5%,
4/01/48
........................................................
$
7,825,000
$
9,277,961
CHF-Collegiate
Housing
Island
Campus
LLC,
Revenue,
2017
A,
Pre-Refunded,
5%,
4/01/37
........................................................
2,500,000
3,048,936
NCCD-Cain
Hall
Redevelopment
I
LLC,
Revenue,
2016
A-1,
5%,
4/01/46
........
6,000,000
6,945,378
NCCD-College
Station
Properties
LLC,
Revenue,
A,
5%,
7/01/47
..............
10,000,000
8,600,000
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/39
.......................................................
5,650,000
6,250,550
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/49
.......................................................
11,470,000
12,563,932
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/54
.......................................................
230,000
253,243
Westminster
Manor,
Revenue,
2021,
4%,
11/01/49
.........................
6,650,000
7,425,875
Westminster
Manor,
Revenue,
2021,
4%,
11/01/55
.........................
6,275,000
6,973,337
North
East
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien
,
2016
A
,
5
%
,
1/01/41
.........................................................
16,750,000
18,976,686
North
Harris
County
Regional
Water
Authority
,
Revenue,
Senior
Lien,
2016,
Refunding,
4%,
12/15/41
......................
20,000,000
21,889,280
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
12/15/46
......................
18,460,000
21,625,512
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/35
.........
10,000,000
11,310,285
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/38
.........
10,000,000
11,266,735
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/43
.
47,000,000
57,010,239
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/48
.
33,500,000
40,405,328
North
Texas
Tollway
System,
Revenue,
First
Tier,
I,
Pre-Refunded,
6.5%,
1/01/43
..
25,000,000
29,718,495
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2017
B,
Refunding,
5%,
1/01/48
10,000,000
11,815,926
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2018,
Refunding,
5%,
1/01/48
25,250,000
29,980,052
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn
.,
9/01/37
....
7,500,000
4,190,760
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn
.,
9/01/43
....
7,500,000
2,673,580
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
6.75%,
9/01/45
......
25,000,000
37,528,407
Port
Freeport
,
Revenue,
Senior
Lien
,
2019
A
,
5
%
,
6/01/49
.....................
4,000,000
4,728,812
San
Antonio
Education
Facilities
Corp.
,
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/46
......
1,675,000
1,860,239
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/51
......
12,720,000
14,061,928
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/54
......
4,035,000
4,443,067
San
Antonio
Public
Facilities
Corp.
,
City
of
San
Antonio
,
Revenue
,
2012
,
Refunding
,
4
%
,
9/15/42
......................................................
36,500,000
37,395,035
San
Antonio
Water
System
,
Revenue,
Junior
Lien,
2018
A,
Refunding,
5%,
5/15/43
......................
12,000,000
14,536,459
Revenue,
Junior
Lien,
2018
A,
Refunding,
5%,
5/15/48
......................
10,000,000
12,028,063
San
Jacinto
River
Authority
,
Revenue,
2011,
AGMC
Insured,
5%,
10/01/32
............................
5,000,000
5,017,749
Revenue,
2011,
AGMC
Insured,
5%,
10/01/37
............................
3,000,000
3,011,111
Southwest
Higher
Education
Authority,
Inc.
,
Southern
Methodist
University
,
Revenue
,
2013
A
,
5
%
,
10/01/38
...............................................
24,380,000
26,448,182
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
B,
5%,
7/01/43
...........
10,000,000
12,064,629
Cook
Children's
Medical
Center
Obligated
Group,
Revenue,
2013
A,
5.25%,
12/01/39
10,000,000
10,911,358
Hendrick
Medical
Center
Obligated
Group,
Revenue,
2013,
Pre-Refunded,
5.5%,
9/01/43
........................................................
5,350,000
5,854,934
Texas
Health
Resources
Obligated
Group,
Revenue,
2015
A,
5%,
11/15/52
......
5,000,000
5,648,777
Tarrant
County
Health
Facilities
Development
Corp.
,
Texas
Health
Resources
Obligated
Group
,
Revenue
,
1994
,
FGIC
Insured
,
ETM,
6
%
,
9/01/24
....................
2,670,000
2,945,364
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue,
2021,
Refunding,
5%,
12/15/28
................................
4,500,000
5,561,307
Revenue,
2021,
Refunding,
5%,
12/15/29
................................
7,500,000
9,412,679
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III,
(continued)
Revenue,
2021,
Refunding,
5%,
12/15/30
................................
$
8,355,000
$
10,630,872
Texas
Transportation
Commission
,
Revenue,
First
Tier,
2019
A,
Zero
Cpn
.,
8/01/48
...........................
6,250,000
1,960,178
Revenue,
First
Tier,
2019
A,
Zero
Cpn
.,
8/01/49
...........................
5,000,000
1,487,577
Revenue,
First
Tier,
2019
A,
Zero
Cpn
.,
8/01/50
...........................
5,500,000
1,543,593
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
4%,
10/15/43
.......................................................
25,000,000
29,016,808
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
5%,
4/15/49
15,000,000
18,509,010
West
Travis
County
Public
Utility
Agency
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
......................................................
5,000,000
5,584,154
1,151,185,448
Utah
1.2%
Central
Utah
Water
Conservancy
District
,
Revenue,
2017
B,
Refunding,
4%,
10/01/37
..............................
2,600,000
2,987,161
Revenue,
2017
B,
Refunding,
4%,
10/01/38
..............................
10,000,000
11,471,228
City
of
Salt
Lake
City
,
Airport,
Revenue,
2017
A,
5%,
7/01/42
..................................
15,000,000
17,798,793
Airport,
Revenue,
2017
A,
5%,
7/01/47
..................................
10,000,000
11,853,029
Airport,
Revenue,
2018
A,
5%,
7/01/48
..................................
9,400,000
11,191,350
Airport,
Revenue,
2018
A,
5.25%,
7/01/48
...............................
10,000,000
12,061,265
Jordan
Valley
Water
Conservancy
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
10/01/41
6,000,000
6,831,045
University
of
Utah
(The)
,
Revenue,
2013
A,
Pre-Refunded,
5%,
8/01/43
............................
21,975,000
23,799,105
Revenue,
2018
A,
5%,
8/01/44
........................................
12,240,000
15,189,515
Utah
Infrastructure
Agency
,
Revenue,
2021,
3%,
10/15/26
........................................
550,000
600,206
Revenue,
2021,
4%,
10/15/28
........................................
350,000
407,934
Revenue,
2021,
4%,
10/15/32
........................................
540,000
631,815
Revenue,
2021,
4%,
10/15/38
........................................
500,000
573,714
Revenue,
2021,
4%,
10/15/41
........................................
1,450,000
1,651,672
Revenue,
2021,
3%,
10/15/45
........................................
2,000,000
2,028,585
Utah
Municipal
Power
Agency
,
Revenue
,
2016
B
,
5
%
,
7/01/38
..................
10,000,000
11,555,038
Weber
Basin
Water
Conservancy
District
,
Revenue
,
2013
B
,
Pre-Refunded
,
5
%
,
4/01/39
.........................................................
7,180,000
7,665,079
138,296,534
Vermont
0.1%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
President
&
Fellows
of
Middlebury
College,
Revenue,
2020,
Refunding,
5%,
11/01/49
4,000,000
4,972,787
University
of
Vermont
Health
Network
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
12/01/36
...........................................
5,000,000
5,861,165
10,833,952
Virginia
1.0%
Amelia
County
Industrial
Development
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2002
,
Refunding
,
1.45
%
,
4/01/27
......................................
2,350,000
2,364,675
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien,
2018
A,
5%,
7/01/42
..............................
25,000,000
29,975,925
Revenue,
Senior
Lien,
2020
A,
5.25%,
7/01/60
............................
25,000,000
31,519,668
Virginia
Commonwealth
Transportation
Board
,
Revenue
,
2019
,
4
%
,
5/15/41
.......
13,585,000
15,744,156
Virginia
Resources
Authority
,
Revenue
,
2012
A
,
5
%
,
11/01/39
..................
70,000
73,114
Virginia
Small
Business
Financing
Authority
,
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2012,
5%,
1/01/40
.............
14,535,000
14,640,133
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
39
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Virginia
(continued)
Virginia
Small
Business
Financing
Authority,
(continued)
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2019,
5%,
1/01/44
.............
$
7,500,000
$
7,552,861
95
Express
Lanes
LLC,
Revenue,
Senior
Lien,
2019,
5%,
7/01/49
.............
3,000,000
3,020,642
National
Senior
Campuses,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/45
........................................................
4,000,000
4,522,718
109,413,892
Washington
2.9%
Align
Capital
Trust
,
Revenue
,
2020-4A
,
3.75
%
,
7/01/43
.......................
10,807,500
10,712,262
City
of
Seattle
,
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/36
............
22,170,000
25,407,552
Municipal
Light
&
Power,
Revenue,
2018
A,
4%,
1/01/42
.....................
10,855,000
12,326,143
County
of
King
,
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
7/01/49
................
12,000,000
14,221,613
NJB
Properties
,
Revenue
,
2006
A
,
5
%
,
12/01/36
............................
5,000
5,018
North
Thurston
Public
Schools
,
GO,
2020,
4%,
12/01/34
.............................................
5,000,000
6,009,871
GO,
2020,
4%,
12/01/35
.............................................
5,000,000
6,001,205
GO,
2020,
4%,
12/01/36
.............................................
6,000,000
7,158,649
Port
of
Seattle
,
Revenue,
2018
A,
5%,
5/01/43
........................................
15,500,000
18,038,224
Revenue,
2019,
4%,
4/01/44
.........................................
4,000,000
4,480,499
Revenue,
2021
C,
Refunding,
5%,
8/01/38
...............................
17,265,000
22,007,967
State
of
Washington
,
GO,
2019
D,
5%,
6/01/43
............................................
11,040,000
13,623,797
GO,
2019
D,
5%,
6/01/44
............................................
11,595,000
14,282,712
University
of
Washington
,
Revenue
,
2018
,
5
%
,
4/01/48
.......................
29,450,000
35,166,657
Washington
Health
Care
Facilities
Authority
,
Fred
Hutchinson
Cancer
Research
Center,
Revenue,
2017
A,
5%,
1/01/47
.......
10,000,000
11,658,117
Multicare
Health
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
4%,
8/15/41
25,000,000
28,190,470
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2012
A,
5%,
10/01/42
..
10,175,000
10,608,498
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2014
D,
Refunding,
5%,
10/01/41
.......................................................
9,850,000
11,026,321
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2014
D,
Pre-Refunded,
5%,
10/01/41
...................................................
150,000
169,072
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/45
........................................................
2,610,000
2,981,398
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/45
........................................................
2,105,000
2,629,927
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/50
........................................................
3,000,000
3,730,265
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/29
250,000
319,426
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/30
265,000
343,923
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/33
250,000
321,655
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
3%,
12/01/34
300,000
327,029
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/40
870,000
1,017,222
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/45
1,200,000
1,375,137
c
Seattle
Cancer
Care
Alliance
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/48
910,000
1,031,529
Seattle
Children's
Hospital
Obligated
Group,
Revenue,
2015
B,
Refunding,
5%,
10/01/38
.......................................................
15,000,000
16,918,004
Washington
Higher
Education
Facilities
Authority
,
Seattle
Pacific
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/42
......................................
3,800,000
4,663,467
Washington
State
Convention
Center
Public
Facilities
District
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
7/01/43
.............................................
14,855,000
16,958,407
Washington
State
Housing
Finance
Commission
,
Revenue
,
2021-1
,
A
,
3.5
%
,
12/20/35
21,871,905
25,104,996
328,817,032
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
West
Virginia
0.9%
Berkeley
County
Public
Service
Sewer
District
,
Revenue
,
2016
B
,
Refunding
,
BAM
Insured
,
5
%
,
6/01/36
...............................................
$
1,000,000
$
1,169,794
West
Virginia
Hospital
Finance
Authority
,
Cabell
Huntington
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
........................................................
13,250,000
15,887,459
Charleston
Area
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/38
....................................................
3,040,000
3,690,780
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/42
7,000,000
8,242,659
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/47
10,190,000
11,986,163
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/52
20,700,000
24,634,795
West
Virginia
University
,
Revenue
,
2014
A
,
Pre-Refunded
,
5
%
,
10/01/44
..........
21,800,000
24,741,491
West
Virginia
Water
Development
Authority
,
Revenue,
2016
A,
Refunding,
5%,
10/01/36
..............................
5,000,000
5,960,462
Revenue,
2016
A,
Refunding,
5%,
10/01/45
..............................
5,435,000
6,384,778
102,698,381
Wisconsin
1.9%
Public
Finance
Authority
,
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4.25%,
12/01/50
...................
3,750,000
3,789,731
b,c
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-2,
Mandatory
Put,
4%,
12/01/35
.......................................................
29,600,000
29,667,603
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
11/15/41
.......................................................
1,205,000
1,453,182
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
........................................................
5,075,000
5,777,861
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/51
........................................................
5,705,000
6,440,796
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/56
........................................................
2,250,000
2,534,280
Blue
Ridge
Healthcare
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/01/50
2,185,000
2,271,530
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/41
..........
1,000,000
1,100,304
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/61
..........
7,000,000
7,499,734
RED
River
Valley
Alliance
LLC,
Revenue,
2021,
4%,
9/30/51
.................
21,750,000
23,640,675
Renown
Regional
Medical
Center,
Revenue,
2020
A,
Refunding,
4%,
6/01/45
.....
14,000,000
16,070,727
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/37
............................................
4,395,000
5,093,444
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/39
............................................
4,755,000
5,467,388
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/41
............................................
5,145,000
5,883,329
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/46
............................................
6,980,000
7,880,141
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/51
............................................
7,000,000
7,879,233
Wisconsin
Center
District
,
Revenue,
Junior
Lien
,
2020
D
,
AGMC
Insured
,
Zero
Cpn
.,
12/15/45
........................................................
40,000,000
17,454,592
Wisconsin
Health
&
Educational
Facilities
Authority
,
Ascension
Health
Credit
Group,
Revenue,
2013
B-2,
4%,
11/15/43
.............
10,000,000
11,581,628
Children's
Hospital
of
Wisconsin
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
15,000,000
16,993,860
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2017
C,
Refunding,
5%,
2/15/47
........................................................
20,000,000
23,380,304
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/36
........................................................
530,000
583,493
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/41
........................................................
510,000
557,065
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
41
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Wisconsin
Health
&
Educational
Facilities
Authority,
(continued)
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/45
........................................................
$
475,000
$
515,576
d
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/36
........................................................
775,000
815,100
d
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/41
........................................................
770,000
801,027
d
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/45
........................................................
650,000
671,131
Thedacare
,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
12/15/37
......
5,135,000
6,010,153
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/46
......
895,000
1,016,702
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/51
......
1,335,000
1,510,320
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/55
......
1,760,000
1,976,490
216,317,399
Wyoming
0.1%
Wyoming
Municipal
Power
Agency,
Inc.
,
Revenue
,
2017
A
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
1/01/42
...............................................
7,000,000
8,500,685
U.S.
Territories
3.3%
District
of
Columbia
2.6%
District
of
Columbia
,
GO,
2019
A,
5%,
10/15/44
...........................................
25,000,000
31,042,990
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/24
.....................
12,120,000
12,162,279
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/25
.....................
7,000,000
7,023,397
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/26
.....................
9,950,000
9,982,493
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/42
..........
20,660,000
24,319,551
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/47
..........
24,985,000
29,225,032
Catholic
University
of
America
(The),
Revenue,
2018,
Refunding,
5%,
10/01/43
...
4,000,000
4,793,181
Children's
National
Medical
Center
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/15/40
........................................................
6,830,000
7,923,920
Gallaudet
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/46
...............
2,150,000
2,685,482
Gallaudet
University,
Revenue,
2021
A,
Refunding,
5%,
4/01/51
...............
2,500,000
3,115,864
Income
Tax,
Revenue,
2019
A,
4%,
3/01/44
..............................
10,000,000
11,589,876
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/49
............
2,275,000
2,679,679
Tobacco
Settlement
Financing
Corp.,
Revenue,
2001,
6.5%,
5/15/33
...........
10,705,000
11,730,337
Water
&
Sewer
Authority,
Revenue,
Senior
Lien,
2018
A,
5%,
10/01/49
..........
25,000,000
30,296,255
Water
&
Sewer
Authority,
Revenue,
Sub.
Lien,
2019
A,
5%,
10/01/44
...........
7,350,000
9,242,400
Metropolitan
Washington
Airports
Authority
,
Aviation,
Revenue,
2019
A,
Refunding,
5%,
10/01/44
.......................
17,500,000
21,278,022
Aviation,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
.......................
15,000,000
18,094,802
Dulles
Toll
Road,
Revenue,
Second
Lien,
2009
C,
AGMC
Insured,
6.5%,
10/01/41
.
25,000,000
31,473,445
Dulles
Toll
Road,
Revenue,
Sub.
Lien,
2019
B,
Refunding,
4%,
10/01/49
........
13,555,000
15,150,383
Washington
Metropolitan
Area
Transit
Authority
,
Revenue
,
2020
A
,
5
%
,
7/15/45
.....
10,000,000
12,524,231
296,333,619
Puerto
Rico
0.7%
Commonwealth
of
Puerto
Rico
,
GO
,
AGMC
Insured
,
5.5
%
,
7/01/29
..............
5,885,000
6,468,090
Puerto
Rico
Electric
Power
Authority
,
f
Revenue,
2012
A
RSA-1
2012
A,
5%,
7/01/42
.............................
18,925,000
18,546,500
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
2,480,000
2,690,730
f
Revenue,
XX-RSA-1,
5.25%,
7/01/40
...................................
15,000,000
14,756,250
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
1,000,000
1,079,785
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
...................
11,980,000
12,936,981
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/28
....................
2,500,000
2,798,709
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
2,500,000
2,717,604
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Highway
&
Transportation
Authority,
(continued)
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
$
12,135,000
$
13,235,609
75,230,258
Total
U.S.
Territories
....................................................................
371,563,877
Total
Municipal
Bonds
(Cost
$10,061,851,302)
..................................
10,981,427,659
Total
Long
Term
Investments
(Cost
$10,064,107,035)
............................
10,983,658,699
a
a
a
a
a
Short
Term
Investments
2.7%
Municipal
Bonds
2.7%
Arizona
0.0%
†
g
Arizona
Industrial
Development
Authority
,
Phoenix
Children's
Hospital
,
Revenue
,
2019
A
,
Refunding
,
LOC
JPMorgan
Chase
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
2/01/48
3,100,000
3,100,000
Missouri
0.0%
†
g
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
Washington
University
(The)
,
Revenue
,
2003
B
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
2/15/33
..
4,800,000
4,800,000
New
York
1.1%
g
Metropolitan
Transportation
Authority
,
Dedicated
Tax
Fund
,
Revenue
,
2008
A-1
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
11/01/31
...........
13,275,000
13,275,000
g
Nassau
County
Industrial
Development
Agency
,
Cold
Spring
Harbor
Laboratory
,
Revenue
,
1999
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
1/01/34
28,870,000
28,870,000
g
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2003
A-4,
Refunding,
SPA
TD
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
11/01/29
..........................................
37,205,000
37,205,000
Future
Tax
Secured,
Revenue,
2019
B-4,
SPA
JPMorgan
Chase
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
8/01/42
......................................
50,410,000
50,410,000
129,760,000
Ohio
0.1%
g
State
of
Ohio
,
University
Hospitals
Health
System,
Inc.
Obligated
Group
,
Revenue
,
2021
D
,
Refunding
,
LOC
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.05
%
,
1/15/51
.....
7,000,000
7,000,000
Oregon
0.2%
g
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group,
Revenue,
2018
A,
Refunding,
LOC
US
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
8/01/34
.................................
14,400,000
14,400,000
PeaceHealth
Obligated
Group,
Revenue,
2018
B,
Refunding,
LOC
TD
Bank
NA,
Daily
VRDN
and
Put,
0.03%,
8/01/34
.................................
3,600,000
3,600,000
18,000,000
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
43
s
See
Abbreviations
on
page
55
.
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
Tennessee
1.3%
g
Public
Building
Authority
of
Blount
County
Tennessee
(The)
,
County
of
Blount
,
Revenue
,
D-3-A
,
SPA
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
6/01/34
..
$
19,000,000
$
19,000,000
g
Public
Building
Authority
of
Sevier
County
(The)
,
County
of
Knox
,
Revenue
,
V1-K-1
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
6/01/34
.....................
35,840,000
35,840,000
g
Shelby
County
Health
Educational
&
Housing
Facilities
Board
,
Methodist
Le
Bonheur
Healthcare
Obligated
Group
,
Revenue
,
2008
A
,
AGMC
Insured
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
0.03
%
,
6/01/42
...................................
86,535,000
86,535,000
141,375,000
Total
Municipal
Bonds
(Cost
$304,035,000)
.....................................
304,035,000
Total
Short
Term
Investments
(Cost
$304,035,000
)
...............................
304,035,000
a
Total
Investments
(Cost
$10,368,142,035)
99.8%
................................
$11,287,693,699
Other
Assets,
less
Liabilities
0.2%
.............................................
27,737,056
Net
Assets
100.0%
...........................................................
$11,315,430,755
†
Rounds
to
less
than
0.1%
of
net
assets.  
a
See
Note
3(h)
regarding
investments
in
affiliated
management
investment
companies.  
b
The
maturity
date
shown
represents
the
mandatory
put
date.  
c
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
October
31,
2021,
the
aggregate
value
of
these
securities
was
$270,570,427,
representing
2.4%
of
net
assets.  
d
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).  
e
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).  
f
See
Note
7
regarding
defaulted
securities.  
g
Variable
rate
demand
notes
(VRDNs)
are
obligations
which
contain
a
floating
or
variable
interest
rate
adjustment
formula
and
an
unconditional
right
of
demand
to
receive
payment
of
the
principal
balance
plus
accrued
interest
at
specified
dates.
Unless
otherwise
noted,
the
coupon
rate
is
determined
based
on
factors
including
supply
and
demand,
underlying
credit,
tax
treatment,
and
current
short
term
rates.
The
coupon
rate
shown
represents
the
rate
at
period
end.  
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
October
31,
2021
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
Franklin
Federal
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$10,365,886,302
Cost
-
Non-controlled
affiliates
(
Note
3h
)
........................................................
2,255,733
Value
-
Unaffiliated
issuers
..................................................................
$11,285,462,659
Value
-
Non-controlled
affiliates
(
Note
3h
)
.......................................................
2,231,040
Cash
....................................................................................
31,689,949
Receivables:
Investment
securities
sold
...................................................................
16,838,553
Capital
shares
sold
........................................................................
33,097,307
Dividends
and
interest
.....................................................................
123,667,748
Total
assets
..........................................................................
11,492,987,256
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
126,649,437
Capital
shares
redeemed
...................................................................
19,289,721
Management
fees
.........................................................................
4,224,625
Distribution
fees
..........................................................................
1,230,282
Transfer
agent
fees
........................................................................
1,115,440
Trustees'
fees
and
expenses
.................................................................
21,211
Distributions
to
shareholders
.................................................................
24,418,952
Accrued
expenses
and
other
liabilities
...........................................................
606,833
Total
liabilities
.........................................................................
177,556,501
Net
assets,
at
value
.................................................................
$11,315,430,755
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$10,784,749,424
Total
distributable
earnings
(losses)
.............................................................
530,681,331
Net
assets,
at
value
.................................................................
$11,315,430,755
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
October
31,
2021
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
Franklin
Federal
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$2,047,459,854
Shares
outstanding
........................................................................
167,887,716
Net
asset
value
per
share
a
..................................................................
$12.20
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$12.68
Class
A1:
Net
assets,
at
value
.......................................................................
$6,701,183,099
Shares
outstanding
........................................................................
549,462,063
Net
asset
value
per
share
a
..................................................................
$12.20
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$12.68
Class
C:
Net
assets,
at
value
.......................................................................
$410,416,994
Shares
outstanding
........................................................................
33,678,727
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$12.19
Class
R6:
Net
assets,
at
value
.......................................................................
$343,297,812
Shares
outstanding
........................................................................
28,128,528
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$12.20
Advisor
Class:
Net
assets,
at
value
.......................................................................
$1,813,072,996
Shares
outstanding
........................................................................
148,510,120
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$12.21
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
October
31,
2021
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Franklin
Federal
Tax-
Free
Income
Fund
Investment
income:
Dividends:
Non-controlled
affiliates
(
Note
3h
)
.............................................................
$19,818
Interest:
Unaffiliated
issuers
........................................................................
189,977,321
Total
investment
income
...................................................................
189,997,139
Expenses:
Management
fees
(Note
3
a
)
...................................................................
25,561,142
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
2,414,123
    Class
A1
...............................................................................
3,464,590
    Class
C
................................................................................
1,599,552
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
650,900
    Class
A1
...............................................................................
2,341,004
    Class
C
................................................................................
166,825
    Class
R6
...............................................................................
43,503
    Advisor
Class
............................................................................
627,725
Custodian
fees
(Note
4
)
......................................................................
39,673
Reports
to
shareholders
fees
..................................................................
125,890
Registration
and
filing
fees
....................................................................
217,021
Professional
fees
...........................................................................
82,779
Trustees'
fees
and
expenses
..................................................................
70,822
Other
....................................................................................
326,058
Total
expenses
.........................................................................
37,731,607
Expense
reductions
(Note
4
)
...............................................................
(2,450)
Expenses
waived/paid
by
affiliates
(
Note
3h
and
3
f
)
..............................................
(2,744)
Net
expenses
.........................................................................
37,726,413
Net
investment
income
................................................................
152,270,726
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
25,502,499
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(134,358,528)
Non-controlled
affiliates
(
Note
3h)
...........................................................
(20,335)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(134,378,863)
Net
realized
and
unrealized
gain
(loss)
............................................................
(108,876,364)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$43,394,362
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
Franklin
Federal
Tax-Free
Income
Fund
Six
Months
Ended
October
31,
2021
(unaudited)
Year
Ended
April
30,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$152,270,725
$314,367,187
Net
realized
gain
(loss)
.................................................
25,502,499
23,829,095
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(134,378,863)
600,061,227
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
43,394,361
938,257,509
Distributions
to
shareholders:
Class
A
.............................................................
(23,385,448)
(39,853,805)
Class
A1
............................................................
(89,226,420)
(198,996,376)
Class
C
.............................................................
(4,994,043)
(13,507,112)
Class
R6
............................................................
(4,360,066)
(7,150,728)
Advisor
Class
........................................................
(24,832,119)
(49,295,844)
Total
distributions
to
shareholders
..........................................
(146,798,096)
(308,803,865)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
296,813,293
585,252,083
Class
A1
............................................................
(157,862,282)
(324,812,303)
Class
C
.............................................................
(130,027,266)
(151,868,730)
Class
R6
............................................................
51,861,973
85,157,247
Advisor
Class
........................................................
305,421
271,676,537
Total
capital
share
transactions
............................................
61,091,139
465,404,834
Net
increase
(decrease)
in
net
assets
...................................
(42,312,596)
1,094,858,478
Net
assets:
Beginning
of
period
.....................................................
11,357,743,351
10,262,884,873
End
of
period
..........................................................
$11,315,430,755
$11,357,743,351
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
48
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Federal
Tax-Free
Income
Fund (Fund)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Fund
offers
five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees. 
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Fund's
Board
of
Trustees
(the
Board),
the Fund's
administrator
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
exchange
traded
funds
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the
over-the-counter
(OTC)
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
or
Delayed
Delivery
Basis
The
Fund
purchases
securities
on
a
when-issued
basis
or
delayed
delivery,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
it
may
sell
the
securities
before
the
settlement
date.
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
49
franklintempleton.com
Semiannual
Report
c.
Income
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2021,
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. 
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 realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
e.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Fund
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
f.
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.
g.
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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
50
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
October
31,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
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
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
Six
Months
Ended
October
31,
2021
Year
Ended
April
30,
2021
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
33,889,261
$419,318,556
63,479,889
$770,686,020
Shares
issued
in
reinvestment
of
distributions
..........
1,757,579
21,682,929
3,045,305
37,041,836
Shares
redeemed
...............................
(11,671,067)
(144,188,192)
(18,310,177)
(222,475,773)
Net
increase
(decrease)
..........................
23,975,773
$296,813,293
48,215,017
$585,252,083
Class
A1
Shares:
Shares
sold
...................................
7,817,474
$96,739,735
18,955,906
$230,148,692
Shares
issued
in
reinvestment
of
distributions
..........
6,374,705
78,681,909
14,554,420
176,881,997
Shares
redeemed
...............................
(26,966,753)
(333,283,926)
(60,238,549)
(731,842,992)
Net
increase
(decrease)
..........................
(12,774,574)
$(157,862,282)
(26,728,223)
$(324,812,303)
Class
C
Shares:
Shares
sold
...................................
2,280,755
$28,184,991
7,260,239
$88,151,626
Shares
issued
in
reinvestment
of
distributions
..........
379,599
4,685,199
1,037,395
12,592,790
Shares
redeemed
a
..............................
(13,152,236)
(162,897,456)
(20,829,055)
(252,613,146)
Net
increase
(decrease)
..........................
(10,491,882)
$(130,027,266)
(12,531,421)
$(151,868,730)
Class
R6
Shares:
Shares
sold
...................................
5,662,399
$69,972,254
9,720,742
$118,377,493
Shares
issued
in
reinvestment
of
distributions
..........
334,928
4,135,644
554,389
6,748,196
Shares
redeemed
...............................
(1,799,954)
(22,245,925)
(3,292,584)
(39,968,442)
Net
increase
(decrease)
..........................
4,197,373
$51,861,973
6,982,547
$85,157,247
Advisor
Class
Shares:
Shares
sold
...................................
14,304,063
$177,142,338
46,755,602
$568,572,485
Shares
issued
in
reinvestment
of
distributions
..........
1,777,853
21,966,717
3,587,947
43,668,967
Shares
redeemed
...............................
(16,082,052)
(198,803,634)
(28,020,923)
(340,564,915)
Net
increase
(decrease)
..........................
(136)
$305,421
22,322,626
$271,676,537
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
(formerly
Franklin
Templeton
Distributors,
Inc.)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
51
franklintempleton.com
Semiannual
Report
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2021,
annualized
gross
effective
investment
management
fee
rate
was
0.443%
of
the
Fund’s
average
daily
net
assets. 
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund’s
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class
A
and
A1
reimbursement
distribution
plan,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class
C
compensation
distribution
plan,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31. 
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.10%
Class
C
....................................................................................
0.65%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$114,935
CDSC
retained
..............................................................................
$129,498
3.
Transactions
with
Affiliates
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
52
franklintempleton.com
Semiannual
Report
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
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.
During
the
period
ended
October
31,
2021,
the
Fund
paid
transfer
agent
fees
of
$3,829,957,
of
which $1,595,230
was
retained
by
Investor
Services.
f.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
each
class
until
August
31,
2022.
g.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
period
ended
October
31,
2021,
these
purchase
and
sale
transactions
aggregated
$247,843,084
and
$178,868,553
respectively.
h.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2021,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
4.
Expense
Offset
Arrangement
The Fund 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
Fund's
custodian
expenses.
During
the
period
ended
October
31,
2021,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. 
    aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a      
a  
a  
a  
a  
a  
a  
a  
Franklin
Federal
Tax-Free
Income
Fund
Non-Controlled
Affiliates
Dividends
Franklin
Liberty
Federal
Tax-Free
Bond
ETF
...............
$2,251,375
$—
$—
$—
$(20,335)
$2,231,040
83,000
$19,818
Total
Affiliated
Securities
...
$2,251,375
$—
$—
$—
$(20,335)
$2,231,040
$19,818
3.
Transactions
with
Affiliates
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
53
franklintempleton.com
Semiannual
Report
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
April
30,
2021,
the
capital
loss
carryforwards
were
as
follows:
At
October
31,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
bond
discounts
and
premiums.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
October
31,
2021,
aggregated
$810,767,487
and
$1,018,511,241,
respectively.
7.
Defaulted
Securities
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
October
31,
2021,
the
aggregate
value
of
these
securities
was
$33,302,750,
representing
0.3%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statement
of
Investments.
8.
Concentration
of
Risk
Investing
in
Puerto
Rico
securities
may
expose
the Fund
to
heightened
risks
due
to
recent
adverse
economic
and
market
changes,
credit
downgrades
and
ongoing
restructuring
discussions.
Investments
in
these
securities
are
sensitive
to
interest
rate
changes
and
credit
risk
of
the
issuer
and
may
subject
the Fund
to
increased
market
volatility.
The
market
for
these
investments
may
be
limited,
which
may
make
them
difficult
to
buy
or
sell.
9.
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.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$219,329,148
Long
term
................................................................................
207,883,652
Total
capital
loss
carryforwards
...............................................................
$427,212,800
Cost
of
investments
..........................................................................
$10,364,774,992
Unrealized
appreciation
........................................................................
$942,321,878
Unrealized
depreciation
........................................................................
(19,403,171)
Net
unrealized
appreciation
(depreciation)
..........................................................
$922,918,707
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
54
franklintempleton.com
Semiannual
Report
10.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
4,
2022.
This
Global
Credit
Facility
provides
a
source
of
funds
to
the
Borrowers
for
temporary
and
emergency
purposes,
including
the
ability
to
meet
future
unanticipated
or
unusually
large
redemption
requests.
Under
the
terms
of
the
Global
Credit
Facility,
the
Fund
shall,
in
addition
to
interest
charged
on
any
borrowings
made
by
the
Fund
and
other
costs
incurred
by
the Fund,
pay
its
share
of
fees
and
expenses
incurred
in
connection
with
the
implementation
and
maintenance
of
the
Global
Credit
Facility,
based
upon
its
relative
share
of
the
aggregate
net
assets
of
all
of
the
Borrowers,
including
an
annual
commitment
fee
of
0.15%
based
upon
the
unused
portion
of
the
Global
Credit
Facility.
These
fees
are
reflected
in
other
expenses
in
the
Statement
of
Operations.
During
the
period
ended
October
31,
2021,
the Fund
did
not
use
the
Global
Credit
Facility.
11.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
October
31,
2021,
in
valuing
the
Fund's assets
carried
at
fair
value,
is
as
follows:
12.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2022.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
Level
1
Level
2
Level
3
Total
Franklin
Federal
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
$
2,231,040
$
—
$
—
$
2,231,040
Municipal
Bonds
.........................
—
10,981,427,659
—
10,981,427,659
Short
Term
Investments
...................
—
304,035,000
—
304,035,000
Total
Investments
in
Securities
...........
$2,231,040
$11,285,462,659
$—
$11,287,693,699
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
55
franklintempleton.com
Semiannual
Report
13.
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,
except
for
the
following:
On
November
19,
2021,
the
Fund,
pursuant
to
a
plan
of
reorganization
approved
on
July
14,
2021
by
shareholders
of
Franklin
Florida
Tax-Free
Income
Fund
and
Franklin
Kentucky
Tax-Free
Income
Fund,
series
of
Franklin
Tax-Free
Trust,
and
Franklin
Tennessee
Municipal
Bond
Fund,
a
series
of
Franklin
Municipal
Securities
Trust,
(together,
the
"Acquired
Funds")
acquired
100%
of
the
Acquired
Funds'
net
assets,
primarily
made
up
of
investment
securities,
which
included
the
following
unrealized
appreciation,
through
a
tax-free
exchange
of
net
assets
and
shares
as
follows.
Immediately
after
the
completion
of
the
reorganization,
the
combined
net
assets
of
the
Fund
were
$12,238,737,442.
The
primary
purpose
for
the
reorganization
was
to
combine
the
Acquired
Funds
with
a
larger
fund
that
had
a
more
diversified
portfolio
and
a
greater
number
of
holdings,
generally
comparable
credit
quality
and
duration,
better
historical
performance,
similar
investment
goals
and
principal
investment
strategies
risk,
and
would
result
in
lower
annual
fund
operating
expenses
(on
a
pro
forma
combined
basis).
The
estimated
cost
of
the
reorganization
was
$390,981,
of
which
the
Fund
paid
25%,
the
Acquired
Funds
paid
25%
and
Advisers
paid
50%.
Abbreviations
Fund
Name
Net
Assets
Shares
Issued
by
Fund
Unrealized
Appreciation
Franklin
Florida
Tax-Free
Income
Fund
$
516,226,963
42,071,370
$
31,552,225
Franklin
Kentucky
Tax-Free
Income
Fund
135,328,009
11,028,368
7,750,035
Franklin
Tennessee
Municipal
Bond
Fund
184,713,484
15,052,331
10,376,129
Total
$
836,268,456
68,152,069
$
49,678,389
Selected
Portfolio
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
BHAC
Berkshire
Hathaway
Assurance
Corp.
COP
Certificate
of
Participation
ETF
Exchange-Traded
Fund
ETM
Escrowed
to
Maturity
FGIC
Financial
Guaranty
Insurance
Co.
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
PSF
Permanent
School
Fund
SPA
Standby
Purchase
Agreement
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
56
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program-
Funds
no
HLIM
Each
Fund
has
adopted
and
implemented
a
written
Liquidity
Risk
Management
Program
(the
“LRMP”)
as
required
by
Rule
22e-4
under
the
Investment
Company
Act
of
1940
(the
“Liquidity
Rule”).
The
LRMP
is
designed
to
assess
and
manage
each
Fund’s
liquidity
risk,
which
is
defined
as
the
risk
that
the
Fund
could
not
meet
requests
to
redeem
shares
issued
by
the
Fund
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
In
accordance
with
the
Liquidity
Rule,
the
LRMP
includes
policies
and
procedures
that
provide
for:
(1)
assessment,
management,
and
review
(no
less
frequently
than
annually)
of
each
Fund’s
liquidity
risk;
(2)
classification
of
each
Fund’s
portfolio
holdings
into
one
of
four
liquidity
categories
(Highly
Liquid,
Moderately
Liquid,
Less
Liquid,
and
Illiquid);
(3)
for
Funds
that
do
not
primarily
hold
assets
that
are
Highly
Liquid,
establishing
and
maintaining
a
minimum
percentage
of
the
Fund’s
net
assets
in
Highly
Liquid
investments
(called
a
“Highly
Liquid
Investment
Minimum”
or
“HLIM”);
and
(4)
prohibiting
the
Fund’s
acquisition
of
Illiquid
investments
that
would
result
in
the
Fund
holding
more
than
15%
of
its
net
assets
in
Illiquid
assets.
The
LRMP
also
requires
reporting
to
the
Securities
and
Exchange
Commission
(“SEC”)
(on
a
non-public
basis)
and
to
the
Board
if
the
Fund’s
holdings
of
Illiquid
assets
exceed
15%
of
the
Fund’s
net
assets.
Funds
with
HLIMs
must
have
procedures
for
addressing
HLIM
shortfalls,
including
reporting
to
the
Board
and,
with
respect
to
HLIM
shortfalls
lasting
more
than
seven
consecutive
calendar
days,
reporting
to
the
SEC
(on
a
non-public
basis).
The
Director
of
Liquidity
Risk
within
the
Investment
Risk
Management
Group
(the
“IRMG”)
is
the
appointed
Administrator
of
the
LRMP.
The
IRMG
maintains
the
Investment
Liquidity
Committee
(the
“ILC”)
to
provide
oversight
and
administration
of
policies
and
procedures
governing
liquidity
risk
management
for
FT
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Investment
Compliance,
Investment
Operations,
Valuation
Committee,
Product
Management
and
Global
Product
Strategy.
In
assessing
and
managing
each
Fund’s
liquidity
risk,
the
ILC
considers,
as
relevant,
a
variety
of
factors,
including
the
Fund’s
investment
strategy
and
the
liquidity
of
its
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions;
its
short
and
long-term
cash
flow
projections;
and
its
cash
holdings
and
access
to
other
funding
sources
including
the
Funds’
interfund
lending
facility
and
line
of
credit.
Classification
of
the
Fund’s
portfolio
holdings
in
the
four
liquidity
categories
is
based
on
the
number
of
days
it
is
reasonably
expected
to
take
to
convert
the
investment
to
cash
(for
Highly
Liquid
and
Moderately
Liquid
holdings)
or
sell
or
dispose
of
the
investment
(for
Less
Liquid
and
Illiquid
investments),
in
current
market
conditions
without
significantly
changing
the
investment’s
market
value.
Each
Fund
primarily
holds
liquid
assets
that
are
defined
under
the
Liquidity
Rule
as
"Highly
Liquid
Investments,"
and
therefore
is
not
required
to
establish
an
HLIM.
Highly
Liquid
Investments
are
defined
as
cash
and
any
investment
reasonably
expected
to
be
convertible
to
cash
in
current
market
conditions
in
three
business
days
or
less
without
the
conversion
to
cash
significantly
changing
the
market
value
of
the
investment.
At
meetings
of
the
Funds’
Board
of
Trustees
held
in
May
2021,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2020.
The
Program
Administrator
report
concluded
that
(i.)
the
LRMP,
as
adopted
and
implemented,
remains
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk;
(ii.)
the
LRMP,
including
the
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
was
implemented
and
operated
effectively
to
achieve
the
goal
of
assessing
and
managing
each
Fund’s
liquidity
risk;
and
(iii.)
each
Fund
was
able
to
meet
requests
for
redemption
without
significant
dilution
of
remaining
investors’
interests
in
the
Fund.
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.
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
57
franklintempleton.com
Semiannual
Report
Quarterly
Statement
of
Investments
The
Fund
files
a
complete
statement
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.
1116
S
12/21
©
2021
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
Federal
Tax-Free
Income
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
 
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
(c) N/A
 
(d) N/A
 
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
 
 
Item 3. Audit Committee Financial Expert.
 
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
 
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
 
Item 4.
Principal Accountant Fees and Services.
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
 
 
(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 Jeffrey W. White, Interim Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Jeffrey W. White, Interim Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
 
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
FRANKLIN FEDERAL TAX-FREE INCOME FUND
 
 
By S\MATTHEW T. HINKLE______________________
      Matthew T. Hinkle
      Chief Executive Officer – Finance and Administration
Date December 23, 2021
 
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 December 23, 2021
 
 
 
By S\Jeffrey W. White________________________
     Jeffrey W. White
     Interim Chief Financial Officer, Chief Accounting Officer and Treasurer
Date December 23, 2021