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)
 
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)
 
Registrant's telephone number, including area code: 650 312-2000
 
Date of fiscal year end: 4/30
 
Date of reporting period: 10/31/22
 
 
Item 1. Reports to Stockholders.
 
a.)
 
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)


b.)
 
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
 
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
Federal
Tax-Free
Income
Fund
October
31,
2022
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
SHAREHOLDER
LETTER
Dear
Shareholder:
During
the
six
months
ended
October
31,
2022,
the
U.S.
economy
showed
mixed
results
as
it
continued
to
recover
from
the
COVID-19
pandemic
amid
declining
unemployment
and
rising
wages
and
personal
consumption.
U.S.
gross
domestic
product
(GDP)
contracted
in
2022’s
second
quarter
due
to
declines
in
inventory
and
business
investment
but
grew
in
the
third
quarter
as
the
trade
deficit
narrowed
and
consumer
spending
continued
to
expand.
Inflation
increased
during
the
six-month
period,
influenced
by
pandemic-related
supply-chain
issues,
higher
energy
prices,
Russia’s
invasion
of
Ukraine
and
broader
price
pressures.
To
combat
high
inflation,
the
U.S.
Federal
Reserve
raised
the
federal
funds
rate
by
0.50%
in
May,
and
0.75%
in
each
of
June,
July
and
September,
for
a
total
of
2.75%,
increasing
the
rate
from
0.50%
to
3.25%
during
the
period.
The
Federal
Reserve
also
stated
its
intention
to
continue
reducing
its
U.S.
Treasury,
government
agency
debt
and
agency
mortgage-
backed
securities
holdings,
and
anticipated
future
federal
funds
rate
increases
would
be
appropriate.
Shortly
after
the
reporting
period,
the
Federal
Reserve
raised
the
federal
funds
rate
again
by
0.75%
at
its
November
2022
meeting,
increasing
the
rate
to
4.00%.
During
the
six-month
period
ended
October
31,
2022,
municipal
bonds,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-4.43%
total
return,
influenced
by
high
levels
of
fixed
income
market
volatility,
tighter
monetary
policy
and
risk-off
sentiment
that
led
to
outflows
from
municipals.
1
Municipal
bond
fundamentals
remained
strong,
however,
given
prudent
fiscal
management
and
many
issuers
reporting
budget
surpluses
for
2022
as
federal
government
transfers
boosted
revenues.
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
team.
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,
2022,
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
Schedule
of
Investments
8
Financial
Statements
46
Notes
to
Financial
Statements
50
Shareholder
Information
58
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,
2022.
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
$10.97
on
April
30,
2022,
to
$10.04
on
October
31,
2022.
The
Fund’s
Class
A
shares
paid
dividends
totaling
16.3493
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
3.11%
based
on
an
annualization
of
October’s
2.7029
cents
per
share
dividend
and
the
maximum
offering
price
of
$10.43
on
October
31,
2022.
An
investor
in
the
2022
maximum
federal
personal
income
tax
bracket
of
37.00%
(plus
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of
5.25%
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
.
*Does
not
include
cash
and
cash
equivalents.
Municipal
Bond
Market
Overview
During
the
six
months
ending
October
31,
2022,
U.S.
consumer
inflation
continued
its
unchecked
rise
as
expanded
consumer
spending
was
met
with
the
ongoing
impact
of
slow-to-improve
global
supply
chains.
In
response,
the
U.S.
Federal
Reserve
raised
short-term
interest
rates
a
total
of
275
basis
points
(bps)
during
the
period
under
review,
with
the
promise
of
additional
hikes
through
the
remainder
of
2022.
U.S.
Treasury
(UST)
yields
moved
much
higher
over
the
past
six
months,
with
the
benchmark
10-year
UST
yield
(which
moves
inversely
to
price)
gaining
112
bps
to
end
the
period
at
4.05%.
The
main
drivers
of
municipal
bond
(muni)
performance
have
been
rising
UST
yields
and
flows
out
of
the
asset
class.
Higher
overall
fixed
income
market
volatility
has
driven
investors
away
from
most
spread
sectors,
especially
those
with
longer-maturity
profiles,
including
munis.
Net
supply
of
munis
has
been
limited
as
issuers
face
higher
all-in
financing
costs.
Moving
into
a
potential
economic
slowdown,
muni
fundamentals
remained
positive
amid
prudent
fiscal
management.
Portfolio
Composition
10/31/22
%
of
Total
Investments*
Health
Care
19.34%
Transportation
18.08%
Utilities
14.11%
Special
Tax
8.20%
Housing
8.07%
Industrial
Dev.
Revenue
and
Pollution
Control
7.69%
Lease
6.00%
Education
5.94%
Local
4.97%
Refunded
3.79%
State
General
Obligation
3.46%
Other
Revenue
Bonds
0.35%
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
13
.
Franklin
Federal
Tax-Free
Income
Fund
4
franklintempleton.com
Semiannual
Report
For
the
six-month
period,
U.S.
fixed
income
sectors
had
mixed
performance
relative
to
equities,
as
measured
by
the
Standard
&
Poor’s
®
500
Index,
which
posted
a
-5.50%
total
return
for
the
period.
3
Investment-grade
munis,
as
measured
by
the
Bloomberg
Municipal
Bond
Index,
posted
a
-4.43%
total
return,
while
USTs,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-6.24%
total
return,
and
investment-grade
corporate
bonds,
as
measured
by
the
Bloomberg
U.S.
Corporate
Bond
Investment
Grade
Index,
posted
a
-7.82%
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,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
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.
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,
2022
Franklin
Federal
Tax-Free
Income
Fund
5
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
10/31/22
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
A
4,5
6-Month
-7.06%
-10.55%
1-Year
-15.26%
-18.44%
5-Year
-2.46%
-1.25%
10-Year
+10.70%
+0.64%
Advisor
6-Month
-6.94%
-6.94%
1-Year
-15.10%
-15.10%
5-Year
-1.36%
-0.27%
10-Year
+12.57%
+1.19%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
3.11%
5.25%
3.90%
6.59%
Advisor
3.47%
5.86%
4.30%
7.26%
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.
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
proj-
ects,
such
as
utilities,
hospitals,
higher
education
and
transportation.
A
change
that
affects
one
project
would
likely
affect
all
similar
projects,
thereby
increasing
market
risk.
The
manager’s
portfolio
selection
strategy
is
not
solely
based
on
ESG
considerations,
and
therefore
the
issuers
in
which
the
Fund
invests
may
not
be
considered
ESG-focused
companies.
Integrating
ESG
considerations
into
the
investment
process
is
not
a
guarantee
that
better
performance
will
be
achieved.
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.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
total
annual
operating
expenses
are
sourced
from
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
October
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
10/31/22.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2022
maximum
federal
income
tax
rate
of
37.00%
plus
3.80%
Medicare
tax.
8.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
9.
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
(5/1/22–10/31/22)
Share
Class
Net
Investment
Income
A
$0.163493
A1
$0.171546
C
$0.142002
R6
$0.179660
Advisor
$0.176910
Total
Annual
Operating
Expenses
9
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
5/1/22
Ending
Account
Value
10/31/22
Expenses
Paid
During
Period
5/1/22–10/31/22
1,2
Ending
Account
Value
10/31/22
Expenses
Paid
During
Period
5/1/22–10/31/22
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$929.40
$3.83
$1,021.24
$4.01
0.79%
A1
$1,000
$930.10
$3.10
$1,022.00
$3.24
0.64%
C
$1,000
$927.50
$5.76
$1,019.23
$6.04
1.19%
R6
$1,000
$930.90
$2.36
$1,022.76
$2.47
0.49%
Advisor
$1,000
$930.60
$2.60
$1,022.51
$2.73
0.54%
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,
2022
(unaudited)
Year
Ended
April
30,
Year
Ended
April
30,
2019
a
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$10.97
$12.31
$11.60
$11.82
$11.62
Income
from
investment
operations
b
:
Net
investment
income
c
.........................
0.17
0.31
0.33
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
...........
(0.94)
(1.35)
0.71
(0.22)
0.19
Total
from
investment
operations
....................
(0.77)
(1.04)
1.04
0.13
0.44
Less
distributions
from:
Net
investment
income
..........................
(0.16)
(0.30)
(0.33)
(0.35)
(0.24)
Net
asset
value,
end
of
period
......................
$10.04
$10.97
$12.31
$11.60
$11.82
Total
return
d
...................................
(7.06)%
(8.62)%
9.01%
1.07%
3.87%
Ratios
to
average
net
assets
e
Expenses
f
.....................................
0.79%
g
0.77%
g
0.78%
g
0.77%
0.78%
Net
investment
income
...........................
3.08%
2.56%
2.72%
2.96%
3.45%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$1,744,821
$1,916,791
$1,770,979
$1,110,207
$567,500
Portfolio
turnover
rate
............................
14.90%
22.08%
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,
2022
(unaudited)
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.97
$12.31
$11.60
$11.82
$11.68
$12.02
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.17
0.33
0.35
0.37
0.42
0.44
Net
realized
and
unrealized
gains
(losses)
(0.93)
(1.35)
0.70
(0.22)
0.16
(0.34)
Total
from
investment
operations
........
(0.76)
(1.02)
1.05
0.15
0.58
0.10
Less
distributions
from:
Net
investment
income
..............
(0.17)
(0.32)
(0.34)
(0.37)
(0.44)
(0.44)
Net
asset
value,
end
of
period
..........
$10.04
$10.97
$12.31
$11.60
$11.82
$11.68
Total
return
c
.......................
(6.99)%
(8.48)%
9.17%
1.22%
5.06%
0.85%
Ratios
to
average
net
assets
d
Expenses
.........................
0.64%
e,f
0.63%
e,f
0.63%
e,f
0.62%
e
0.63%
e
0.63%
Net
investment
income
...............
3.22%
2.71%
2.89%
3.11%
3.60%
3.66%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$5,278,042
$6,256,503
$6,919,289
$6,833,018
$7,821,881
$8,616,659
Portfolio
turnover
rate
................
14.90%
22.08%
16.18%
20.23%
14.58%
16.46%
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,
and
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
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
October
31,
2022
(unaudited)
Year
Ended
April
30,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.96
$12.30
$11.59
$11.81
$11.68
$12.01
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.14
0.26
0.29
0.31
0.35
0.37
Net
realized
and
unrealized
gains
(losses)
(0.92)
(1.34)
0.70
(0.22)
0.15
(0.32)
Total
from
investment
operations
........
(0.78)
(1.08)
0.99
0.09
0.50
0.05
Less
distributions
from:
Net
investment
income
..............
(0.14)
(0.26)
(0.28)
(0.31)
(0.37)
(0.38)
Net
asset
value,
end
of
period
..........
$10.04
$10.96
$12.30
$11.59
$11.81
$11.68
Total
return
c
.......................
(7.25)%
(8.99)%
8.58%
0.67%
4.39%
0.37%
Ratios
to
average
net
assets
d
Expenses
.........................
1.19%
e,f
1.18%
e,f
1.18%
e,f
1.17%
e
1.18%
e
1.18%
Net
investment
income
...............
2.67%
2.15%
2.35%
2.56%
3.05%
3.11%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$264,542
$340,772
$543,196
$657,344
$841,909
$1,220,402
Portfolio
turnover
rate
................
14.90%
22.08%
16.18%
20.23%
14.58%
16.46%
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,
and
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
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
October
31,
2022
(unaudited)
Year
Ended
April
30,
Year
Ended
April
30,
2018
a
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.98
$12.32
$11.61
$11.83
$11.69
$12.03
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.18
0.35
0.37
0.39
0.44
0.34
Net
realized
and
unrealized
gains
(losses)
(0.93)
(1.35)
0.70
(0.22)
0.15
(0.38)
Total
from
investment
operations
........
(0.75)
(1.00)
1.07
0.17
0.59
(0.04)
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.34)
(0.36)
(0.39)
(0.45)
(0.30)
Net
asset
value,
end
of
period
..........
$10.05
$10.98
$12.32
$11.61
$11.83
$11.69
Total
return
d
.......................
(6.91)%
(8.35)%
9.31%
1.37%
5.19%
(0.32)%
Ratios
to
average
net
assets
e
Expenses
f
.........................
0.49%
g
0.48%
g
0.49%
g
0.49%
g
0.49%
g
0.49%
Net
investment
income
...............
3.37%
2.88%
3.00%
3.24%
3.74%
3.80%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$663,248
$761,716
$294,727
$196,774
$177,983
$365,406
Portfolio
turnover
rate
................
14.90%
22.08%
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,
2022
(unaudited)
Year
Ended
April
30,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.98
$12.32
$11.61
$11.83
$11.69
$12.03
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.18
0.34
0.36
0.38
0.43
0.45
Net
realized
and
unrealized
gains
(losses)
(0.93)
(1.35)
0.71
(0.22)
0.16
(0.33)
Total
from
investment
operations
........
(0.75)
(1.01)
1.07
0.16
0.59
0.12
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.33)
(0.36)
(0.38)
(0.45)
(0.46)
Net
asset
value,
end
of
period
..........
$10.05
$10.98
$12.32
$11.61
$11.83
$11.69
Total
return
c
.......................
(6.94)%
(8.39)%
9.27%
1.33%
5.15%
0.95%
Ratios
to
average
net
assets
d
Expenses
.........................
0.54%
e,f
0.52%
e,f
0.53%
e,f
0.52%
e
0.53%
e
0.53%
Net
investment
income
...............
3.32%
2.80%
2.98%
3.21%
3.70%
3.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,082,981
$1,383,620
$1,829,553
$1,465,542
$1,210,861
$1,207,490
Portfolio
turnover
rate
................
14.90%
22.08%
16.18%
20.23%
14.58%
16.46%
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,
2022
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
Municipal
Green
Bond
ETF
.....................................
83,000
$
1,835,130
Total
Management
Investment
Companies
(Cost
$2,255,733)
.....................
1,835,130
Principal
Amount
a
a
a
a
Corporate
Bonds
0.1%
Software
0.1%
b
Haven
at
Elgin
LLC
,
5.25%,
7/01/53
...................................................
$
7,890,000
7,890,000
5.25%,
12/31/53
...................................................
3,610,000
3,610,000
11,500,000
Total
Corporate
Bonds
(Cost
$11,500,000)
......................................
11,500,000
Municipal
Bonds
98.9%
Alabama
1.8%
Alabama
Public
Health
Care
Authority
(The)
,
State
of
Alabama
Department
of
Public
Health
,
Revenue
,
2015
,
Refunding
,
5
%
,
9/01/44
...........................
17,085,000
17,304,149
Alabama
Special
Care
Facilities
Financing
Authority-Birmingham
,
Ascension
Health
Credit
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
11/15/46
...................
10,000,000
9,874,167
c
Black
Belt
Energy
Gas
District
,
Revenue,
2021
B,
Mandatory
Put,
4%,
12/01/26
...........................
17,290,000
16,649,592
Revenue,
2022
B-1,
Mandatory
Put,
4%,
10/01/27
.........................
32,950,000
31,275,280
Revenue,
2022
F,
Mandatory
Put,
5.5%,
12/01/28
.........................
24,715,000
24,975,444
Board
of
Water
&
Sewer
Commissioners
of
the
City
of
Mobile
,
Revenue
,
2014
,
Refunding
,
5
%
,
1/01/36
.............................................
11,300,000
11,315,718
Chilton
County
Health
Care
Authority
,
County
of
Chilton
Sales
Tax
,
Revenue
,
2015
A
,
5
%
,
11/01/40
.....................................................
8,425,000
8,200,079
d
County
of
Mobile
,
Revenue
,
144A,
2020
,
4
%
,
11/01/45
.......................
14,000,000
9,982,993
Health
Care
Authority
of
the
City
of
Huntsville
(The)
,
Health
Care
Authority
of
City
of
Huntsville
(The)
Obligated
Group
,
Revenue
,
2020
B
,
4
%
,
6/01/45
..............
3,500,000
2,955,534
c
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue,
2021
B,
Mandatory
Put,
4%,
12/01/31
...........................
1,000,000
900,869
e
Revenue,
2022
A-1,
Mandatory
Put,
5.5%,
12/01/29
........................
12,850,000
12,996,372
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
5,000,000
4,965,528
Water
Works
Board
of
the
City
of
Birmingham
(The)
,
Revenue
,
2013
B
,
Pre-Refunded
,
5
%
,
1/01/43
......................................................
8,000,000
8,024,325
159,420,050
Alaska
0.4%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2015,
Refunding,
5.25%,
10/01/36
.............................
16,045,000
16,459,542
Revenue,
2015,
Refunding,
5%,
10/01/39
................................
12,950,000
13,193,030
Northern
Tobacco
Securitization
Corp.
,
Revenue,
Senior
Lien,
2021
A,
1,
Refunding,
4%,
6/01/50
...................
3,250,000
2,554,276
Revenue,
Senior
Lien,
2021
B-1,
2,
Refunding,
0.5%,
6/01/31
................
170,000
167,342
Revenue,
Senior
Lien,
2021
B-1,
2,
Refunding,
4%,
6/01/50
..................
2,000,000
1,856,008
34,230,198
Arizona
2.3%
Arizona
Industrial
Development
Authority
,
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/32
............
205,000
200,252
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
5%,
7/01/33
............
220,000
212,860
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/34
............
230,000
200,610
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/35
............
235,000
202,113
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/36
............
220,000
187,047
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
Industrial
Development
Authority,
(continued)
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/41
............
$
720,000
$
569,004
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/51
............
550,000
393,595
Kipp
New
York,
Inc.
Jerome
Facility,
Revenue,
2021
B,
4%,
7/01/61
............
6,050,000
4,096,273
Leman
Academy
of
Excellence
Obligated
Group,
Revenue,
2022
A,
Refunding,
4.5%,
7/01/54
........................................................
10,000,000
7,938,120
Arizona
State
University
,
Revenue
,
2016
C
,
5
%
,
7/01/42
......................
9,000,000
9,295,944
c
Chandler
Industrial
Development
Authority
,
Intel
Corp.
,
Revenue
,
2019
,
Mandatory
Put
,
5
%
,
6/03/24
......................................................
15,000,000
15,008,907
City
of
Lake
Havasu
City
,
Wastewater
System
,
Revenue
,
2015
B
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/40
...............................................
15,000,000
15,413,963
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
25,000,000
21,819,785
Airport,
Revenue,
Junior
Lien,
2019
B,
5%,
7/01/49
........................
5,000,000
4,761,270
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
4%,
7/01/45
..................................................
14,985,000
12,040,107
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/32
........................................................
6,000,000
6,715,933
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/34
........................................................
5,000,000
5,614,937
State
of
Arizona
Department
of
Revenue,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/35
........................................................
9,860,000
11,095,195
Glendale
Industrial
Development
Authority
,
People
of
Faith,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
5/15/56
........................................
10,000,000
8,338,347
Glendale
Municipal
Property
Corp.
,
City
of
Glendale
Excise
Tax
,
Revenue
,
2012
C
,
Refunding
,
5
%
,
7/01/38
.............................................
15,500,000
15,528,334
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
2019
F,
4%,
1/01/45
...............
25,000,000
21,338,400
Banner
Health
Obligated
Group,
Revenue,
A,
4%,
1/01/41
...................
10,000,000
8,996,689
Christian
Care
Obligated
Group,
Revenue,
2016
A,
Pre-Refunded,
5%,
1/01/36
...
5,000,000
5,221,944
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.,
Revenue,
2009
A,
Refunding,
3.6%,
2/01/40
.............
19,500,000
15,761,010
Southern
California
Edison
Co.,
Revenue,
2000
A,
Refunding,
2.4%,
6/01/35
.....
5,000,000
3,661,729
University
of
Arizona
(The)
,
Revenue
,
2014
,
5
%
,
8/01/44
......................
10,000,000
10,100,023
204,712,391
Arkansas
0.2%
Arkansas
Development
Finance
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/40
........................................................
1,100,000
1,025,589
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2020
B-1,
Refunding,
5%,
9/01/44
........................................................
5,000,000
4,553,108
University
of
Arkansas
,
Fayetteville,
Revenue,
2017,
5%,
11/01/47
...............................
6,500,000
6,618,666
Fayetteville,
Revenue,
2019
A,
Refunding,
5%,
11/01/49
.....................
3,000,000
3,065,511
15,262,874
California
6.9%
d
Align
Affordable
Housing
Bond
Fund
LP
,
Coronado
Springs
Tower
LLC
,
Revenue
,
144A,
2020-2
,
A
,
4
%
,
9/01/27
.........................................
17,835,000
16,740,644
c
ARC70
II
TRUST
,
Revenue
,
2021-1
,
A
,
Mandatory
Put
,
4
%
,
12/01/37
............
11,260,000
8,954,254
c
California
Community
Choice
Financing
Authority
,
Revenue
,
2022
A-1
,
Mandatory
Put
,
4
%
,
8/01/28
......................................................
15,000,000
14,414,178
d
California
Community
Housing
Agency
,
Aster
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
2/01/56
..........
20,600,000
15,452,095
Brio
Apartments
&
Next
on
Lex
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
2/01/56
....................................................
17,850,000
13,393,799
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)
d
California
Community
Housing
Agency,
(continued)
K
Street
Flats,
Revenue,
144A,
2021
A-1,
3%,
2/01/57
......................
$
10,000,000
$
5,755,183
California
Infrastructure
&
Economic
Development
Bank
,
State
of
California
Department
of
Transportation
Seismic
Surcharge
,
Revenue,
First
Lien
,
2003
A
,
Pre-Refunded
,
AMBAC
Insured
,
5
%
,
7/01/33
.........................................
24,500,000
26,558,211
f
California
Statewide
Communities
Development
Authority
,
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5%,
8/15/42
........................................................
425,000
417,906
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.125%,
8/15/47
........................................................
620,000
606,167
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.25%,
8/15/52
........................................................
7,815,000
7,739,856
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.375%,
8/15/57
........................................................
12,495,000
12,417,742
d
CMFA
Special
Finance
Agency
,
Latitude33,
Revenue,
144A,
2021
A-1,
3%,
12/01/56
.......................
12,000,000
7,017,442
Solana
at
Grand,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
8/01/56
..........
5,300,000
3,968,814
d
CMFA
Special
Finance
Agency
Enclave
,
Revenue,
Senior
Lien
,
144A,
2022
A-1
,
4
%
,
8/01/58
.........................................................
26,500,000
19,092,693
d
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue,
Senior
Lien
,
144A,
2022
A-1
,
3.25
%
,
2/01/57
............................................
27,500,000
17,130,179
Corona-Norco
Unified
School
District
,
GO,
C,
AGMC
Insured,
6.2%,
8/01/29
..................................
3,250,000
3,647,131
GO,
C,
Pre-Refunded,
AGMC
Insured,
6.8%,
8/01/39
.......................
8,500,000
9,783,619
GO,
C,
AGMC
Insured,
Zero
Cpn
.,
8/01/39
...............................
7,500,000
3,210,291
d
CSCDA
Community
Improvement
Authority
,
777
Place-Pomona,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3.6%,
5/01/47
.......
10,000,000
7,319,612
777
Place-Pomona,
Revenue,
Senior
Lien,
144A,
2021
A-2,
3.25%,
5/01/57
......
12,500,000
7,926,829
Acacia
on
Santa
Rosa
Creek,
Revenue,
Senior
Lien,
144A,
2021
A,
4%,
10/01/56
.
13,000,000
9,729,823
Crescent
(The),
Revenue,
Senior
Lien,
144A,
2022
A-2,
4.3%,
7/01/59
..........
13,700,000
10,326,312
Escondido
Portfolio,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
6/01/48
........
10,000,000
6,280,768
Jefferson
Platinum
Triangle
Apartments,
Revenue,
144A,
2021
A-1,
2.875%,
8/01/41
3,105,000
2,413,701
Monterey
Station
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
7/01/43
.
7,855,000
5,387,500
Park
Crossing
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3.25%,
12/01/58
.
18,750,000
11,399,239
Vineyard
Garden
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3.25%,
10/01/58
14,000,000
8,527,473
Waterscape
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3%,
9/01/56
......
1,670,000
988,655
Westgate
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
6/01/47
......
15,000,000
10,171,846
Wood
Creek
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
12/01/49
...
30,000,000
18,165,045
Wood
Creek
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-2,
4%,
12/01/58
...
25,000,000
16,691,215
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Pre-Refunded,
6%,
1/15/49
............................
20,000,000
20,666,882
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
1/15/30
..............
15,475,000
15,853,536
Revenue,
2013
A,
Refunding,
Zero
Cpn
.,
1/15/42
..........................
20,000,000
20,292,596
Los
Angeles
Department
of
Water
&
Power
,
Power
System
,
Revenue
,
2013
B
,
5
%
,
7/01/31
.........................................................
20,000,000
20,216,490
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
12,500,000
14,251,014
New
Haven
Unified
School
District
,
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/31
............................
2,055,000
1,454,141
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/32
............................
7,830,000
5,270,197
GO,
2009,
AGMC
Insured,
Zero
Cpn
.,
8/01/33
............................
7,660,000
4,900,715
Oro
Grande
Elementary
School
District
,
COP,
2020,
Refunding,
4%,
9/15/24
....................................
2,135,000
2,096,175
COP,
2020,
Refunding,
4%,
9/15/25
....................................
2,120,000
2,056,183
COP,
2020,
Refunding,
4%,
9/15/27
....................................
2,400,000
2,268,233
COP,
2020,
Refunding,
4%,
9/15/28
....................................
2,095,000
1,955,614
Rialto
Unified
School
District
,
GO
,
2011
A
,
AGMC
Insured
,
Zero
Cpn
.,
8/01/36
......
20,000,000
10,128,060
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)
California
(continued)
San
Francisco
City
&
County
Airport
Comm
-San
Francisco
International
Airport
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/01/49
...............................
$
39,805,000
$
38,239,788
San
Joaquin
Hills
Transportation
Corridor
Agency
,
Revenue,
Senior
Lien
,
1993
,
ETM,
Zero
Cpn
.,
1/01/23
.................................................
7,000,000
6,962,192
San
Jose
Unified
School
District
,
GO
,
2018
E
,
4
%
,
8/01/42
....................
10,600,000
9,862,511
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn
.,
8/01/42
...............
50,000,000
46,658,620
San
Mateo
Union
High
School
District
,
GO,
2011
A,
Zero
Cpn
.,
9/01/33
.......................................
6,065,000
5,110,276
GO,
2011
A,
Zero
Cpn
.,
9/01/41
.......................................
20,000,000
17,577,274
Santa
Ana
Unified
School
District
,
GO,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/35
...........................
10,000,000
5,575,982
GO,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/36
...........................
18,865,000
9,970,369
GO,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
8/01/37
...........................
10,000,000
4,992,474
Santa
Monica-Malibu
Unified
School
District
,
GO
,
A
,
4
%
,
8/01/44
...............
9,360,000
8,654,810
State
of
California
,
GO,
5.9%,
4/01/23
.................................................
300,000
303,475
GO,
2002,
NATL
Insured,
5%,
10/01/32
.................................
20,000
20,032
West
Contra
Costa
Unified
School
District
,
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/29
....................
10,000,000
7,644,831
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/30
....................
20,845,000
15,212,027
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/31
....................
20,000,000
13,875,962
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn
.,
8/01/32
....................
10,730,000
7,065,284
620,763,965
Colorado
2.8%
City
&
County
of
Denver
,
Airport
System,
Revenue,
1992
C,
NATL
Insured,
ETM,
6.125%,
11/15/25
.......
3,590,000
3,792,066
Airport
System,
Revenue,
2013
B,
5.25%,
11/15/33
........................
16,405,000
16,579,037
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/37
..................
10,000,000
9,868,023
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/38
..................
2,000,000
1,961,156
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/43
..................
11,000,000
10,622,268
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/48
..................
10,000,000
9,526,073
Airport
System,
Revenue,
2018
A,
Refunding,
5.25%,
12/01/48
...............
26,000,000
25,677,168
Dedicated
Excise
Tax,
Revenue,
2018
A-1,
5%,
8/01/48
.....................
39,690,000
40,604,243
Dedicated
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn
.,
8/01/35
................
2,000,000
1,089,197
Dedicated
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn
.,
8/01/36
................
2,500,000
1,289,270
Dedicated
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn
.,
8/01/37
................
2,455,000
1,194,032
Dedicated
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn
.,
8/01/38
................
2,000,000
915,652
Colorado
Educational
&
Cultural
Facilities
Authority
,
James
Irwin
Educational
Foundation
Obligated
Group
,
Revenue
,
2022
,
5
%
,
9/01/62
...................
2,200,000
1,932,367
Colorado
Health
Facilities
Authority
,
AdventHealth
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
11/15/41
......
30,505,000
30,995,328
AdventHealth
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/48
...............
12,000,000
12,012,155
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016
A,
5%,
12/01/41
...
5,000,000
4,998,186
Children's
Hospital
Colorado
Obligated
Group,
Revenue,
2016
A,
5%,
12/01/44
...
10,200,000
9,983,330
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
4%,
8/01/49
13,000,000
10,136,799
CommonSpirit
Health
Obligated
Group,
Revenue,
2022
A,
5.25%,
11/01/52
......
10,500,000
10,399,598
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
12/01/50
...........................................
4,930,000
3,643,756
Intermountain
Healthcare
Obligated
Group,
Revenue,
2019
B,
Refunding,
4%,
1/01/40
........................................................
10,000,000
9,169,827
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/45
...
1,000,000
792,183
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
...
3,000,000
2,219,994
Eagle
River
Water
and
Sanitation
District
,
Revenue
,
2020
A
,
AGMC
Insured
,
4
%
,
12/01/45
........................................................
1,250,000
1,063,843
d
Fiddlers
Business
Improvement
District
,
GO
,
144A,
2022
,
Refunding
,
5.55
%
,
12/01/47
3,500,000
3,317,086
Park
Creek
Metropolitan
District
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/01/46
......
2,875,000
2,955,058
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)
Colorado
(continued)
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
$
20,000,000
$
22,596,016
Regional
Transportation
District
,
Denver
Transit
Partners
LLC
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
7/15/39
.............................................
1,000,000
857,576
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
3.75%,
12/01/40
.................................................
500,000
376,276
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
4.25%,
12/01/50
.................................................
1,150,000
858,278
251,425,841
Connecticut
0.2%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/40
..........
2,250,000
1,956,651
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/38
..........
2,200,000
1,960,886
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
..........
6,000,000
5,053,966
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
4%,
7/01/41
...
5,000,000
4,171,197
University
of
Hartford
(The),
Revenue,
2022
P,
5.375%,
7/01/52
...............
6,000,000
5,433,547
State
of
Connecticut
,
Special
Tax
,
2020
A
,
4
%
,
5/01/39
.......................
1,650,000
1,540,363
20,116,610
Delaware
0.1%
County
of
Kent
,
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/40
...........................
1,100,000
970,154
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/48
...........................
1,485,000
1,240,816
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/53
...........................
1,100,000
900,439
Delaware
State
Economic
Development
Authority
,
Newark
Charter
School,
Inc.,
Revenue,
2021,
Refunding,
4%,
9/01/41
..........
1,600,000
1,353,561
Newark
Charter
School,
Inc.,
Revenue,
2021,
Refunding,
4%,
9/01/51
..........
3,300,000
2,586,257
7,051,227
Florida
10.3%
Alachua
County
Health
Facilities
Authority
,
Oak
Hammock
at
the
University
of
Florida
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
10/01/40
...........................................
2,500,000
2,009,817
Oak
Hammock
at
the
University
of
Florida
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
10/01/46
...........................................
1,750,000
1,315,712
Brevard
County
Health
Facilities
Authority
,
Health
First,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5%,
4/01/39
......
5,000,000
5,108,703
Health
First,
Inc.
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
4/01/52
.....
10,000,000
9,563,477
Capital
Projects
Finance
Authority
,
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/31
......
1,500,000
1,473,506
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/32
......
1,100,000
1,067,332
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/35
......
1,000,000
951,493
Capital
Trust
Agency,
Inc.
,
d
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
22,800,000
18,682,776
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/31
.................
500,000
476,821
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/41
.................
325,000
282,297
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/51
.................
385,000
311,502
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/56
.................
485,000
379,995
d
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
2,000,000
1,227,875
Central
Florida
Expressway
Authority
,
Revenue,
Senior
Lien,
2016
B,
Refunding,
4%,
7/01/39
.....................
5,000,000
4,424,891
Revenue,
Senior
Lien,
2016
B,
Refunding,
4%,
7/01/40
.....................
5,825,000
5,092,514
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
................................
16,000,000
16,173,083
Centre
Lake
Community
Development
District
,
Special
Assessment,
2021,
3%,
5/01/42
.................................
1,000,000
672,892
Special
Assessment,
2021,
4%,
5/01/52
.................................
1,275,000
955,271
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)
City
of
Atlantic
Beach
,
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/38
...................................................
$
1,105,000
$
1,084,668
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
...................................................
9,235,000
8,538,212
City
of
Cape
Coral
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/01/39
......
10,000,000
10,376,441
City
of
Cocoa
,
Water
&
Sewer
,
Revenue
,
2018
B
,
5
%
,
10/01/48
.................
10,325,000
10,759,577
City
of
Deltona
,
Utility
System
,
Revenue
,
2013
,
Pre-Refunded
,
AGMC
Insured
,
5.125
%
,
10/01/39
........................................................
5,000,000
5,082,495
City
of
Fort
Myers
,
Utility
System
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
10/01/44
......
7,000,000
6,110,906
City
of
Gainesville
,
Utilities
System,
Revenue,
2017
A,
5%,
10/01/37
..........................
5,000,000
5,185,576
Utilities
System,
Revenue,
2019
A,
5%,
10/01/44
..........................
23,780,000
24,263,521
Utilities
System,
Revenue,
2019
A,
5%,
10/01/47
..........................
9,000,000
9,100,769
City
of
Jacksonville
,
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/45
..
5,000,000
4,150,870
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
11/01/50
..
15,000,000
14,482,989
City
of
Lakeland
,
Lakeland
Regional
Health
Systems
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/15/45
.....................................................
12,300,000
12,040,223
City
of
Melbourne
,
Water
&
Sewer,
Revenue,
2000
A,
FGIC
Insured,
ETM,
Zero
Cpn
.,
10/01/26
......
1,500,000
1,307,086
Water
&
Sewer,
Revenue,
2002
B,
Refunding,
NATL
Insured,
Zero
Cpn
.,
10/01/26
.
4,500,000
3,882,272
City
of
Miami
Beach
,
Revenue,
2015
A,
5%,
9/01/40
........................................
11,000,000
11,202,552
Stormwater
,
Revenue,
2015,
5%,
9/01/41
................................
10,000,000
10,318,686
City
of
Palmetto
,
Renaissance
Arts
and
Education,
Inc.
,
Revenue
,
2022
A
,
Refunding
,
5.25
%
,
6/01/52
...................................................
3,000,000
2,703,792
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/50
........................................................
4,730,000
3,432,069
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
9/01/56
.
10,150,000
6,993,443
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
5,000,000
4,336,270
Baptist
Health
South
Florida
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/42
........................................................
21,500,000
21,193,513
City
of
St.
Petersburg
,
Public
Utility
,
Revenue
,
2018
,
Refunding
,
4
%
,
10/01/43
......
15,000,000
13,220,088
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
7/01/37
.........................................
5,000,000
5,005,242
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2020
B,
4%,
7/01/45
..................................................
6,150,000
5,016,856
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/35
............
755,000
387,939
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/36
............
800,000
385,697
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn
.,
9/01/37
............
800,000
363,711
Collier
County
Educational
Facilities
Authority
,
Hodges
University,
Inc.
,
Revenue
,
2013
,
Pre-Refunded
,
5.625
%
,
11/01/28
......................................
2,860,000
2,925,249
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/49
.....
15,000,000
12,390,636
County
of
Hillsborough
,
Wastewater
Impact
Fee
,
Revenue
,
2021
,
4
%
,
5/01/37
......
650,000
605,087
County
of
Lee
,
Airport
,
Revenue
,
2021
B
,
4
%
,
10/01/38
.......................
7,435,000
6,441,193
County
of
Miami-Dade
,
Aviation,
Revenue,
2014
B,
Refunding,
5%,
10/01/37
.......................
10,000,000
10,029,158
Aviation,
Revenue,
2017
B,
Refunding,
5%,
10/01/40
.......................
5,000,000
4,782,636
Aviation,
Revenue,
2019
A,
5%,
10/01/49
................................
22,500,000
21,360,202
Aviation,
Revenue,
2020
A,
Refunding,
4%,
10/01/41
.......................
4,950,000
4,281,763
Seaport
Department,
Revenue,
2013
A,
Pre-Refunded,
6%,
10/01/38
...........
10,000,000
10,241,269
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)
County
of
Miami-Dade,
(continued)
Transit
System,
Revenue,
2015,
Refunding,
5%,
7/01/35
....................
$
7,000,000
$
7,243,393
Transit
System,
Revenue,
2018,
5%,
7/01/43
.............................
10,000,000
10,256,277
Transit
System,
Revenue,
2018,
4%,
7/01/47
.............................
5,000,000
4,128,015
Transit
System,
Revenue,
2020
A,
4%,
7/01/48
...........................
5,000,000
4,105,211
Water
&
Sewer
System,
Revenue,
2019,
5%,
10/01/43
......................
5,000,000
5,117,557
Water
&
Sewer
System,
Revenue,
2019
B,
4%,
10/01/49
....................
27,500,000
22,945,574
Water
&
Sewer
System,
Revenue,
2021,
4%,
10/01/38
......................
3,000,000
2,787,437
County
of
Monroe
,
Airport,
Revenue,
2022,
5.25%,
10/01/47
................................
1,000,000
964,024
Airport,
Revenue,
2022,
5%,
10/01/52
..................................
1,500,000
1,367,164
County
of
Osceola
,
Transportation
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
10/01/49
...
4,500,000
4,086,112
County
of
Seminole
,
Water
&
Sewer
,
Revenue
,
2019
,
Refunding
,
4
%
,
10/01/40
.....
8,500,000
7,814,038
d
Epperson
North
Community
Development
District
,
Special
Assessment
,
144A,
2018
A-1
,
5.5
%
,
11/01/39
................................................
1,500,000
1,466,640
Escambia
County
Health
Facilities
Authority
,
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/36
.
10,165,000
9,991,404
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/40
.
4,000,000
3,848,864
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/45
.
19,465,000
15,345,729
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/50
.
18,985,000
14,436,562
Florida
Development
Finance
Corp.
,
River
City
Education
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/35
..........
325,000
278,985
River
City
Education
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/45
..........
600,000
458,001
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/33
....................................................
1,350,000
1,300,360
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/39
....................................................
5,350,000
4,901,238
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/52
....................................................
7,000,000
5,963,475
Florida
Housing
Finance
Corp.
,
Revenue
,
2020-1
,
GNMA
Insured
,
2.75
%
,
7/01/50
...
1,450,000
1,158,727
Fort
Pierce
Utilities
Authority
,
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn
.,
10/01/23
....................
3,060,000
2,959,321
Revenue,
1999
B,
AMBAC
Insured,
Zero
Cpn
.,
10/01/24
....................
2,560,000
2,382,385
Greater
Orlando
Aviation
Authority
,
Revenue
,
2019
A
,
4
%
,
10/01/49
..............
15,000,000
12,281,195
Halifax
Hospital
Medical
Center
,
Halifax
Hospital
Medical
Center
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
6/01/36
.................................
2,500,000
2,505,710
Heritage
Harbour
North
Community
Development
District
,
Special
Assessment
,
2014
,
5.125
%
,
5/01/45
...................................................
2,170,000
2,028,792
Herons
Glen
Recreation
District
,
Special
Assessment,
2020,
Refunding,
BAM
Insured,
4%,
5/01/45
.............
1,515,000
1,319,377
Special
Assessment,
2020,
Refunding,
BAM
Insured,
4%,
5/01/50
.............
1,800,000
1,524,107
Hillsborough
County
Aviation
Authority
,
Revenue,
2015
A,
5%,
10/01/44
.......................................
5,000,000
4,900,640
Revenue,
2018
A,
5%,
10/01/48
.......................................
20,000,000
19,054,932
Revenue,
2018
E,
5%,
10/01/48
.......................................
5,000,000
4,824,927
Hillsborough
County
Industrial
Development
Authority
,
Florida
Health
Sciences
Center,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
8/01/50
.......................
6,500,000
4,935,470
Hollywood
Beach
Community
Development
District
I
,
Special
Assessment
,
2020
,
Refunding
,
4
%
,
10/01/45
............................................
4,000,000
3,315,762
JEA
Electric
System
,
Revenue,
2020
A,
Refunding,
4%,
10/01/35
..............................
5,000,000
4,604,466
Revenue,
2020
A-3,
Refunding,
4%,
10/01/38
.............................
9,080,000
8,205,844
Revenue,
2020
A-3,
Refunding,
4%,
10/01/39
.............................
9,300,000
8,337,713
Lee
County
Industrial
Development
Authority
,
Shell
Point
Obligated
Group
,
Revenue
,
2019
,
5
%
,
11/15/44
................................................
6,360,000
6,073,770
Lee
Memorial
Health
System
,
Lee
Memorial
Health
System
Obligated
Group
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
4/01/44
.....................................
4,220,000
4,131,834
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)
Florida
(continued)
d
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn
.,
5/01/57
$
27,000,000
$
22,072,500
Miami
Beach
Redevelopment
Agency
,
Tax
Allocation,
2015
A,
Refunding,
AGMC
Insured,
5%,
2/01/40
...............
5,000,000
4,959,266
Tax
Allocation,
2015
A
2015
B,
Refunding,
AGMC
Insured,
5%,
2/01/44
.........
12,000,000
11,584,819
Miami-Dade
County
Expressway
Authority
,
Revenue,
2013
A,
Refunding,
5%,
7/01/29
...............................
10,000,000
10,011,544
Revenue,
2013
A,
Refunding,
5%,
7/01/32
...............................
6,375,000
6,380,267
Revenue,
A,
5%,
7/01/40
............................................
49,035,000
48,404,802
Miami-Dade
County
Health
Facilities
Authority
,
Variety
Children's
Hospital
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/01/47
...........................
3,500,000
2,893,953
Mid-Bay
Bridge
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
10/01/40
............
5,000,000
4,900,830
Middleton
Community
Development
District
A
,
Special
Assessment
,
2022
,
6.2
%
,
5/01/53
.........................................................
5,000,000
4,892,837
North
Sumter
County
Utility
Dependent
District
,
Revenue,
Senior
Lien,
2019,
BAM
Insured,
5%,
10/01/44
....................
4,000,000
4,105,117
Revenue,
Senior
Lien,
2019,
5%,
10/01/49
...............................
3,635,000
3,604,427
Revenue,
Senior
Lien,
2019,
5%,
10/01/54
...............................
7,000,000
6,874,683
Orange
County
Health
Facilities
Authority
,
Orlando
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
10/01/39
.....
6,000,000
6,051,782
Orlando
Health
Obligated
Group,
Revenue,
2019
A,
5%,
10/01/47
.............
10,000,000
9,524,845
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/41
............................................
5,000,000
5,187,421
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
8/01/47
............................................
14,000,000
14,524,779
Palm
Beach
County
Educational
Facilities
Authority
,
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/41
.......................................................
3,695,000
3,101,051
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/46
.......................................................
7,570,000
6,068,199
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
B,
4%,
11/15/41
.......................................................
500,000
407,056
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
B,
5%,
11/15/42
.......................................................
1,000,000
935,116
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
B,
5%,
5/15/41
....
5,000,000
4,364,117
Pine
Ridge
Plantation
Community
Development
District
,
Special
Assessment,
Senior
Lien,
2020
A-1,
Refunding,
AGMC
Insured,
2.625%,
5/01/34
........................................................
1,200,000
902,203
Special
Assessment,
Senior
Lien,
2020
A-1,
Refunding,
AGMC
Insured,
2.8%,
5/01/37
........................................................
995,000
716,653
Reunion
West
Community
Development
District
,
Special
Assessment
,
2022
,
Refunding
,
3
%
,
5/01/36
.............................................
1,250,000
935,710
River
Hall
Community
Development
District
,
Special
Assessment
,
2021
A-1
,
Refunding
,
3
%
,
5/01/36
......................................................
750,000
561,426
Sarasota
County
Health
Facilities
Authority
,
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/37
........................................................
2,350,000
2,109,024
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/42
........................................................
1,600,000
1,379,854
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/47
........................................................
2,450,000
2,036,035
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/33
..............
600,000
584,653
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/38
..............
1,025,000
965,775
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/48
..............
1,850,000
1,647,287
Sarasota
County
Public
Hospital
District
,
Obligated
Group,
Revenue,
2022,
4%,
7/01/52
............................
15,000,000
12,143,124
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)
Florida
(continued)
Sarasota
County
Public
Hospital
District,
(continued)
Sarasota
County
Public
Hospital
District
Obligated
Group,
Revenue,
2018,
4%,
7/01/48
........................................................
$
10,000,000
$
8,278,784
School
District
of
Broward
County
,
GO
,
2022
,
5
%
,
7/01/51
.....................
26,045,000
27,003,868
South
Broward
Hospital
District
,
South
Broward
Hospital
District
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/01/45
.........................................
20,715,000
20,835,969
South
Fork
East
Community
Development
District
,
Special
Assessment,
2021,
Refunding,
3%,
5/01/26
........................
100,000
92,983
Special
Assessment,
2021,
Refunding,
3%,
5/01/31
........................
250,000
209,259
Special
Assessment,
2021,
Refunding,
3%,
5/01/38
........................
600,000
431,051
St.
Johns
County
Industrial
Development
Authority
,
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/55
...
7,250,000
5,759,686
State
of
Florida
,
GO,
1999
D,
Refunding,
6%,
6/01/23
...................................
32,500,000
33,035,330
GO,
2016
C,
Refunding,
4%,
6/01/35
...................................
5,340,000
5,323,995
GO,
2016
F,
Refunding,
4%,
6/01/37
...................................
8,000,000
7,907,169
Tampa
Bay
Water
,
Revenue
,
2013
,
5
%
,
10/01/38
...........................
10,000,000
10,082,747
Tampa
Sports
Authority
,
Revenue
,
1995
,
NATL
Insured
,
6.1
%
,
10/01/26
...........
1,895,000
1,994,000
Tampa-Hillsborough
County
Expressway
Authority
,
Revenue
,
2017
,
5
%
,
7/01/47
....
10,000,000
10,099,924
Timber
Creek
Southwest
Community
Development
District
,
Special
Assessment,
2020,
4%,
6/15/40
.................................
1,000,000
833,336
Special
Assessment,
2020,
4%,
6/15/50
.................................
2,000,000
1,525,533
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
10/01/46
..........
5,000,000
5,210,881
Town
of
Palm
Beach
,
GO
,
2018
,
4
%
,
7/01/43
..............................
5,000,000
4,538,398
University
of
North
Florida
Financing
Corp.
(The)
,
Revenue
,
2016
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/35
..............................................
5,000,000
5,247,066
Volusia
County
Educational
Facility
Authority
,
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/15/42
1,500,000
1,518,005
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/15/47
3,500,000
3,515,594
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2020
A,
Refunding,
5%,
10/15/49
.......................................................
3,000,000
3,014,395
928,792,773
Georgia
4.0%
Atlanta
Development
Authority
(The)
,
City
of
Atlanta
Hotel
Motel
Tax,
Revenue,
2015
A-1,
5.25%,
7/01/44
............
3,000,000
3,057,813
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/24
..
6,385,000
6,426,302
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/25
..
6,955,000
7,031,385
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
5,000,000
5,076,271
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/27
..
5,000,000
5,095,045
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
15,040,000
12,764,278
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
15,800,000
14,482,664
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/40
...............
29,500,000
30,011,439
Water
&
Wastewater,
Revenue,
2018
A,
Refunding,
5%,
11/01/40
..............
4,655,000
4,808,425
Water
&
Wastewater,
Revenue,
2018
A,
Refunding,
5%,
11/01/41
..............
4,845,000
4,999,869
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
4/01/41
...............................
50,000
43,656
Coweta
County
Development
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/01/44
...............................
10,000,000
9,840,735
Development
Authority
for
Fulton
County
,
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
7/01/46
........................................................
6,840,000
6,662,512
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2019
A,
4%,
7/01/49
......
20,000,000
16,122,622
WellStar
Health
System
Obligated
Group,
Revenue,
2017,
5%,
4/01/47
.........
5,000,000
4,784,448
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)
Georgia
(continued)
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.,
Revenue,
2017,
Refunding,
4.125%,
11/01/45
.........
$
18,500,000
$
14,898,045
Oglethorpe
Power
Corp.,
Revenue,
2017
C,
Refunding,
4.125%,
11/01/45
.......
2,500,000
2,013,249
d
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
39,080,000
28,812,375
Fayette
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
7/01/39
........................................................
11,420,000
11,443,681
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2016
A,
5%,
7/01/46
......
15,000,000
14,610,771
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
5,000,000
4,622,298
Gainesville
&
Hall
County
Hospital
Authority
,
Northeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
2/15/45
.................
13,040,000
12,551,392
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
2,250,000
2,053,486
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/28
......................................
5,000,000
5,243,520
Revenue,
2019
A,
5%,
5/15/49
........................................
10,000,000
9,205,212
Revenue,
2021
C,
4%,
12/01/28
.......................................
4,500,000
4,237,514
c
Revenue,
2021
C,
Mandatory
Put,
4%,
12/01/28
...........................
16,500,000
15,458,744
c
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/29
...........................
14,500,000
13,371,074
c
Revenue,
2022
B,
Mandatory
Put,
5%,
6/01/29
............................
10,000,000
9,816,174
c,d
Revenue,
144A,
2022
C,
Mandatory
Put,
4%,
11/01/27
......................
49,155,000
45,415,779
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2019
A,
Refunding,
5%,
1/01/44
...............................
4,580,000
4,416,265
Revenue,
2021
A,
Refunding,
5%,
1/01/63
...............................
7,920,000
7,033,882
Revenue,
2022
A,
5.5%,
7/01/63
......................................
2,500,000
2,415,593
Private
Colleges
&
Universities
Authority
,
Emory
University
,
Revenue
,
2013
A
,
5
%
,
10/01/43
........................................................
10,000,000
10,034,601
Savannah
Hospital
Authority
,
St.
Joseph's/Candler
Health
System
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/43
...............................
15,000,000
12,878,596
361,739,715
Hawaii
1.1%
City
&
County
Honolulu
,
Wastewater
System
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
7/01/47
.........................................................
25,000,000
25,699,792
State
of
Hawaii
,
Airports
System,
Revenue,
2018
A,
5%,
7/01/43
...........................
25,805,000
24,896,406
Airports
System,
Revenue,
2018
A,
5%,
7/01/48
...........................
25,450,000
24,252,203
Airports
System,
Revenue,
2020
A,
4%,
7/01/45
...........................
8,125,000
6,677,621
State
of
Hawaii
Department
of
Budget
&
Finance
,
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
Refunding,
3.2%,
7/01/39
..........
10,000,000
7,488,717
Hawaiian
Electric
Co.,
Inc.,
Revenue,
2019,
3.5%,
10/01/49
..................
17,035,000
11,663,386
100,678,125
Idaho
0.1%
Idaho
Health
Facilities
Authority
,
St.
Luke's
Health
System
Ltd.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/36
........................................................
4,200,000
4,222,577
St.
Luke's
Health
System
Ltd.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/37
........................................................
3,500,000
3,512,696
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
ID,
4%,
12/01/43
.........
6,000,000
5,136,433
12,871,706
Illinois
5.7%
Chicago
Midway
International
Airport
,
Revenue,
1998
C,
Refunding,
AGMC,
NATL
RE
Insured,
5.5%,
1/01/24
.........
6,825,000
6,928,237
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)
Illinois
(continued)
Chicago
Midway
International
Airport,
(continued)
Revenue,
Second
Lien,
2016
B,
Refunding,
5%,
1/01/46
....................
$
18,420,000
$
17,995,793
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien,
2016
D,
5.25%,
1/01/42
............................
10,000,000
10,154,231
Revenue,
Senior
Lien,
2016
D,
5%,
1/01/47
..............................
18,000,000
17,635,192
Revenue,
Senior
Lien,
2020
A,
Refunding,
4%,
1/01/35
.....................
13,015,000
12,065,453
Revenue,
Senior
Lien,
2022
A,
5%,
1/01/55
..............................
36,500,000
33,840,764
Chicago
Park
District
,
GO,
2020
C,
BAM
Insured,
4%,
1/01/41
.................................
1,400,000
1,175,564
GO,
2020
C,
BAM
Insured,
4%,
1/01/42
.................................
4,300,000
3,577,229
GO,
2020
D,
BAM
Insured,
4%,
1/01/37
.................................
1,000,000
870,837
GO,
2020
D,
BAM
Insured,
4%,
1/01/38
.................................
1,000,000
859,062
GO,
2020
D,
BAM
Insured,
4%,
1/01/39
.................................
1,000,000
850,384
GO,
2020
F-2,
Refunding,
4%,
1/01/36
..................................
1,250,000
1,089,574
GO,
2020
F-2,
Refunding,
5%,
1/01/37
..................................
2,000,000
2,031,595
GO,
2020
F-2,
Refunding,
5%,
1/01/39
..................................
1,625,000
1,642,970
GO,
2020
F-2,
Refunding,
5%,
1/01/40
..................................
1,625,000
1,639,424
Chicago
Transit
Authority
Sales
Tax
Receipts
Fund
,
Revenue,
Second
Lien
,
2022
A
,
Refunding
,
5
%
,
12/01/57
............................................
15,000,000
13,939,554
City
of
Chicago
,
Revenue
,
1998
,
NATL
Insured
,
ETM,
5.75
%
,
1/01/23
............
4,755,000
4,774,419
City
of
Galesburg
,
Knox
College
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
10/01/46
......
7,000,000
5,707,689
City
of
Granite
City
,
Waste
Management
of
Illinois,
Inc.
,
Revenue
,
2002
,
1.25
%
,
5/01/27
.........................................................
5,750,000
4,926,752
Illinois
Finance
Authority
,
Bradley
University,
Revenue,
2021
A,
Refunding,
4%,
8/01/46
................
2,250,000
1,740,544
Bradley
University,
Revenue,
2021
A,
Refunding,
4%,
8/01/51
................
4,650,000
3,477,809
Carle
Foundation
Obligated
Group
(The),
Revenue,
2016
A,
Refunding,
5%,
2/15/45
20,000,000
19,687,960
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/41
.........
3,480,000
2,544,379
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
3.25%,
5/15/27
........................................................
2,280,000
1,946,438
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/41
..............................
750,000
617,449
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/51
..............................
1,000,000
758,512
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/56
..............................
750,000
550,204
Mercy
Health
Corp.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
12/01/46
...
30,000,000
28,195,584
Macon
County
School
District
No.
61
Decatur
,
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/40
.......................
3,700,000
3,383,508
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/45
.......................
3,125,000
2,715,686
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
6,240,000
6,713,702
Revenue,
2002
A,
AGMC,
NATL
Insured,
Zero
Cpn
.,
12/15/40
................
6,000,000
2,345,807
Revenue,
2022
A,
Refunding,
4%,
12/15/42
..............................
500,000
405,568
Revenue,
2022
A,
Refunding,
4%,
12/15/47
..............................
365,000
281,689
Revenue,
2022
A,
Refunding,
4%,
6/15/52
...............................
36,000,000
26,852,710
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
3,533,381
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn
.,
12/01/26
..................................
7,700,000
6,459,596
St.
Clair
County
School
District
No.
189
East
St.
Louis
,
GO
,
2008
,
Refunding
,
AMBAC
Insured
,
5.125
%
,
1/01/28
............................................
7,135,000
6,912,820
State
of
Illinois
,
GO,
2016,
Refunding,
5%,
2/01/26
.....................................
4,215,000
4,247,318
GO,
2016,
5%,
11/01/35
.............................................
1,000,000
971,148
GO,
2017
A,
5%,
12/01/35
...........................................
2,000,000
1,941,523
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)
Illinois
(continued)
State
of
Illinois,
(continued)
GO,
2017
A,
5%,
12/01/36
...........................................
$
6,070,000
$
5,877,941
GO,
2017
A,
4.25%,
12/01/40
.........................................
3,150,000
2,648,144
GO,
2017
D,
3.25%,
11/01/26
.........................................
1,750,000
1,652,703
GO,
2017
D,
5%,
11/01/28
...........................................
6,425,000
6,436,242
GO,
2018
A,
5%,
5/01/34
............................................
3,010,000
2,949,652
GO,
2019
B,
4%,
11/01/34
...........................................
6,410,000
5,579,922
GO,
2019
C,
4%,
11/01/40
...........................................
2,500,000
2,032,930
GO,
2019
C,
4%,
11/01/43
...........................................
4,190,000
3,270,663
GO,
2020,
5.5%,
5/01/30
............................................
14,215,000
14,662,012
GO,
2020,
5.75%,
5/01/45
...........................................
7,965,000
7,989,859
GO,
2020
C,
4%,
10/01/37
...........................................
3,685,000
3,108,358
GO,
2020
C,
4%,
10/01/38
...........................................
9,750,000
8,112,413
GO,
2020
C,
4%,
10/01/39
...........................................
4,585,000
3,770,010
GO,
2020
C,
4%,
10/01/41
...........................................
3,010,000
2,409,926
GO,
2021
A,
5%,
12/01/27
...........................................
10,000,000
10,037,396
GO,
2021
A,
5%,
3/01/33
............................................
5,000,000
4,942,935
GO,
2021
A,
4%,
3/01/38
............................................
5,000,000
4,184,025
GO,
2021
B,
4%,
12/01/34
...........................................
5,000,000
4,348,062
GO,
2022
B,
5%,
10/01/30
...........................................
14,650,000
14,647,461
GO,
2022
B,
5%,
10/01/31
...........................................
26,500,000
26,391,395
GO,
2022
C,
5%,
10/01/38
...........................................
15,000,000
14,350,091
GO,
2022
C,
5.5%,
10/01/40
.........................................
18,050,000
18,104,163
GO,
2022
C,
5.5%,
10/01/41
.........................................
10,000,000
9,963,100
GO,
2022
C,
5.5%,
10/01/44
.........................................
16,000,000
15,694,514
Sales
Tax,
Revenue,
2016
C,
Refunding,
4%,
6/15/26
......................
5,000,000
4,966,854
Tri-County
River
Valley
Development
Authority
,
Cedars
of
Lebanon
Affordable
LLC,
Revenue,
2021
A,
Pre-Refunded,
3.75%,
12/01/36
.......................................................
10,150,000
10,195,393
Cedars
of
Lebanon
Affordable
LLC,
Revenue,
2021
B,
Pre-Refunded,
5.75%,
12/01/36
.......................................................
790,000
809,641
d
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
5,730,729
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
144A,
2020
A,
Refunding,
4.5%,
12/01/50
.........................................
34,795,000
24,911,484
Village
of
Bolingbrook
,
GO
,
2013
A
,
Pre-Refunded
,
Zero
Cpn
.,
1/01/36
...........
19,000,000
9,666,816
517,432,892
Indiana
3.2%
City
of
Indianapolis
,
Department
of
Public
Utilities
Water
System
,
Revenue,
First
Lien
,
2016
B
,
Refunding
,
5
%
,
10/01/37
......................................
15,000,000
15,677,036
City
of
Whiting
,
BP
Products
North
America,
Inc.
,
Revenue
,
2021
,
3
%
,
11/01/51
.....
10,000,000
6,535,943
Hammond
Multi-School
Building
Corp.
,
Hammond
School
City
,
Revenue
,
2018
,
5
%
,
7/15/38
.........................................................
3,000,000
3,059,065
Indiana
Finance
Authority
,
BHI
Senior
Living
Obligated
Group,
Revenue,
2016
A,
5.25%,
11/15/46
.........
11,955,000
11,137,150
BHI
Senior
Living
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
............
15,000,000
13,068,858
BHI
Senior
Living
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/41
...
7,250,000
5,542,349
Citizens
Wastewater
of
Westfield
LLC,
Revenue,
2019
A,
Refunding,
5%,
10/01/48
16,665,000
17,023,158
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012
A,
4%,
10/01/42
...............
24,690,000
22,142,590
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2014
A,
5%,
10/01/39
...............
30,000,000
30,528,420
East
End
Crossing
Partners
LLC,
Revenue,
2013
A,
Pre-Refunded,
5.25%,
1/01/51
20,000,000
20,142,606
Greencroft
Goshen
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/43
..
7,000,000
5,250,524
Greencroft
Goshen
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/51
..
3,000,000
2,091,630
f
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/37
..
5,000,000
3,830,283
Indianapolis
Power
&
Light
Co.,
Revenue,
2021
A,
Refunding,
1.4%,
8/01/29
.....
5,000,000
4,003,704
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)
Indiana
(continued)
Indiana
Finance
Authority,
(continued)
Marion
County
Capital
Improvement
Board,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/37
........................................................
$
10,000,000
$
10,366,738
Ohio
Valley
Electric
Corp.,
Revenue,
2010
B,
2.5%,
11/01/30
.................
3,925,000
3,216,325
University
of
Evansville,
Revenue,
2022
A,
Refunding,
5.25%,
9/01/57
..........
10,000,000
8,482,592
Indiana
Municipal
Power
Agency
,
Revenue,
2016
A,
Refunding,
4%,
1/01/42
...............................
5,860,000
5,234,737
Revenue,
2016
A,
Refunding,
5%,
1/01/42
...............................
21,290,000
21,858,626
Indiana
University
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
6/01/45
..................
8,525,000
7,604,170
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
2017,
Refunding,
5%,
1/01/40
.................................
23,225,000
24,296,836
Revenue,
2019
A,
4%,
2/01/44
........................................
3,000,000
2,714,963
Revenue,
2019
A,
5%,
2/01/49
........................................
41,970,000
42,761,831
Northern
Indiana
Commuter
Transportation
District
,
Revenue
,
2016
,
5
%
,
7/01/41
...
6,000,000
6,115,333
292,685,467
Iowa
0.9%
Iowa
Finance
Authority
,
Iowa
Fertilizer
Co.
LLC,
Revenue,
2022,
Refunding,
5%,
12/01/50
.............
8,000,000
6,939,192
Iowa
Health
System
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
2/15/48
..
7,500,000
7,332,636
Iowa
Tobacco
Settlement
Authority
,
Revenue,
2021
A-2,
1,
Refunding,
4%,
6/01/49
............................
20,730,000
16,146,982
Revenue,
2021
B-1,
2,
Refunding,
4%,
6/01/49
...........................
25,285,000
23,101,198
c
PEFA,
Inc.
,
Revenue
,
2019
,
Mandatory
Put
,
5
%
,
9/01/26
......................
24,500,000
24,483,752
78,003,760
Kansas
0.4%
Wyandotte
County-Kansas
City
Unified
Government
,
Utility
System,
Revenue,
2014
A,
Refunding,
5%,
9/01/44
....................
3,000,000
3,038,590
Utility
System,
Revenue,
2016
A,
5%,
9/01/45
............................
10,000,000
10,162,809
Utility
System,
Revenue,
2016
C,
Refunding,
5%,
9/01/41
...................
5,000,000
5,117,316
Utility
System,
Revenue,
2016
C,
Refunding,
5%,
9/01/46
...................
16,565,000
16,848,348
35,167,063
Kentucky
1.8%
Campbell
Kenton
&
Boone
Counties
Sanitation
District
No.
1
,
Revenue
,
2019
,
Refunding
,
4
%
,
8/01/34
.............................................
4,310,000
4,254,786
City
of
Hazard
,
Appalachian
Regional
Healthcare
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
3
%
,
7/01/46
.............................................
2,000,000
1,291,422
City
of
Owensboro
,
Electric
Light
&
Power
System,
Revenue,
2017,
Refunding,
4%,
1/01/27
.........
1,250,000
1,264,044
Water,
Revenue,
2018,
Refunding,
BAM
Insured,
4%,
9/15/45
................
5,000,000
4,305,551
County
of
Boyle
,
Centre
College
of
Kentucky
,
Revenue
,
2017
,
Refunding
,
5
%
,
6/01/37
2,000,000
2,026,339
County
of
Carroll
,
Kentucky
Utilities
Co.,
Revenue,
2008
A,
Refunding,
2%,
2/01/32
..............
3,000,000
2,231,099
c
Kentucky
Utilities
Co.,
Revenue,
2016
A,
Refunding,
Mandatory
Put,
1.55%,
9/01/26
2,000,000
1,748,548
County
of
Warren
,
Bowling
Green-Warren
County
Community
Hospital
Corp.
,
Revenue
,
2012
A
,
5
%
,
10/01/33
...............................................
1,000,000
1,000,080
Eastern
Kentucky
University
,
Revenue
,
2018
A
,
4
%
,
10/01/37
..................
1,540,000
1,465,957
Fayette
County
School
District
Finance
Corp.
,
Fayette
County
School
District,
Revenue,
2015
D,
5%,
8/01/34
................
1,985,000
2,057,045
Fayette
County
School
District,
Revenue,
2018
A,
4%,
5/01/38
................
1,000,000
929,893
Hopkins
County
School
District
Finance
Corp.
,
Revenue
,
2021
,
2
%
,
2/01/41
.......
2,340,000
1,430,711
Kentucky
Bond
Development
Corp.
,
Revenue,
2018
A,
5%,
9/01/48
........................................
2,500,000
2,550,680
Centre
College
of
Kentucky,
Revenue,
2021,
4%,
6/01/51
....................
1,350,000
1,037,491
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)
Kentucky
(continued)
Kentucky
Bond
Development
Corp.,
(continued)
Transylvania
University,
Revenue,
2019
B,
4%,
3/01/49
.....................
$
2,500,000
$
1,959,608
Transylvania
University,
Revenue,
2021
A,
Refunding,
4%,
3/01/46
.............
735,000
585,833
Transylvania
University,
Revenue,
2021
A,
Refunding,
4%,
3/01/49
.............
330,000
258,668
Kentucky
Economic
Development
Finance
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-2
,
Refunding
,
5
%
,
8/01/49
........................
21,200,000
19,702,203
Kentucky
Municipal
Power
Agency
,
Revenue,
2015
A,
Refunding,
NATL
Insured,
5%,
9/01/42
....................
10,000,000
10,345,855
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/34
....................
5,000,000
5,250,518
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/35
....................
7,750,000
8,126,980
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/36
....................
3,000,000
3,141,552
Revenue,
2019
A,
Refunding,
4%,
9/01/45
...............................
2,000,000
1,682,487
c
Kentucky
Public
Energy
Authority
,
Revenue
,
2019
C
,
Mandatory
Put
,
4
%
,
2/01/28
...
37,000,000
34,987,910
Kentucky
Rural
Water
Finance
Corp.
,
Revenue
,
2001
A
,
5
%
,
2/01/26
.............
255,000
255,403
Kentucky
State
Property
&
Building
Commission
,
Kentucky
Finance
and
Administration
Cabinet,
Revenue,
5%,
4/01/38
...........
2,500,000
2,579,823
Kentucky
Finance
and
Administration
Cabinet,
Revenue,
A,
Refunding,
5%,
8/01/34
3,500,000
3,602,992
Kentucky
Turnpike
Authority
,
Kentucky
Transportation
Cabinet,
Revenue,
2015
A,
Refunding,
5%,
7/01/33
.....
3,000,000
3,099,685
Kentucky
Transportation
Cabinet,
Revenue,
2017
A,
Refunding,
5%,
7/01/36
.....
550,000
573,621
Kentucky
Transportation
Cabinet,
Revenue,
2017
A,
Refunding,
5%,
7/01/37
.....
700,000
728,681
Lewis
County
School
District
Finance
Corp.
,
Revenue
,
2021
,
2
%
,
2/01/41
.........
2,000,000
1,266,983
Louisville
and
Jefferson
County
,
Metropolitan
Sewer
District,
Revenue,
2017
A,
4%,
5/15/48
..................
2,750,000
2,330,944
Metropolitan
Sewer
District,
Revenue,
2018
A,
Refunding,
4%,
5/15/38
..........
5,000,000
4,652,504
Louisville/Jefferson
County
Metropolitan
Government
,
Bellarmine
University,
Inc.,
Revenue,
2015,
Refunding,
5%,
5/01/31
............
2,000,000
1,943,210
Bellarmine
University,
Inc.,
Revenue,
2017
A,
Refunding,
5%,
5/01/36
..........
2,715,000
2,491,038
Louisville
Gas
and
Electric
Co.,
Revenue,
2003
A,
Refunding,
2%,
10/01/33
......
4,000,000
2,924,118
Norton
Healthcare
Obligated
Group,
Revenue,
2020
A,
4%,
10/01/39
...........
4,000,000
3,516,827
Morehead
State
University
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
10/01/28
...........
1,910,000
1,949,667
Paducah
Electric
Plant
Board
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/34
........................................................
5,700,000
6,016,767
Scott
County
School
District
Finance
Corp.
,
Scott
County
Board
of
Education
,
Revenue
,
2018
,
4
%
,
6/01/38
.........................................
1,615,000
1,479,300
Shelby
County
School
District
Finance
Corp.
,
Shelby
County
Public
School
District
,
Revenue
,
2018
,
4
%
,
8/01/38
.........................................
3,465,000
3,225,821
University
of
Kentucky
,
Revenue,
2014
A,
4%,
4/01/44
........................................
2,250,000
1,977,234
Revenue,
2018
A,
4%,
10/01/32
.......................................
4,000,000
4,017,334
University
of
Louisville
,
Revenue
,
2016
D
,
5
%
,
3/01/30
.......................
4,140,000
4,339,498
166,606,710
Louisiana
2.7%
City
of
Shreveport
,
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
10,000,000
10,311,440
Water
&
Sewer,
Revenue,
Junior
Lien,
2019
B,
AGMC
Insured,
4%,
12/01/44
.....
6,535,000
5,640,636
East
Baton
Rouge
Sewerage
Commission
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
2/01/45
7,065,000
6,342,794
Lafayette
Consolidated
Government
,
Revenue
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/30
........................................................
5,000,000
5,159,502
d
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
10,000,000
6,908,239
Parish
of
Assumption,
Revenue,
144A,
2021,
3.875%,
11/01/45
...............
4,880,000
3,339,704
Parish
of
St.
Bernard,
Revenue,
144A,
2021,
4%,
11/01/45
...................
2,000,000
1,398,230
Parish
of
St.
Charles,
Revenue,
144A,
2022,
4.5%,
11/01/47
.................
9,455,000
6,939,075
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)
Louisiana
(continued)
d
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority,
(continued)
Parish
of
St.
John
the
Baptist,
Revenue,
144A,
2019,
3.9%,
11/01/44
...........
$
2,350,000
$
1,668,160
Parish
of
St.
Tammany
LA
GOMESA,
Revenue,
144A,
2020,
3.875%,
11/01/45
....
6,100,000
4,258,574
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
10/01/43
...
3,877,088
2,714,656
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.25%,
10/01/48
6,350,000
4,315,527
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.5%,
10/01/53
.
8,000,000
5,354,994
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
5%,
10/01/61
...
10,000,000
6,705,329
Louisiana
Public
Facilities
Authority
,
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/47
..............................................
35,000,000
33,856,116
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/51
..............................................
15,000,000
14,457,816
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/56
..............................................
11,295,000
10,774,788
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2002
B,
ETM,
5.75%,
5/15/23
10,000,000
10,130,511
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/46
27,500,000
27,120,594
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
3%,
5/15/47
..............................................
9,925,000
6,622,882
d
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.375%,
1/01/40
2,500,000
2,293,643
d
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
14,000,000
12,434,716
Tulane
University,
Revenue,
2020
A,
Refunding,
4%,
4/01/40
.................
3,750,000
3,287,612
Tulane
University,
Revenue,
2020
A,
Refunding,
5%,
4/01/45
.................
3,500,000
3,477,648
Louisiana
Stadium
&
Exposition
District
,
Revenue
,
2021
,
4
%
,
7/03/23
............
3,325,000
3,323,288
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017
B
,
5
%
,
1/01/48
........................................
4,000,000
3,776,514
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
Revenue
,
2019
,
4
%
,
8/01/44
.........................................................
6,000,000
5,398,067
c
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B-2
,
Refunding
,
Mandatory
Put
,
2.375
%
,
7/01/26
......................................
7,500,000
6,833,929
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2020
E,
5%,
4/01/44
........................................
8,110,000
7,728,488
Revenue,
2020
E,
5%,
4/01/47
........................................
10,000,000
9,451,408
Terrebonne
Levee
&
Conservation
District
,
Sales
Tax,
Revenue,
2020
B,
Refunding,
4%,
6/01/40
.......................
5,065,000
4,516,594
Sales
Tax,
Revenue,
2020
B,
Refunding,
4%,
6/01/41
.......................
5,165,000
4,559,879
241,101,353
Maine
0.2%
Maine
Health
&
Higher
Educational
Facilities
Authority
,
MaineHealth
Obligated
Group
,
Revenue
,
2018
A
,
5
%
,
7/01/43
........................................
3,000,000
2,957,444
Maine
Turnpike
Authority
,
Revenue
,
2018
,
5
%
,
7/01/47
.......................
15,500,000
15,978,866
18,936,310
Maryland
1.2%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/39
.....................
10,000,000
10,151,979
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/44
.....................
10,000,000
10,111,258
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/39
.........................
9,430,000
9,573,316
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/44
.........................
5,500,000
5,561,192
Maryland
Economic
Development
Corp.
,
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2020,
4.25%,
7/01/50
1,000,000
781,918
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2020,
5%,
7/01/56
.
1,415,000
1,246,307
Purple
Line
Transit
Partners
LLC,
Revenue,
2022
A,
5%,
11/12/28
.............
10,000,000
10,237,104
Purple
Line
Transit
Partners
LLC,
Revenue,
2022
B,
5.25%,
6/30/52
...........
10,000,000
9,729,517
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
12,500,000
12,256,493
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)
Maryland
(continued)
Maryland
Health
&
Higher
Educational
Facilities
Authority,
(continued)
Adventist
Healthcare
Obligated
Group,
Revenue,
2021
B,
4%,
1/01/51
..........
$
23,000,000
$
17,584,252
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.....
3,000,000
2,614,596
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/45
..............
5,465,000
5,358,046
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/33
...............
3,205,000
3,312,794
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/34
...............
3,420,000
3,196,398
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/35
...............
3,555,000
3,297,759
105,012,929
Massachusetts
2.1%
Commonwealth
of
Massachusetts
,
GO,
2016
G,
4%,
9/01/42
............................................
20,000,000
18,123,012
GO,
2017
B,
5%,
4/01/47
............................................
12,335,000
12,585,359
GO,
2019
A,
5.25%,
1/01/44
..........................................
10,000,000
10,452,823
Transportation
Fund,
Revenue,
2017
A,
5%,
6/01/47
.......................
25,055,000
25,580,929
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
15,000,000
15,367,128
Massachusetts
Bay
Transportation
Authority
,
Sales
Tax
,
Revenue
,
2005
A
,
5
%
,
7/01/28
10,000,000
10,838,980
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999
A,
5.75%,
8/01/29
.....................................
450,000
450,842
Revenue,
2002
A,
5%,
8/01/32
........................................
225,000
225,258
Massachusetts
Development
Finance
Agency
,
Beth
Israel
Lahey
Health
Obligated
Group,
Revenue,
2018
J-2,
5%,
7/01/53
......
5,000,000
4,814,498
Dana-Farber
Cancer
Institute
Obligated
Group,
Revenue,
2016
N,
5%,
12/01/41
..
10,135,000
10,141,006
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
.......
15,415,000
13,350,225
Southcoast
Health
System
Obligated
Group,
Revenue,
2021
G,
Refunding,
5%,
7/01/34
........................................................
625,000
639,613
Springfield
College,
Revenue,
2021
A,
4%,
6/01/56
........................
3,000,000
2,260,814
d
Waste
Management
of
Massachusetts,
Inc.,
Revenue,
144A,
2002,
1.25%,
5/01/27
3,250,000
2,784,686
Worcester
Polytechnic
Institute,
Revenue,
2019,
5%,
9/01/59
.................
10,000,000
9,827,218
Massachusetts
Educational
Financing
Authority
,
Revenue,
2017
B,
Refunding,
4.25%,
7/01/46
.............................
2,000,000
1,810,846
Revenue,
2021
C,
3%,
7/01/51
........................................
3,200,000
1,919,752
Massachusetts
Port
Authority
,
Revenue,
2021
E,
5%,
7/01/51
........................................
24,870,000
24,186,642
Bosfuel
Corp.,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
....................
7,500,000
7,141,905
Massachusetts
School
Building
Authority
,
Revenue
,
2018
A
,
4
%
,
2/15/43
..........
10,750,000
9,630,569
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien
,
2014-1
,
5
%
,
11/01/39
........................................................
8,185,000
8,306,904
190,439,009
Michigan
1.3%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006
B,
NATL
Insured,
5%,
7/01/36
.......................................
10,000
10,014
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
2003
A,
NATL
Insured,
5%,
7/01/34
.........................................
10,000
10,016
Michigan
Finance
Authority
,
BHSH
System
Obligated
Group,
Revenue,
2016
A,
5%,
11/01/44
..............
20,925,000
20,482,281
Bronson
Health
Care
Group
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
5/15/54
........................................................
20,000,000
18,985,034
Henry
Ford
Health
System
Obligated
Group,
Revenue,
2019
A,
5%,
11/15/48
.....
25,920,000
24,939,882
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/36
...
1,000,000
887,558
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/37
...
2,000,000
1,754,320
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/38
...
1,500,000
1,301,505
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/39
...
1,500,000
1,282,492
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/40
...
1,000,000
844,002
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)
Michigan
(continued)
Michigan
Finance
Authority,
(continued)
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/49
...
$
4,000,000
$
3,061,192
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B-1,
2,
Refunding,
5%,
6/01/49
..
3,635,000
3,384,850
Michigan
State
Building
Authority
,
Revenue
,
2013
1-A
,
Refunding
,
5.25
%
,
10/15/44
..
20,655,000
20,871,968
Michigan
Strategic
Fund
,
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
6/30/48
....
10,025,000
8,745,372
United
Methodist
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/49
...........................................
7,000,000
5,833,275
Pontiac
School
District
,
GO
,
2020
,
4
%
,
5/01/50
.............................
8,665,000
7,494,538
119,888,299
Mississippi
1.0%
Medical
Center
Educational
Building
Corp.
,
Mississippi
State
Institutions
of
Higher
Learning
,
Revenue
,
2017
,
Refunding
,
5
%
,
6/01/47
.........................
25,000,000
25,042,522
Mississippi
Business
Finance
Corp.
,
System
Energy
Resources,
Inc.
,
Revenue
,
2021
,
Refunding
,
2.375
%
,
6/01/44
..........................................
7,000,000
4,185,147
Mississippi
Development
Bank
,
City
of
Jackson
Water
&
Sewer
System,
Revenue,
2013,
AGMC
Insured,
6.875%,
12/01/40
.......................................................
3,400,000
3,474,661
d
County
of
Jackson,
Revenue,
144A,
2021,
3.625%,
11/01/36
.................
3,000,000
2,277,081
Mississippi
Home
Corp.
,
d
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
3.5%,
6/01/33
.
584,263
453,108
d
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4%,
6/01/46
..
1,000,000
655,787
d
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4.5%,
6/01/62
.
17,965,177
11,181,991
d
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
B-5,
5.2%,
6/01/36
5,600,000
4,395,254
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.15%,
6/01/46
..................................................
3,464,038
2,331,689
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.65%,
6/01/62
..................................................
5,381,952
3,452,152
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/36
...
6,350,000
6,209,981
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/46
...
30,000,000
27,038,628
90,698,001
Missouri
0.8%
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
BJC
Healthcare
Obligated
Group,
Revenue,
2015
A,
4%,
1/01/45
..............
20,005,000
16,706,753
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
4,000,000
3,579,893
Mercy
Health,
Revenue,
2014
F,
5%,
11/15/45
............................
25,000,000
24,406,155
SSM
Health
Care
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/48
............
7,500,000
7,249,264
Kansas
City
Industrial
Development
Authority
,
City
of
Kansas
City
Airport
,
Revenue
,
2019
B
,
AGMC
Insured
,
5
%
,
3/01/49
...................................
20,000,000
19,050,556
St.
Louis
Municipal
Finance
Corp.
,
City
of
St.
Louis
,
Revenue
,
2020
,
AGMC
Insured
,
5
%
,
10/01/45
.....................................................
5,000,000
4,881,443
75,874,064
Montana
0.2%
Montana
Facility
Finance
Authority
,
Billings
Clinic
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
8/15/48
.......
10,000,000
9,677,786
Kalispell
Regional
Medical
Center
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
7/01/43
....................................................
6,440,000
6,197,577
15,875,363
Nebraska
0.8%
c
Central
Plains
Energy
Project
,
Revenue
,
2022-1
,
Mandatory
Put
,
5
%
,
10/01/29
.....
15,000,000
14,721,157
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)
Nebraska
(continued)
Douglas
County
Hospital
Authority
No.
2
,
Children's
Hospital
Obligated
Group
,
Revenue
,
2017
A
,
5
%
,
11/15/47
.......................................
$
10,000,000
$
9,766,682
Gretna
Public
Schools
,
GO
,
2022
,
4
%
,
12/15/47
............................
12,935,000
11,268,116
Omaha
Public
Power
District
Nebraska
City
Station
Unit
2
,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/42
.............................
10,000,000
10,222,190
Revenue,
2016
A,
Refunding,
5%,
2/01/49
...............................
10,000,000
10,195,139
Public
Power
Generation
Agency
,
Revenue,
2016
A,
Refunding,
5%,
1/01/39
...............................
7,340,000
7,501,017
Revenue,
2016
A,
Refunding,
5%,
1/01/41
...............................
5,140,000
5,261,500
68,935,801
Nevada
0.3%
Carson
City
,
Carson
Tahoe
Regional
Healthcare
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
9/01/47
.............................................
2,775,000
2,654,301
City
of
Henderson
,
GO
,
2020
A-1
,
4
%
,
6/01/45
.............................
10,000,000
8,825,475
Clark
County
School
District
,
GO,
2020
A,
AGMC
Insured,
4%,
6/15/36
................................
750,000
727,704
GO,
2020
A,
AGMC
Insured,
4%,
6/15/37
................................
875,000
830,226
GO,
2020
A,
AGMC
Insured,
4%,
6/15/38
................................
850,000
794,876
GO,
2020
A,
AGMC
Insured,
4%,
6/15/39
................................
1,000,000
918,329
GO,
2020
A,
AGMC
Insured,
4%,
6/15/40
................................
725,000
653,583
Las
Vegas
Convention
&
Visitors
Authority
,
County
of
Clark
&
City
of
Las
Vegas
Combined
Room
Tax
,
Revenue
,
2018
B
,
5
%
,
7/01/43
.......................
10,000,000
10,136,402
25,540,896
New
Hampshire
0.2%
New
Hampshire
Health
and
Education
Facilities
Authority
Act
,
Concord
Hospital
Obligated
Group,
Revenue,
2017,
5%,
10/01/47
.............
5,000,000
4,742,659
Elliot
Hospital
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
10/01/38
.......
4,000,000
3,889,036
University
System
of
New
Hampshire,
Revenue,
2015,
Refunding,
5%,
7/01/45
...
10,350,000
10,667,373
19,299,068
New
Jersey
3.0%
New
Jersey
Economic
Development
Authority
,
New
Jersey
Transit
Corp.,
Revenue,
2020
A,
5%,
11/01/44
...................
18,450,000
17,754,601
New
Jersey
Transit
Corp.,
Revenue,
2022
A,
5%,
11/01/52
...................
10,000,000
9,502,768
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/33
6,135,000
6,244,449
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
5%,
6/15/36
11,850,000
11,855,827
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2018
EEE,
4.625%,
6/15/48
........................................................
2,000,000
1,785,339
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
2019
LLL,
4%,
6/15/44
2,725,000
2,254,451
State
of
New
Jersey
Department
of
the
Treasury,
Revenue,
AAA,
5%,
6/15/41
....
26,000,000
25,466,061
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/34
..............................................
4,600,000
4,640,356
State
of
New
Jersey
Division
of
Property
Management
&
Construction,
Revenue,
2018
C,
5%,
6/15/35
..............................................
4,800,000
4,820,905
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey
,
Revenue
,
2016
B
,
5
%
,
9/01/36
......................................................
14,000,000
14,001,368
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
2021
C,
Refunding,
3.25%,
12/01/51
...........................
2,000,000
1,282,358
Revenue,
Senior
Lien,
2018
A,
4%,
12/01/33
.............................
1,765,000
1,747,462
Revenue,
Senior
Lien,
2020
B,
3.5%,
12/01/39
............................
8,000,000
7,510,735
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2009
A,
Zero
Cpn
.,
12/15/36
..................................
500,000
238,426
Revenue,
2009
A,
Zero
Cpn
.,
12/15/39
..................................
71,750,000
28,225,926
Revenue,
2010
A,
Zero
Cpn
.,
12/15/40
..................................
4,750,000
1,748,982
Revenue,
2013
AA,
5%,
6/15/44
.......................................
1,000,000
962,600
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)
New
Jersey
(continued)
New
Jersey
Transportation
Trust
Fund
Authority,
(continued)
Revenue,
2014
BB-1,
5%,
6/15/31
.....................................
$
3,000,000
$
3,081,853
Revenue,
2015
AA,
5%,
6/15/45
.......................................
15,000,000
14,414,738
Revenue,
2018
A,
Refunding,
5%,
12/15/36
..............................
7,000,000
6,996,611
Revenue,
2019
A,
Refunding,
5%,
12/15/39
..............................
785,000
772,142
Revenue,
2019
BB,
5%,
6/15/33
.......................................
3,250,000
3,307,980
Revenue,
2019
BB,
4%,
6/15/38
.......................................
2,000,000
1,759,858
Revenue,
2020
AA,
5%,
6/15/35
.......................................
3,000,000
3,019,424
Revenue,
2020
AA,
5%,
6/15/37
.......................................
5,220,000
5,200,258
Revenue,
2020
AA,
5%,
6/15/38
.......................................
1,000,000
986,189
Revenue,
2020
AA,
5%,
6/15/39
.......................................
4,240,000
4,171,834
Revenue,
2020
AA,
5%,
6/15/40
.......................................
2,500,000
2,456,556
Revenue,
2020
AA,
5%,
6/15/45
.......................................
20,435,000
19,637,677
Revenue,
2020
AA,
4%,
6/15/50
.......................................
39,000,000
31,204,138
Revenue,
2021
A,
Refunding,
5%,
6/15/31
...............................
7,250,000
7,514,520
Revenue,
2021
A,
Refunding,
5%,
6/15/33
...............................
1,250,000
1,279,771
Revenue,
2022
BB,
4%,
6/15/46
.......................................
17,000,000
13,876,174
New
Jersey
Turnpike
Authority
,
Revenue
,
2015
E
,
5
%
,
1/01/45
.................
11,475,000
11,603,715
271,326,052
New
Mexico
0.4%
City
of
Farmington
,
Public
Service
Co.
of
New
Mexico
,
Revenue
,
2016
B
,
Refunding
,
2.15
%
,
4/01/33
...................................................
21,800,000
16,480,937
New
Mexico
Hospital
Equipment
Loan
Council
,
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
8/01/46
....................................................
15,000,000
15,131,082
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/33
.
1,000,000
899,373
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/35
.
1,000,000
859,454
33,370,846
New
York
9.6%
Buffalo
&
Erie
County
Industrial
Land
Development
Corp.
,
D'Youville
College
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/01/40
......................................
2,200,000
1,905,296
City
of
New
York
,
GO,
2002
D,
5.5%,
6/01/24
..........................................
180,000
180,417
GO,
2003
F,
5.25%,
1/15/23
..........................................
5,000
5,009
GO,
2018
E-1,
5%,
3/01/40
..........................................
3,215,000
3,271,826
GO,
2018
E-1,
5%,
3/01/41
..........................................
11,355,000
11,522,537
GO,
2022
D-1,
5.5%,
5/01/46
.........................................
2,500,000
2,689,247
GO,
2023
A-1,
4%,
9/01/46
..........................................
6,000,000
5,180,198
Long
Island
Power
Authority
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
9/01/46
..........
13,000,000
13,194,953
Metropolitan
Transportation
Authority
,
Revenue,
2012
A-1,
5%,
11/15/40
.....................................
30,000,000
28,630,026
Revenue,
2013
A,
5%,
11/15/38
.......................................
11,800,000
11,399,828
Revenue,
2013
B,
5%,
11/15/43
.......................................
8,000,000
7,518,714
Revenue,
2015
A,
5%,
11/15/40
.......................................
7,000,000
6,680,339
Revenue,
2015
D-1,
Refunding,
5%,
11/15/32
............................
1,250,000
1,251,038
Revenue,
2016
A-1,
5.25%,
11/15/56
...................................
15,000,000
14,088,543
Revenue,
2016
B,
Refunding,
5%,
11/15/28
..............................
2,885,000
2,915,709
Revenue,
2016
D,
Refunding,
5%,
11/15/31
..............................
1,180,000
1,184,661
Revenue,
2017
A-2,
Refunding,
5%,
11/15/26
.............................
4,425,000
4,534,951
Revenue,
2017
C-1,
Refunding,
5%,
11/15/33
............................
1,780,000
1,774,574
Revenue,
2017
C-2,
Refunding,
Zero
Cpn
.,
11/15/29
.......................
2,090,000
1,529,553
Revenue,
2019
A-2,
5%,
11/15/45
.....................................
46,270,000
43,039,641
Revenue,
2020
A-1,
4%,
11/15/45
.....................................
10,000,000
7,893,564
Revenue,
2020
A-1,
5%,
11/15/47
.....................................
24,300,000
22,193,467
Revenue,
2020
D,
5%,
11/15/44
.......................................
50,000,000
46,728,765
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)
New
York
(continued)
Metropolitan
Transportation
Authority,
(continued)
Revenue,
2020
D,
4%,
11/15/50
.......................................
$
20,000,000
$
15,240,950
Revenue,
2021
A-2,
4%,
11/15/42
.....................................
6,000,000
4,881,833
New
York
City
Industrial
Development
Agency
,
Yankee
Stadium
LLC
,
Revenue
,
2020
A
,
Refunding
,
AGMC
Insured
,
4
%
,
3/01/45
.................................
6,000,000
4,962,259
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System,
Revenue,
2013
DD,
5%,
6/15/35
....................
30,705,000
30,898,036
Water
&
Sewer
System,
Revenue,
2015
HH,
Refunding,
5%,
6/15/39
...........
15,000,000
15,317,760
Water
&
Sewer
System,
Revenue,
2017
CC,
Refunding,
5%,
6/15/46
...........
32,500,000
32,783,400
Water
&
Sewer
System,
Revenue,
2019
DD-1,
5.25%,
6/15/49
................
12,000,000
12,461,645
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2014
A-1,
5%,
11/01/34
......................
15,000,000
15,194,952
Future
Tax
Secured,
Revenue,
2016
E-1,
5%,
2/01/38
......................
10,000,000
10,179,978
Future
Tax
Secured,
Revenue,
2017
F-1,
5%,
5/01/42
......................
11,095,000
11,271,291
Future
Tax
Secured,
Revenue,
2018
C-2,
5%,
5/01/38
......................
11,945,000
12,286,269
Future
Tax
Secured,
Revenue,
2018
C-3,
4%,
5/01/43
......................
19,800,000
17,461,382
Future
Tax
Secured,
Revenue,
2020
B-1,
4%,
11/01/47
.....................
10,000,000
8,534,890
New
York
Liberty
Development
Corp.
,
Revenue,
2021
A,
Refunding,
3%,
11/15/51
..............................
10,000,000
6,235,122
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
40,000,000
41,403,512
Goldman
Sachs
Headquarters
LLC,
Revenue,
2007,
5.5%,
10/01/37
...........
24,995,000
26,306,533
New
York
State
Dormitory
Authority
,
State
of
New
York
Personal
Income
Tax,
Revenue,
2015
B,
5%,
2/15/40
.........
20,000,000
20,260,852
State
of
New
York
Personal
Income
Tax,
Revenue,
2017
B,
Refunding,
5%,
2/15/42
24,410,000
24,797,541
State
of
New
York
Personal
Income
Tax,
Revenue,
2020
A,
Refunding,
4%,
3/15/48
5,000,000
4,267,253
State
of
New
York
Sales
Tax,
Revenue,
2017
A,
5%,
3/15/43
.................
10,000,000
10,207,173
State
of
New
York
Sales
Tax,
Revenue,
2018
A,
5%,
3/15/39
.................
13,270,000
13,701,142
State
of
New
York
Sales
Tax,
Revenue,
2018
C,
Refunding,
5%,
3/15/37
........
25,000,000
26,065,628
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/44
........
16,000,000
16,372,990
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
5%,
3/15/46
.................
73,125,000
74,643,909
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Pre-Refunded,
5%,
3/15/46
......
5,000
5,421
New
York
State
Thruway
Authority
,
Revenue,
2019
B,
4%,
1/01/50
........................................
20,000,000
16,605,438
Revenue,
Junior
Lien,
2016
A,
5%,
1/01/51
..............................
9,000,000
8,846,245
State
of
New
York
Personal
Income
Tax,
Revenue,
2022
A,
Refunding,
4%,
3/15/44
7,000,000
6,068,703
State
of
New
York
Personal
Income
Tax,
Revenue,
2022
A,
Refunding,
4%,
3/15/51
12,115,000
10,088,385
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2020
A
,
4
%
,
3/15/45
........................................
36,905,000
31,933,660
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.,
Revenue,
2018,
5%,
1/01/32
..........................
5,000,000
4,903,893
Delta
Air
Lines,
Inc.,
Revenue,
2018,
5%,
1/01/36
..........................
5,560,000
5,351,968
Delta
Air
Lines,
Inc.,
Revenue,
2020,
4%,
10/01/30
.........................
21,460,000
20,124,255
Delta
Air
Lines,
Inc.,
Revenue,
2020,
5%,
10/01/40
.........................
9,360,000
8,830,573
JFK
International
Air
Terminal
LLC,
Revenue,
2022,
5%,
12/01/33
.............
7,500,000
7,248,521
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
179,
5%,
12/01/38
.........................................
20,000,000
20,264,986
Revenue,
218,
4%,
11/01/47
.........................................
13,500,000
11,064,430
Triborough
Bridge
&
Tunnel
Authority
,
Revenue,
2022
A,
4%,
11/15/52
.......................................
10,000,000
8,131,556
Metropolitan
Transportation
Authority
Payroll
Mobility
Tax,
Revenue,
Senior
Lien,
2022
A,
Refunding,
5%,
5/15/57
.....................................
8,375,000
8,486,383
863,003,573
North
Carolina
0.9%
Greater
Asheville
Regional
Airport
Authority
,
Revenue
,
2022
A
,
AGMC
Insured
,
5.5
%
,
7/01/52
.........................................................
5,000,000
5,050,325
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)
North
Carolina
(continued)
North
Carolina
Eastern
Municipal
Power
Agency
,
Revenue
,
1993
B
,
ETM,
6.25
%
,
1/01/23
.........................................................
$
39,030,000
$
39,225,447
North
Carolina
Medical
Care
Commission
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
10/01/50
.......................................
2,200,000
2,000,231
North
Carolina
Turnpike
Authority
,
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
1/01/33
......................
25,000,000
15,286,597
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
1/01/34
......................
15,000,000
8,666,747
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn
.,
1/01/35
......................
15,215,000
8,228,045
78,457,392
North
Dakota
0.6%
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/33
..
2,000,000
2,020,919
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/34
..
3,500,000
3,523,806
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/35
..
1,815,000
1,587,158
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/37
..
2,950,000
2,523,327
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/38
..
3,400,000
2,867,995
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/40
..
3,375,000
2,769,208
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/41
..
1,875,000
1,514,810
State
Board
of
Higher
Education
of
the
State
of
North
Dakota
,
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/44
............................
10,000,000
8,865,757
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/50
............................
9,620,000
8,257,515
University
of
North
Dakota
,
COP,
2018
A,
5%,
4/01/48
...........................................
5,500,000
5,617,791
COP,
2018
A,
5%,
4/01/57
...........................................
10,000,000
10,197,012
49,745,298
Ohio
2.5%
Akron
Bath
Copley
Joint
Township
Hospital
District
,
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/37
3,915,000
3,244,471
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
5,700,000
4,672,265
American
Municipal
Power,
Inc.
,
Revenue,
2015
A,
Refunding,
5%,
2/15/39
...............................
5,000,000
5,037,151
Revenue,
2015
A,
Refunding,
5%,
2/15/42
...............................
2,500,000
2,518,575
Revenue,
2016
A,
Refunding,
5%,
2/15/46
...............................
20,000,000
20,138,350
Revenue,
2019
C,
Refunding,
4%,
2/15/39
...............................
18,795,000
16,614,320
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien
,
2020
A-2
,
1
,
Refunding
,
4
%
,
6/01/48
.............................................
4,505,000
3,572,199
Cleveland-Cuyahoga
County
Port
Authority
,
County
of
Cuyahoga
,
Revenue
,
2013
,
5
%
,
7/01/37
.........................................................
6,000,000
6,492,435
County
of
Butler
,
UC
Health
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/45
........................................................
7,500,000
7,302,167
County
of
Franklin
,
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/40
..........
10,410,000
8,544,931
OhioHealth
Obligated
Group,
Revenue,
2015,
5%,
5/15/40
...................
10,000,000
9,964,255
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
10,000,000
9,711,713
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017
A-OH,
5%,
12/01/47
.......
10,800,000
10,444,416
County
of
Hamilton
,
UC
Health
Obligated
Group
,
Revenue
,
2020
,
5
%
,
9/15/50
.....
7,500,000
7,167,524
Northeast
Ohio
Regional
Sewer
District
,
Revenue,
2017,
Refunding,
4%,
11/15/38
................................
10,000,000
9,342,839
Revenue,
2017,
Refunding,
4%,
11/15/43
................................
10,000,000
8,970,217
Ohio
Higher
Educational
Facility
Commission
,
Case
Western
Reserve
University,
Revenue,
2021
A,
Refunding,
4%,
12/01/44
....
6,815,000
5,900,874
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
1,350,000
1,225,776
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,185,000
1,055,515
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,530,000
2,203,781
Ohio
State
University
(The)
,
Revenue
,
2013
A
,
5
%
,
6/01/38
....................
10,000,000
10,046,798
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)
Ohio
(continued)
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
2018
A,
5%,
2/15/43
........................................
$
20,000,000
$
20,662,616
Revenue,
Junior
Lien,
2013
A-4,
Zero
Cpn
.,
2/15/35
........................
35,000,000
37,805,488
State
of
Ohio
,
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2017
A,
Refunding,
4%,
1/01/36
........................................................
6,500,000
6,111,758
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2019
B,
4%,
1/01/46
..
10,000,000
8,697,511
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
640,000
546,573
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/40
855,000
714,559
228,709,077
Oklahoma
0.1%
Edmond
Public
Works
Authority
,
Revenue,
2017,
5%,
7/01/42
.........................................
4,000,000
4,162,435
Revenue,
2017,
5%,
7/01/47
.........................................
4,500,000
4,653,292
McGee
Creek
Authority
,
Revenue
,
1992
,
NATL
Insured
,
6
%
,
1/01/23
.............
40,000
40,131
Norman
Regional
Hospital
Authority
,
Norman
Regional
Hospital
Authority
Obligated
Group
,
Revenue
,
2019
,
5
%
,
9/01/45
....................................
3,500,000
3,288,514
12,144,372
Oregon
1.1%
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/50
...
12,210,000
11,806,554
Medford
Hospital
Facilities
Authority
,
Asante
Health
System
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
8/15/50
.......................................
4,000,000
3,839,676
Oregon
City
School
District
No.
62
,
GO
,
2018
B
,
Refunding
,
5
%
,
6/15/49
..........
20,000,000
20,613,584
Oregon
Health
&
Science
University
,
Oregon
Health
&
Science
University
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/44
.........................
1,685,000
1,490,360
Port
of
Portland
,
Airport,
Revenue,
Twenty-Eight,
5%,
7/01/52
.............................
13,755,000
13,132,299
Airport,
Revenue,
Twenty-Five
B,
5%,
7/01/44
............................
2,450,000
2,385,960
Airport,
Revenue,
Twenty-Seven
A,
5%,
7/01/38
...........................
10,000,000
9,925,282
Airport,
Revenue,
Twenty-Seven
A,
5%,
7/01/45
...........................
10,000,000
9,725,004
State
of
Oregon
,
Housing
&
Community
Services
Department,
Revenue,
2018
A,
3.6%,
1/01/33
....
5,080,000
4,758,053
Housing
&
Community
Services
Department,
Revenue,
2018
D,
3.8%,
7/01/34
....
4,695,000
4,560,319
University
of
Oregon
,
Revenue
,
2020
A
,
5
%
,
4/01/50
.........................
15,000,000
15,386,009
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn
.,
6/15/41
.......................................
5,725,000
2,220,210
GO,
2018
A,
Zero
Cpn
.,
6/15/42
.......................................
5,900,000
2,148,897
GO,
2018
A,
Zero
Cpn
.,
6/15/43
.......................................
5,500,000
1,884,943
103,877,150
Pennsylvania
1.4%
Allegheny
County
Sanitary
Authority
,
Revenue
,
2013
,
BAM
Insured
,
5.25
%
,
12/01/44
5,000,000
5,061,340
City
of
Philadelphia
,
Airport
,
Revenue
,
2020
C
,
Refunding
,
4
%
,
7/01/45
...........
1,500,000
1,214,179
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development
,
Revenue
,
2015
A
,
5
%
,
6/01/33
..........
4,550,000
4,695,781
Commonwealth
of
Pennsylvania
,
GO,
First
Series
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
8/15/26
......................................................
20,805,000
21,631,587
Delaware
County
Regional
Water
Quality
Control
Authority
,
Revenue
,
2016
,
5
%
,
11/01/41
........................................................
5,000,000
5,112,562
Huntingdon
County
General
Authority
,
Juniata
College
,
Revenue
,
2021
TT-3
,
Refunding
,
5
%
,
10/01/51
............................................
5,000,000
4,596,160
Lancaster
Industrial
Development
Authority
,
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/31
........
440,000
394,968
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/37
........
345,000
286,911
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/56
........
3,300,000
2,317,573
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)
Pennsylvania
(continued)
Lehigh
County
General
Purpose
Authority
,
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/52
....
$
13,785,000
$
10,640,785
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/57
....
5,000,000
3,731,672
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
477,781
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,000,000
919,219
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018
A,
Refunding,
5%,
12/01/48
.......................................................
9,000,000
8,368,393
Pennsylvania
Economic
Development
Financing
Authority
,
UPMC
Obligated
Group
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
2/15/40
...............................
5,240,000
4,469,396
Pennsylvania
Turnpike
Commission
,
Revenue,
2009
C,
AGMC
Insured,
6.25%,
6/01/33
.........................
5,000,000
5,453,917
Revenue,
2020
B,
5%,
12/01/50
.......................................
8,000,000
7,815,584
Philadelphia
Gas
Works
Co.
,
Revenue
,
Sixteenth
A
,
AGMC
Insured
,
4
%
,
8/01/45
...
4,000,000
3,477,610
School
District
of
Philadelphia
(The)
,
GO,
2016
F,
Refunding,
5%,
9/01/33
...................................
6,415,000
6,620,372
GO,
2016
F,
Refunding,
5%,
9/01/36
...................................
4,090,000
4,183,066
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The)
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/32
...........................
10,000,000
10,281,199
Westmoreland
County
Municipal
Authority
,
Revenue
,
2016
,
Refunding
,
BAM
Insured
,
5
%
,
8/15/42
......................................................
17,205,000
17,476,667
129,226,722
Rhode
Island
0.1%
Rhode
Island
Health
and
Educational
Building
Corp.
,
Lifespan
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
5/15/39
.................................
5,500,000
5,184,364
Rhode
Island
Housing
and
Mortgage
Finance
Corp.
,
Revenue,
10A,
6.5%,
4/01/27
.........................................
130,000
130,225
Revenue,
15A,
6.85%,
10/01/24
.......................................
120,000
120,262
Rhode
Island
Student
Loan
Authority
,
Revenue,
Senior
Lien,
2021
A,
5%,
12/01/27
.............................
1,000,000
1,045,133
Revenue,
Senior
Lien,
2021
A,
5%,
12/01/29
.............................
2,025,000
2,129,805
8,609,789
South
Carolina
1.5%
City
of
Rock
Hill
,
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/41
......................
7,690,000
7,853,453
Combined
Utility
System,
Revenue,
2016,
5%,
1/01/47
......................
5,000,000
5,081,944
County
of
Greenwood
,
Self
Regional
Healthcare,
Revenue,
2017,
Refunding,
4%,
10/01/37
............
8,465,000
7,735,139
Self
Regional
Healthcare,
Revenue,
2017,
Refunding,
4%,
10/01/39
............
1,195,000
1,065,438
d
County
of
Richland
,
Village
at
Sandhill
Improvement
District
,
Special
Assessment
,
144A,
2021
,
Refunding
,
3.75
%
,
11/01/36
................................
1,270,000
938,389
South
Carolina
Jobs-Economic
Development
Authority
,
d
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
23,630,000
17,495,642
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
22,470,000
16,619,783
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-2,
4.75%,
12/01/26
...........
2,115,000
1,887,812
d
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn
.,
6/01/37
17,900,000
10,803,951
d
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-2,
Zero
Cpn
.,
6/01/52
32,000,000
17,940,813
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/43
......
10,000,000
9,711,110
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/48
......
15,000,000
14,257,212
South
Carolina
Ports
Authority
,
Revenue,
2018,
5%,
7/01/48
.........................................
10,000,000
9,775,310
Revenue,
2019
B,
5%,
7/01/54
........................................
10,365,000
10,006,502
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)
South
Carolina
(continued)
Spartanburg
Regional
Health
Services
District
,
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/37
........................................
$
1,415,000
$
1,286,743
Spartanburg
Regional
Health
Services
District
Obligated
Group,
Revenue,
2020
A,
AGMC
Insured,
4%,
4/15/39
........................................
1,410,000
1,250,617
133,709,858
South
Dakota
0.9%
County
of
Lincoln
,
Augustana
College
Association
(The)
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
8/01/61
......................................................
4,855,000
3,250,462
Huron
School
District
No.
2-2
,
GO
,
2013
,
Refunding
,
5
%
,
6/15/39
...............
4,000,000
4,078,131
South
Dakota
Health
&
Educational
Facilities
Authority
,
Revenue,
2015
A,
Refunding,
5%,
8/01/38
...............................
3,475,000
3,571,776
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.........
10,000,000
8,715,320
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/46
.........
36,050,000
35,114,553
Monument
Health
Obligated
Group,
Revenue,
2017,
4%,
9/01/37
..............
10,920,000
9,786,517
Monument
Health
Obligated
Group,
Revenue,
2017,
5%,
9/01/40
..............
10,000,000
9,928,512
South
Dakota
State
Building
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
6/01/42
...
5,450,000
5,641,303
80,086,574
Tennessee
3.1%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CDFI
Phase
I
LLC
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
................................
1,000,000
961,305
City
of
Chattanooga
,
Electric
,
Revenue
,
2015
C
,
Refunding
,
5
%
,
9/01/40
..........
2,750,000
2,803,512
City
of
Germantown
,
GO,
2017,
4%,
8/01/43
.............................................
2,330,000
2,158,366
GO,
2017,
4%,
8/01/45
.............................................
2,525,000
2,302,090
City
of
Jackson
,
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
5%,
4/01/36
......
3,885,000
3,798,045
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
Pre-Refunded,
5%,
4/01/36
........................................................
115,000
119,110
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
4%,
4/01/41
......
24,265,000
20,125,617
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
Pre-Refunded,
4%,
4/01/41
........................................................
735,000
743,876
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2018
A,
5%,
4/01/41
....
2,255,000
2,128,169
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2018
A,
Pre-Refunded,
5%,
4/01/41
........................................................
115,000
124,044
City
of
Knoxville
,
Wastewater
System
,
Revenue
,
2015
A
,
Refunding
,
4
%
,
4/01/42
...
5,000,000
4,587,516
City
of
Memphis
,
Electric
System,
Revenue,
2020
A,
3%,
12/01/42
..........................
2,470,000
1,828,289
Gas,
Revenue,
2017,
4%,
12/01/36
....................................
1,000,000
974,432
Gas,
Revenue,
2020,
3%,
12/01/42
....................................
1,000,000
746,167
City
of
Portland
,
Water
&
Sewer
,
Revenue
,
2020
,
AGMC
Insured
,
3
%
,
4/01/45
......
1,775,000
1,244,108
County
of
Coffee
,
GO
,
2019
,
Refunding
,
4
%
,
6/01/44
........................
2,760,000
2,433,473
County
of
Hamilton
,
GO
,
2020
A
,
Refunding
,
4
%
,
1/01/51
.....................
1,000,000
883,836
County
of
Maury
,
GO
,
2015
,
Refunding
,
4
%
,
4/01/34
.........................
1,775,000
1,739,671
County
of
Wilson
,
GO
,
2017
A
,
4
%
,
4/01/42
................................
5,000,000
4,587,516
Hallsdale
-Powell
Utility
District
,
Revenue
,
2019
,
Refunding
,
4
%
,
4/01/39
..........
1,380,000
1,263,865
Harpeth
Valley
Utilities
District
of
Davidson
and
Williamson
Counties
,
Revenue,
2014,
5%,
9/01/44
.........................................
4,400,000
4,444,754
Revenue,
2020,
4%,
9/01/50
.........................................
500,000
431,401
Industrial
Development
Board
of
The
City
of
Kingsport
Tennessee
(The)
,
Model
City
II
LP
,
Revenue
,
2009
,
GNMA
Insured
,
5.5
%
,
7/20/39
.........................
2,995,000
2,995,345
Johnson
City
Health
&
Educational
Facilities
Board
,
Ballad
Health
Obligated
Group
,
Revenue
,
1998
,
NATL
Insured
,
ETM,
5.25
%
,
7/01/28
.......................
8,500,000
8,917,404
Knox
Chapman
Utility
District
of
Knox
County
,
Revenue
,
2012
,
Refunding
,
4
%
,
1/01/40
4,000,000
3,636,572
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)
Tennessee
(continued)
Knox
County
Health
Educational
&
Housing
Facility
Board
,
Covenant
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/01/42
....
$
18,000,000
$
17,576,429
Covenant
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/01/47
....
22,815,000
22,046,568
University
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
9/01/47
3,000,000
2,830,083
University
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
4/01/36
2,250,000
2,253,092
Madison
Suburban
Utility
District
,
Revenue
,
2021
,
3
%
,
2/01/45
.................
1,000,000
690,367
Memphis-Shelby
County
Airport
Authority
,
Revenue,
2018,
5%,
7/01/43
.........................................
10,000,000
9,551,066
Revenue,
2018,
5%,
7/01/47
.........................................
11,000,000
10,436,308
Revenue,
2021
A,
5%,
7/01/40
........................................
3,000,000
2,897,129
Metropolitan
Government
Nashville
&
Davidson
County
Health
&
Educational
Facilities
Board
,
Blakeford
at
Green
Hills
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/45
.......
3,500,000
2,683,395
Blakeford
at
Green
Hills
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/55
.......
9,015,000
6,447,186
Trevecca
Nazarene
University,
Revenue,
2021
B,
4%,
10/01/41
...............
1,050,000
832,279
Trevecca
Nazarene
University,
Revenue,
2021
B,
4%,
10/01/51
...............
6,860,000
4,968,684
Vanderbilt
University
Medical
Center
Obligated
Group,
Revenue,
2016
A,
5%,
7/01/40
........................................................
5,000,000
4,890,229
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Electric,
Revenue,
2014
A,
5%,
5/15/39
.................................
4,000,000
4,046,192
Sports
Authority,
Revenue,
2013
A,
Pre-Refunded,
5%,
8/01/38
...............
3,000,000
3,040,510
Water
&
Sewer,
Revenue,
2017
A,
5%,
7/01/46
...........................
12,855,000
13,142,978
Water
&
Sewer,
Revenue,
2017
B,
5%,
7/01/42
...........................
21,645,000
22,236,672
Water
&
Sewer,
Revenue,
2017
B,
5%,
7/01/46
...........................
15,925,000
16,281,752
Metropolitan
Nashville
Airport
Authority
(The)
,
Revenue,
2019
B,
5%,
7/01/44
........................................
20,000,000
19,201,120
Revenue,
2019
B,
4%,
7/01/49
........................................
3,000,000
2,371,638
Revenue,
2019
B,
5%,
7/01/49
........................................
10,500,000
9,984,352
Shelby
County
Health
Educational
&
Housing
Facilities
Board
,
Methodist
Le
Bonheur
Healthcare
Obligated
Group,
Revenue,
2017
A,
5%,
5/01/36
4,000,000
4,086,140
Rhodes
College,
Revenue,
2015,
5%,
8/01/45
............................
1,700,000
1,728,717
Rhodes
College,
Revenue,
2017,
Refunding,
4%,
8/01/40
...................
3,000,000
2,772,879
South
Blount
County
Utility
District
,
Revenue
,
2019
,
Refunding
,
3
%
,
12/01/39
......
2,015,000
1,535,068
Tennessee
Housing
Development
Agency
,
Revenue,
2013
1-C,
4%,
7/01/43
......................................
805,000
745,818
Revenue,
2017-3,
3.65%,
7/01/47
.....................................
625,000
595,215
Revenue,
2018-2,
Refunding,
3.85%,
7/01/42
.............................
1,025,000
975,764
Revenue,
2018-4,
Refunding,
4%,
7/01/43
...............................
5,745,000
5,593,914
West
Knox
Utility
District
,
Revenue
,
2016
,
Refunding
,
5
%
,
6/01/41
..............
1,000,000
1,010,815
West
Wilson
Utility
District
of
Wilson
County
Tennessee
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/40
......................................................
1,545,000
1,572,957
White
House
Utility
District
,
Revenue
,
2020
,
Refunding
,
3
%
,
1/01/34
.............
820,000
708,077
Williamson
County
HB
&
TS
Utility
District
,
Revenue
,
2020
,
Refunding
,
3
%
,
9/01/44
.
1,200,000
851,236
Wilson
County
Tenth
Special
School
District
,
GO
,
2019
,
5
%
,
4/01/44
.............
2,500,000
2,581,247
279,144,359
Texas
9.7%
Abilene
Convention
Center
Hotel
Development
Corp.
,
City
of
Abilene
Abilene
Convention
Center
,
Revenue,
First
Lien
,
2021
A
,
4
%
,
10/01/50
................
5,510,000
4,433,836
Aubrey
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
4
%
,
2/15/52
........
7,500,000
6,489,884
Central
Texas
Turnpike
System
,
Revenue,
2015
B,
Refunding,
5%,
8/15/37
...............................
10,000,000
10,188,069
Revenue,
2015
C,
Refunding,
5%,
8/15/37
...............................
5,000,000
5,033,888
Revenue,
2015
C,
Refunding,
5%,
8/15/42
...............................
20,000,000
20,068,018
City
of
Arlington
,
Special
Tax,
Senior
Lien
,
2018
A
,
AGMC
Insured
,
4
%
,
2/15/44
.....
20,000,000
17,001,586
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)
City
of
Austin
,
Electric
Utility,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
...................
$
10,000,000
$
10,155,099
Water
&
Wastewater
System,
Revenue,
2013
A,
Refunding,
5%,
11/15/38
.......
20,000,000
20,192,636
d
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.625%,
11/01/39
................................................
1,405,000
1,258,766
d
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.75%,
11/01/48
.................................................
2,450,000
2,112,282
d
City
of
Celina
,
Sutton
Fields
II
Public
Improvement
District
,
Special
Assessment
,
144A,
2019
,
4.25
%
,
9/01/49
...............................................
3,065,000
2,409,106
City
of
Corpus
Christi
,
Utility
System,
Revenue,
Junior
Lien,
2013,
Pre-Refunded,
5%,
7/15/38
.........
6,000,000
6,072,465
Utility
System,
Revenue,
Junior
Lien,
2013,
Pre-Refunded,
5%,
7/15/43
.........
7,000,000
7,084,542
Utility
System,
Revenue,
Junior
Lien,
2015
A,
5%,
7/15/40
...................
13,200,000
13,506,761
City
of
Laredo
,
Waterworks
&
Sewer
System
,
Revenue
,
2016
,
Refunding
,
4
%
,
3/01/41
9,690,000
8,718,468
City
of
Leander
,
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/38
..................................................
1,275,000
948,378
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/44
..................................................
1,460,000
991,603
d
City
of
Royse
City
,
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2017,
5%,
9/15/48
........................................................
2,700,000
2,410,641
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.375%,
9/15/39
........................................................
610,000
533,560
Waterscape
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.5%,
9/15/48
........................................................
1,260,000
1,047,545
City
of
San
Marcos
,
Electric
Utility
System
,
Revenue
,
2013
,
Pre-Refunded
,
BAM
Insured
,
5
%
,
11/01/33
..............................................
6,300,000
6,300,000
Clifton
Higher
Education
Finance
Corp.
,
International
Leadership
of
Texas,
Inc.,
Revenue,
2022,
PSF
Guaranty,
4%,
8/15/42
2,150,000
1,949,406
International
Leadership
of
Texas,
Inc.,
Revenue,
2022,
PSF
Guaranty,
5%,
8/15/47
11,500,000
11,779,122
Community
Independent
School
District
,
GO
,
2022
B
,
PSF
Guaranty
,
4
%
,
2/15/50
...
2,750,000
2,424,632
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel,
Revenue,
First
Lien,
2021
A,
4%,
10/01/50
.....
1,640,000
1,198,938
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/32
....
90,000
96,046
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/33
....
100,000
106,040
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/34
....
100,000
105,630
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/35
....
85,000
89,492
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/36
....
85,000
89,381
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/41
....
600,000
529,402
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/46
....
700,000
595,667
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/50
....
650,000
543,688
Dallas
Fort
Worth
International
Airport
,
Revenue
,
2013
D
,
Refunding
,
5.25
%
,
11/01/32
10,000,000
10,122,261
Del
Valle
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
4
%
,
6/15/47
......
7,500,000
6,696,296
d
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
33,800,000
23,320,878
Forney
Independent
School
District
,
GO
,
2015
,
Refunding
,
PSF
Guaranty
,
5
%
,
8/15/37
15,000,000
15,527,337
Frisco
Independent
School
District
,
GO
,
2016
,
PSF
Guaranty
,
5
%
,
8/15/46
........
20,000,000
20,711,916
Goose
Creek
Consolidated
Independent
School
District
,
GO
,
2013
,
Pre-Refunded
,
PSF
Guaranty
,
5
%
,
2/15/38
..............................................
45,000
45,239
Grand
Parkway
Transportation
Corp.
,
Revenue,
2013
B,
Zero
Cpn
.,
10/01/45
..................................
10,000,000
10,182,674
Revenue,
2018
A,
5%,
10/01/48
.......................................
7,720,000
7,885,336
Gulf
Coast
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2003
B
,
1.5
%
,
5/01/28
....
2,000,000
1,673,164
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Houston
Methodist
Hospital
Obligated
Group
,
Revenue
,
2015
,
5
%
,
12/01/45
...........................
30,000,000
29,524,179
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)
Texas
(continued)
Harris
County
Toll
Road
Authority
(The)
,
Revenue,
Senior
Lien
,
2018
A
,
Refunding
,
5
%
,
8/15/43
.........................................................
$
6,000,000
$
6,218,887
Harris
County-Houston
Sports
Authority
,
Revenue,
Senior
Lien,
2020
A,
Refunding,
AGMC
Insured,
3.125%,
11/15/56
.....
5,000,000
3,195,293
Revenue,
Third
Lien,
2004
A-3,
NATL
Insured,
Zero
Cpn
.,
11/15/37
............
6,300,000
2,625,824
Hidalgo
County
Regional
Mobility
Authority
,
Revenue,
Senior
Lien
,
2013
,
Pre-
Refunded
,
5
%
,
12/01/43
.............................................
5,000,000
5,090,192
Houston
Higher
Education
Finance
Corp.
,
Houston
Baptist
University
,
Revenue
,
2021
,
4
%
,
10/01/51
.....................................................
3,800,000
2,801,943
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO,
2021,
2.375%,
9/01/31
..........................................
165,000
126,934
GO,
2021,
2.375%,
9/01/32
..........................................
170,000
127,276
GO,
2021,
2.375%,
9/01/33
..........................................
170,000
123,915
GO,
2021,
2.5%,
9/01/34
............................................
180,000
129,668
GO,
2021,
2.5%,
9/01/36
............................................
370,000
254,754
GO,
2021,
2.625%,
9/01/38
..........................................
385,000
259,323
GO,
2021,
3%,
9/01/41
.............................................
375,000
252,658
GO,
2021,
3%,
9/01/46
.............................................
750,000
467,883
GO,
2021,
3%,
9/01/51
.............................................
1,265,000
756,262
d
Lakeside
Place
PFC
,
Torrey
Chase
Apartments
LP
,
Revenue
,
144A,
2021
,
3.48
%
,
12/15/39
........................................................
12,625,000
8,858,989
Lamar
Consolidated
Independent
School
District
,
GO
,
2018
,
PSF
Guaranty
,
5
%
,
2/15/43
.........................................................
30,000,000
31,071,759
Lower
Colorado
River
Authority
,
LCRA
Transmission
Services
Corp.,
Revenue,
2013
A,
Refunding,
5%,
5/15/36
...
10,000,000
10,069,006
LCRA
Transmission
Services
Corp.,
Revenue,
2018,
Refunding,
5%,
5/15/43
.....
10,000,000
10,124,424
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
NCCD-Cain
Hall
Redevelopment
I
LLC,
Revenue,
2016
A-1,
5%,
4/01/46
........
6,000,000
6,126,123
NCCD-College
Station
Properties
LLC,
Revenue,
A,
5%,
7/01/47
..............
10,000,000
8,500,000
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/39
.......................................................
5,650,000
4,995,930
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/49
.......................................................
11,470,000
9,543,794
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/54
.......................................................
230,000
187,672
Westminster
Manor,
Revenue,
2021,
4%,
11/01/49
.........................
14,400,000
10,743,304
Newark
Higher
Education
Finance
Corp.
,
Abilene
Christian
University
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
4/01/57
...........................................
5,000,000
3,791,222
North
East
Texas
Regional
Mobility
Authority
,
Revenue,
Senior
Lien
,
2016
A
,
5
%
,
1/01/41
.........................................................
16,750,000
15,661,769
North
Harris
County
Regional
Water
Authority
,
Revenue,
Senior
Lien,
2016,
Refunding,
4%,
12/15/41
......................
10,000,000
9,065,929
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
12/15/46
......................
18,460,000
18,892,381
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/35
.........
10,000,000
10,147,103
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/38
.........
10,000,000
10,072,874
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/43
.
20,000,000
20,051,484
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/48
.
33,500,000
33,575,653
North
Texas
Tollway
System,
Revenue,
First
Tier,
I,
Pre-Refunded,
6.5%,
1/01/43
..
25,000,000
26,591,990
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2017
B,
Refunding,
5%,
1/01/48
10,000,000
9,888,619
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2018,
Refunding,
5%,
1/01/48
25,250,000
24,968,763
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn
.,
9/01/37
....
7,500,000
3,460,308
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn
.,
9/01/43
....
7,500,000
2,205,419
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
6.75%,
9/01/45
......
25,000,000
30,890,478
Port
Freeport
,
Revenue,
Senior
Lien
,
2019
A
,
5
%
,
6/01/49
.....................
4,000,000
4,020,490
San
Antonio
Education
Facilities
Corp.
,
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/46
......
13,705,000
10,637,737
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)
Texas
(continued)
San
Antonio
Education
Facilities
Corp.,
(continued)
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/51
......
$
3,765,000
$
2,824,604
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/54
......
1,035,000
755,987
San
Antonio
Public
Facilities
Corp.
,
City
of
San
Antonio
,
Revenue
,
2012
,
Refunding
,
4
%
,
9/15/42
......................................................
36,500,000
31,459,357
San
Antonio
Water
System
,
Revenue,
Junior
Lien,
2018
A,
Refunding,
5%,
5/15/43
......................
12,000,000
12,343,376
Revenue,
Junior
Lien,
2018
A,
Refunding,
5%,
5/15/48
......................
10,000,000
10,169,698
San
Jacinto
River
Authority
,
Revenue,
2011,
AGMC
Insured,
5%,
10/01/32
............................
5,000,000
5,000,851
Revenue,
2011,
AGMC
Insured,
5%,
10/01/37
............................
3,000,000
3,000,264
Southwest
Higher
Education
Authority,
Inc.
,
Southern
Methodist
University
,
Revenue
,
2013
A
,
5
%
,
10/01/38
...............................................
24,380,000
24,555,577
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
B,
5%,
7/01/43
...........
10,000,000
9,895,892
CHRISTUS
Health
Obligated
Group,
Revenue,
2022
A,
4%,
7/01/53
............
3,100,000
2,475,217
e
CHRISTUS
Health
Obligated
Group,
Revenue,
2022
A,
5%,
7/01/53
............
15,000,000
14,203,163
Cook
Children's
Medical
Center
Obligated
Group,
Revenue,
2013
A,
Refunding,
5.25%,
12/01/39
.................................................
10,000,000
10,094,197
Hendrick
Medical
Center
Obligated
Group,
Revenue,
2013,
Pre-Refunded,
5.5%,
9/01/43
........................................................
5,350,000
5,444,830
Texas
Health
Resources
Obligated
Group,
Revenue,
2015
A,
5%,
11/15/52
......
5,000,000
4,809,011
Texas
Health
Resources
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
2/15/41
15,165,000
15,178,025
Tarrant
County
Health
Facilities
Development
Corp.
,
Texas
Health
Resources
Obligated
Group
,
Revenue
,
1994
,
NATL
Insured
,
ETM,
6
%
,
9/01/24
....................
1,825,000
1,888,309
Tarrant
County
Health
Facilities
Development
Corp.
,
Texas
Health
Resources
Obligated
Group,
Revenue,
1994,
NATL
Insured,
ETM,
6%,
9/01/24
........................................................
1,825,000
1,888,309
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue,
2021,
Refunding,
5%,
12/15/28
................................
12,715,000
12,888,950
Revenue,
2021,
Refunding,
5%,
12/15/31
................................
7,250,000
7,292,761
Revenue,
2021,
Refunding,
5%,
12/15/32
................................
2,750,000
2,752,938
Texas
Transportation
Commission
,
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn
.,
8/01/48
......
6,250,000
1,250,381
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn
.,
8/01/49
......
5,000,000
935,127
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn
.,
8/01/50
......
5,500,000
963,875
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
4%,
10/15/43
.......................................................
25,000,000
22,991,617
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2022,
5%,
10/15/47
16,050,000
16,665,550
d
Town
of
Little
Elm
,
Valencia
Public
Improvement
District,
Special
Assessment,
144A,
2021,
3.125%,
9/01/41
........................................................
708,000
476,051
Valencia
Public
Improvement
District,
Special
Assessment,
144A,
2021,
4%,
9/01/47
831,000
635,407
West
Travis
County
Public
Utility
Agency
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
......................................................
5,000,000
4,339,698
Westside
211
Special
Improvement
District
,
GO,
Sub.
Lien,
2021,
3%,
8/15/41
.....................................
790,000
549,428
GO,
Sub.
Lien,
2021,
3%,
8/15/45
.....................................
615,000
403,901
GO,
Sub.
Lien,
2021,
3%,
8/15/51
.....................................
1,570,000
980,844
875,952,775
Utah
0.9%
Central
Utah
Water
Conservancy
District
,
Revenue,
2017
B,
Refunding,
4%,
10/01/37
..............................
2,600,000
2,466,320
Revenue,
2017
B,
Refunding,
4%,
10/01/38
..............................
10,000,000
9,345,350
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)
Utah
(continued)
City
of
Salt
Lake
City
,
Airport,
Revenue,
2017
A,
5%,
7/01/47
..................................
$
11,140,000
$
10,627,637
Airport,
Revenue,
2018
A,
5%,
7/01/48
..................................
13,860,000
13,207,683
Airport,
Revenue,
2018
A,
5.25%,
7/01/48
...............................
10,000,000
9,876,470
Airport,
Revenue,
2021
A,
5%,
7/01/51
..................................
5,000,000
4,748,287
Jordan
Valley
Water
Conservancy
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
10/01/41
6,000,000
5,370,283
University
of
Utah
(The)
,
Revenue
,
2022
A
,
5
%
,
8/01/46
......................
9,645,000
10,081,305
Utah
Infrastructure
Agency
,
Revenue,
2021,
3%,
10/15/26
........................................
550,000
511,180
Revenue,
2021,
4%,
10/15/28
........................................
350,000
329,825
Revenue,
2021,
4%,
10/15/32
........................................
540,000
479,502
Revenue,
2021,
4%,
10/15/38
........................................
500,000
405,834
Revenue,
2021,
4%,
10/15/41
........................................
1,450,000
1,134,974
Revenue,
2021,
3%,
10/15/45
........................................
2,000,000
1,194,840
Revenue,
2022,
5%,
10/15/37
........................................
1,200,000
1,138,601
Revenue,
2022,
5%,
10/15/46
........................................
3,650,000
3,256,610
Utah
Municipal
Power
Agency
,
Revenue
,
2016
B
,
5
%
,
7/01/38
..................
10,000,000
10,349,506
84,524,207
Vermont
0.1%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
President
&
Fellows
of
Middlebury
College,
Revenue,
2020,
Refunding,
5%,
11/01/49
4,000,000
4,093,060
University
of
Vermont
Health
Network
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
12/01/36
...........................................
5,000,000
5,067,979
9,161,039
Virginia
0.5%
Amelia
County
Industrial
Development
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2002
,
Refunding
,
1.45
%
,
4/01/27
......................................
2,350,000
2,037,599
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien
,
2020
A
,
5
%
,
7/01/60
................................................
19,000,000
19,529,393
Virginia
Commonwealth
Transportation
Board
,
Revenue
,
2019
,
4
%
,
5/15/41
.......
13,585,000
12,716,391
Virginia
Resources
Authority
,
Revenue
,
2012
A
,
5
%
,
11/01/39
..................
70,000
70,076
Virginia
Small
Business
Financing
Authority
,
Capital
Beltway
Express
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
5%,
12/31/57
7,500,000
7,069,520
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/39
........................................................
5,520,000
4,690,959
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/51
....................................................
4,000,000
3,177,046
49,290,984
Washington
2.5%
c
Align
Capital
Trust
,
Revenue
,
2020-4A
,
Mandatory
Put
,
3.75
%
,
1/01/26
...........
10,482,247
9,563,103
City
of
Seattle
,
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/36
............
22,170,000
21,627,571
Municipal
Light
&
Power,
Revenue,
2018
A,
4%,
1/01/42
.....................
10,855,000
9,850,050
County
of
King
,
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
7/01/49
................
12,000,000
12,329,831
Everett
Housing
Authority
,
Revenue
,
2022
,
Refunding
,
4
%
,
7/01/37
..............
34,480,000
30,541,446
NJB
Properties
,
Revenue
,
2006
A
,
5
%
,
12/01/36
............................
5,000
5,007
Port
of
Seattle
,
Revenue,
2018
A,
5%,
5/01/38
........................................
15,000,000
15,133,079
Revenue,
2019,
4%,
4/01/44
.........................................
4,000,000
3,227,744
Revenue,
2021
C,
Refunding,
5%,
8/01/46
...............................
11,915,000
11,401,469
University
of
Washington
,
Revenue
,
2018
,
5
%
,
4/01/48
.......................
29,450,000
30,188,270
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)
Washington
(continued)
Washington
Health
Care
Facilities
Authority
,
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/45
........................................................
$
2,610,000
$
2,170,381
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
9/01/50
........................................................
3,000,000
2,850,344
d
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/29
.......................................................
250,000
261,689
d
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/30
.......................................................
265,000
276,160
d
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/33
.......................................................
250,000
252,878
d
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
3%,
12/01/34
.......................................................
300,000
243,745
d
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/40
.......................................................
870,000
752,090
d
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/45
.......................................................
1,200,000
996,760
d
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/48
.......................................................
910,000
740,661
Multicare
Health
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
4%,
8/15/41
25,000,000
21,733,693
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2012
A,
5%,
10/01/42
..
10,175,000
10,176,608
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2014
D,
5%,
10/01/41
..
9,685,000
9,507,278
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2014
D,
Pre-Refunded,
5%,
10/01/41
...................................................
315,000
323,473
Washington
Higher
Education
Facilities
Authority
,
Seattle
Pacific
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/42
......................................
3,800,000
3,622,540
Washington
State
Convention
Center
Public
Facilities
District
,
Lodging
Tax
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
7/01/43
.......................................
14,855,000
11,854,611
Washington
State
Housing
Finance
Commission
,
Revenue,
2021-1,
A,
3.5%,
12/20/35
...................................
21,552,483
18,225,956
d
Madison
at
Rivers
Edge
Apartments
LLC,
Revenue,
144A,
2021
A,
3.65%,
1/01/37
2,965,000
2,192,409
230,048,846
West
Virginia
0.7%
Berkeley
County
Public
Service
Sewer
District
,
Revenue
,
2016
B
,
Refunding
,
BAM
Insured
,
5
%
,
6/01/36
...............................................
1,000,000
1,041,737
West
Virginia
Hospital
Finance
Authority
,
Cabell
Huntington
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
........................................................
13,250,000
12,321,753
Charleston
Area
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/38
....................................................
3,040,000
2,984,685
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/47
17,190,000
16,266,228
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/52
20,700,000
19,355,216
West
Virginia
Water
Development
Authority
,
Revenue,
2016
A,
Refunding,
5%,
10/01/36
..............................
5,000,000
5,212,728
Revenue,
2016
A,
Refunding,
5%,
10/01/45
..............................
5,435,000
5,636,209
62,818,556
Wisconsin
3.1%
Public
Finance
Authority
,
d
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
21,085,631
15,609,963
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4.25%,
12/01/50
...................
3,750,000
2,684,813
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
11/15/41
.......................................................
1,205,000
1,134,424
d
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
39,000,000
28,661,030
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
........................................................
5,075,000
3,900,718
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
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Public
Finance
Authority,
(continued)
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/51
........................................................
$
5,705,000
$
4,174,066
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/56
........................................................
2,250,000
1,611,354
Blue
Ridge
Healthcare
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/01/50
2,185,000
1,372,616
CFC-SA
LLC,
Revenue,
Senior
Lien,
2022
A,
5%,
2/01/62
...................
10,000,000
8,209,768
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/41
..........
1,000,000
782,621
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/61
..........
10,000,000
6,738,898
c
Duke
Energy
Progress
LLC,
Revenue,
2022
B,
Refunding,
Mandatory
Put,
4%,
10/01/30
.......................................................
2,200,000
2,142,324
d
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/22
....
42,800,000
42,662,351
d
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
A,
3.8%,
12/01/37
24,375,000
18,735,841
RED
River
Valley
Alliance
LLC,
Revenue,
2021,
4%,
3/31/56
.................
21,750,000
14,956,735
Renown
Regional
Medical
Center,
Revenue,
2020
A,
Refunding,
4%,
6/01/45
.....
14,000,000
11,729,886
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/39
............................................
4,755,000
3,993,435
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/41
............................................
5,145,000
4,240,083
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/46
............................................
11,980,000
9,363,676
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/51
............................................
2,000,000
1,518,821
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/41
............
1,280,000
1,034,444
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/51
............
10,000
7,406
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/61
............
6,000,000
4,207,604
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/41
...........................................
1,010,000
812,780
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/51
...........................................
2,185,000
1,600,253
c,d
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-2,
Mandatory
Put,
4%,
12/01/35
...................................................
29,600,000
22,736,870
Wisconsin
Center
District
,
Revenue,
Junior
Lien
,
2020
D
,
AGMC
Insured
,
Zero
Cpn
.,
12/15/45
........................................................
20,000,000
5,837,978
Wisconsin
Health
&
Educational
Facilities
Authority
,
Ascension
Health
Credit
Group,
Revenue,
2013
B-2,
4%,
11/15/43
.............
12,045,000
10,172,445
Children's
Hospital
of
Wisconsin
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
15,000,000
13,206,045
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2017
C,
Refunding,
5%,
2/15/47
........................................................
20,000,000
19,165,650
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/47
....................................................
5,200,000
3,740,552
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/57
....................................................
1,400,000
940,167
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/36
........................................................
530,000
453,996
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/41
........................................................
510,000
416,166
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/45
........................................................
475,000
369,443
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/36
........................................................
775,000
653,799
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/41
........................................................
770,000
616,779
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/45
........................................................
650,000
495,343
Thedacare
,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
12/15/37
......
5,135,000
4,626,985
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/46
......
895,000
702,038
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.
44
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Wisconsin
Health
&
Educational
Facilities
Authority,
(continued)
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/51
......
$
1,335,000
$
1,012,643
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/55
......
1,760,000
1,305,667
278,338,476
U.S.
Territories
3.2%
District
of
Columbia
2.2%
District
of
Columbia
,
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/24
.....................
12,120,000
12,137,152
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/25
.....................
7,000,000
7,006,989
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/26
.....................
9,950,000
9,959,526
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/42
..........
20,660,000
20,663,754
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/47
..........
24,985,000
24,402,864
Catholic
University
of
America
(The),
Revenue,
2018,
Refunding,
5%,
10/01/43
...
4,000,000
3,963,256
Children's
National
Medical
Center
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
7/15/40
........................................................
6,830,000
6,797,154
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/49
............
1,000,000
897,351
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/54
............
1,905,000
1,684,053
Tobacco
Settlement
Financing
Corp.,
Revenue,
2001,
6.5%,
5/15/33
...........
4,590,000
4,669,415
Water
&
Sewer
Authority,
Revenue,
Senior
Lien,
2018
A,
5%,
10/01/49
..........
25,000,000
25,705,915
Metropolitan
Washington
Airports
Authority
,
Aviation,
Revenue,
2018
A,
Refunding,
5%,
10/01/48
.......................
10,275,000
9,957,659
Aviation,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
.......................
24,750,000
23,700,122
Dulles
Toll
Road,
Revenue,
Second
Lien,
2009
C,
Pre-Refunded,
AGMC
Insured,
6.5%,
10/01/41
..................................................
25,000,000
27,808,613
Dulles
Toll
Road,
Revenue,
Sub.
Lien,
2019
B,
Refunding,
4%,
10/01/49
........
13,555,000
10,931,587
Washington
Metropolitan
Area
Transit
Authority
,
Dedicated
,
Revenue
,
2021
A
,
4
%
,
7/15/43
.........................................................
12,775,000
11,281,143
201,566,553
Puerto
Rico
1.0%
PR
Custodial
Trust
,
Revenue
,
2002
A
,
5.5
%
,
7/01/29
.........................
3,614,380
3,636,905
Puerto
Rico
Electric
Power
Authority
,
g
Revenue,
2012
A,
5%,
7/01/42
........................................
18,925,000
14,241,062
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
5,780,000
5,675,309
g
Revenue,
XX,
5.25%,
7/01/40
........................................
15,000,000
11,287,500
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2007
N,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
................
2,725,000
2,643,144
Revenue,
2007
N,
Refunding,
AGMC,
FGIC
Insured,
5.25%,
7/01/39
...........
160,000
154,542
Revenue,
CC,
Refunding,
AGMC
Insured,
5.5%,
7/01/28
....................
2,500,000
2,541,213
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/34
...................
2,385,000
2,320,877
Revenue,
CC,
Refunding,
AGMC
Insured,
5.25%,
7/01/36
...................
11,980,000
11,620,135
Revenue,
L,
Refunding,
NATL
Insured,
5.25%,
7/01/35
......................
7,430,000
7,214,116
Revenue,
L,
Refunding,
AGMC
Insured,
5.25%,
7/01/41
.....................
14,485,000
13,956,654
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000
A
,
6.625
%
,
6/01/26
.....
3,900,000
4,038,987
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
7,346,000
6,317,473
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
5,593,000
4,631,951
90,279,868
Total
U.S.
Territories
....................................................................
291,846,421
Total
Municipal
Bonds
(Cost
$9,854,512,000)
...................................
8,931,954,826
Total
Long
Term
Investments
(Cost
$9,868,267,733)
.............................
8,945,289,956
a
a
a
a
a
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
45
Short
Term
Investments
0.1%
a
a
Principal
Amount
a
Value
Municipal
Bonds
0.1%
New
York
0.0%
†
h
Metropolitan
Transportation
Authority
,
Dedicated
Tax
Fund
,
Revenue
,
2008
A-1
,
Refunding
,
LOC
TD
Bank
NA
,
Daily
VRDN
and
Put
,
1.6
%
,
11/01/31
............
$
2,300,000
$
2,300,000
h
Nassau
County
Industrial
Development
Agency
,
Cold
Spring
Harbor
Laboratory
,
Revenue
,
1999
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
1.64
%
,
1/01/34
2,000,000
2,000,000
4,300,000
Oregon
0.0%
†
h
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group,
Revenue,
2018
A,
Refunding,
LOC
US
Bank
NA,
Daily
VRDN
and
Put,
1.64%,
8/01/34
.................................
1,200,000
1,200,000
PeaceHealth
Obligated
Group,
Revenue,
2018
B,
Refunding,
LOC
TD
Bank
NA,
Daily
VRDN
and
Put,
1.61%,
8/01/34
.................................
1,500,000
1,500,000
2,700,000
Pennsylvania
0.0%
†
h
Delaware
County
Industrial
Development
Authority
,
United
Parcel
Service,
Inc.
,
Revenue
,
2015
,
Refunding
,
Daily
VRDN
and
Put
,
1.73
%
,
9/01/45
..............
2,500,000
2,500,000
Virginia
0.1%
h
Albemarle
County
Economic
Development
Authority
,
Sentara
Healthcare
Obligated
Group
,
Revenue
,
2018
B
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
1.62
%
,
10/01/48
........................................................
3,700,000
3,700,000
Total
Municipal
Bonds
(Cost
$13,200,000)
......................................
13,200,000
Total
Short
Term
Investments
(Cost
$13,200,000
)
................................
13,200,000
a
Total
Investments
(Cost
$9,881,467,733)
99.1%
..................................
$8,958,489,956
Other
Assets,
less
Liabilities
0.9%
.............................................
75,144,420
Net
Assets
100.0%
...........................................................
$9,033,634,376
See
Abbreviations
on
page
57
.
†
Rounds
to
less
than
0.1%
of
net
assets.  
a
See
Note
3(h)
regarding
investments
in
affiliated
management
investment
companies.  
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
11
regarding
fair
value
measurements.  
c
The
maturity
date
shown
represents
the
mandatory
put
date.  
d
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,
2022,
the
aggregate
value
of
these
securities
was
$679,942,325,
representing
7.5%
of
net
assets.  
e
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).  
f
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).
g
See
Note
7
regarding
defaulted
securities.  
h
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,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Franklin
Federal
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$9,879,212,000
Cost
-
Non-controlled
affiliates
(Note
3
h
)
........................................................
2,255,733
Value
-
Unaffiliated
issuers
..................................................................
$8,956,654,826
Value
-
Non-controlled
affiliates
(Note
3
h
)
.......................................................
1,835,130
Cash
....................................................................................
17,264,795
Receivables:
Investment
securities
sold
...................................................................
21,861,075
Capital
shares
sold
........................................................................
6,153,514
Interest
.................................................................................
123,304,529
Total
assets
..........................................................................
9,127,073,869
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
63,158,643
Capital
shares
redeemed
...................................................................
20,844,420
Management
fees
.........................................................................
3,356,161
Distribution
fees
..........................................................................
988,205
Transfer
agent
fees
........................................................................
1,678,453
Trustees'
fees
and
expenses
.................................................................
82
Distributions
to
shareholders
.................................................................
2,411,698
Accrued
expenses
and
other
liabilities
...........................................................
1,001,831
Total
liabilities
.........................................................................
93,439,493
Net
assets,
at
value
.................................................................
$9,033,634,376
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$10,620,937,108
Total
distributable
earnings
(losses)
.............................................................
(1,587,302,732)
Net
assets,
at
value
.................................................................
$9,033,634,376
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
October
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
Franklin
Federal
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$1,744,820,685
Shares
outstanding
........................................................................
173,747,202
Net
asset
value
per
share
a
..................................................................
$10.04
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$10.43
Class
A1:
Net
assets,
at
value
.......................................................................
$5,278,042,312
Shares
outstanding
........................................................................
525,558,056
Net
asset
value
per
share
a
..................................................................
$10.04
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$10.43
Class
C:
Net
assets,
at
value
.......................................................................
$264,542,355
Shares
outstanding
........................................................................
26,362,857
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$10.04
Class
R6:
Net
assets,
at
value
.......................................................................
$663,247,759
Shares
outstanding
........................................................................
65,997,435
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$10.05
Advisor
Class:
Net
assets,
at
value
.......................................................................
$1,082,981,265
Shares
outstanding
........................................................................
107,730,991
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$10.05
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,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
48
Franklin
Federal
Tax-
Free
Income
Fund
Investment
income:
Dividends:
Non-controlled
affiliates
(Note
3
h
)
.............................................................
$26,118
Interest:
Unaffiliated
issuers
........................................................................
194,100,377
Total
investment
income
...................................................................
194,126,495
Expenses:
Management
fees
(Note
3
a
)
...................................................................
22,109,056
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
2,339,210
    Class
A1
...............................................................................
2,951,643
    Class
C
................................................................................
1,006,553
Transfer
agent
fees:
(Note
3e
)
    Class
A
................................................................................
687,529
    Class
A1
...............................................................................
2,167,645
    Class
C
................................................................................
113,688
    Class
R6
...............................................................................
82,097
    Advisor
Class
............................................................................
455,112
Custodian
fees
(Note
4
)
......................................................................
27,957
Reports
to
shareholders
fees
..................................................................
129,103
Registration
and
filing
fees
....................................................................
161,318
Professional
fees
...........................................................................
64,735
Trustees'
fees
and
expenses
..................................................................
55,034
Other
....................................................................................
773,703
Total
expenses
.........................................................................
33,124,383
Expense
reductions
(Note
4
)
...............................................................
(36,949)
Expenses
waived/paid
by
affiliates
(Note
3
h
and
3
f
)
..............................................
(3,154)
Net
expenses
.........................................................................
33,084,280
Net
investment
income
................................................................
161,042,215
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(149,433,177)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(709,743,961)
Non-controlled
affiliates
(Note
3
h
)
...........................................................
(158,115)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(709,902,076)
Net
realized
and
unrealized
gain
(loss)
............................................................
(859,335,253)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(698,293,038)
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
49
Franklin
Federal
Tax-Free
Income
Fund
Six
Months
Ended
October
31,
2022
(unaudited)
Year
Ended
April
30,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$161,042,215
$310,875,375
Net
realized
gain
(loss)
.................................................
(149,433,177)
(12,236,135)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(709,902,076)
(1,316,689,075)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(698,293,038)
(1,018,049,835)
Distributions
to
shareholders:
Class
A
.............................................................
(28,492,300)
(50,616,434)
Class
A1
............................................................
(94,173,077)
(183,188,514)
Class
C
.............................................................
(4,085,999)
(9,318,428)
Class
R6
............................................................
(12,255,517)
(12,467,766)
Advisor
Class
........................................................
(20,350,577)
(49,025,669)
Total
distributions
to
shareholders
..........................................
(159,357,470)
(304,616,811)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
(9,515,867)
386,756,931
Class
A1
............................................................
(477,254,302)
113,876,079
Class
C
.............................................................
(50,278,109)
(159,312,706)
Class
R6
............................................................
(35,930,478)
541,755,762
Advisor
Class
........................................................
(195,139,157)
(258,749,974)
Total
capital
share
transactions
............................................
(768,117,913)
624,326,092
Net
increase
(decrease)
in
net
assets
...................................
(1,625,768,421)
(698,340,554)
Net
assets:
Beginning
of
period
.....................................................
10,659,402,797
11,357,743,351
End
of
period
..........................................................
$9,033,634,376
$10,659,402,797
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
50
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
.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis
,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees. 
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation 
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Fund's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
exchange
traded
funds
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
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
or
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Fund
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
51
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,
2022,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests. 
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.
2.
Shares
of
Beneficial
Interest
At
October
31,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund’s
shares
were
as
follows:
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
52
franklintempleton.com
Semiannual
Report
Six
Months
Ended
October
31,
2022
Year
Ended
April
30,
2022
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
39,200,841
$419,507,156
57,323,954
$697,775,073
Shares
issued
in
reinvestment
of
distributions
..........
2,509,527
26,669,912
3,971,105
47,710,353
Shares
issued
on
reorganizatio
n
....................
—
—
9,435,472
115,773,245
Shares
redeemed
...............................
(42,654,940)
(455,692,935)
(39,950,701)
(474,501,740)
Net
increase
(decrease)
..........................
(944,572)
$(9,515,867)
30,779,830
$386,756,931
Class
A1
Shares:
Shares
sold
...................................
6,463,545
$69,064,582
15,054,327
$183,058,258
Shares
issued
in
reinvestment
of
distributions
..........
7,829,670
83,283,288
13,599,254
163,664,895
Shares
issued
on
reorganization
....................
—
—
49,975,706
613,201,912
Shares
redeemed
...............................
(58,909,903)
(629,602,172)
(70,691,180)
(846,048,986)
Net
increase
(decrease)
..........................
(44,616,688)
$(477,254,302)
7,938,107
$113,876,079
Class
C
Shares:
Shares
sold
...................................
1,464,911
$15,660,665
3,716,788
$45,280,773
Shares
issued
in
reinvestment
of
distributions
..........
364,195
3,872,133
733,464
8,846,940
Shares
issued
on
reorganization
....................
—
—
1,735,094
21,272,254
Shares
redeemed
a
..............................
(6,547,223)
(69,810,907)
(19,274,981)
(234,712,673)
Net
increase
(decrease)
..........................
(4,718,117)
$(50,278,109)
(13,089,635)
$(159,312,706)
Class
R6
Shares:
Shares
sold
...................................
8,478,295
$91,412,563
54,781,213
$651,782,854
Shares
issued
in
reinvestment
of
distributions
..........
1,126,906
11,991,405
1,026,958
12,186,565
Shares
issued
on
reorganization
....................
—
—
1,013,698
12,438,071
Shares
redeemed
...............................
(12,977,918)
(139,334,446)
(11,382,871)
(134,651,728)
Net
increase
(decrease)
..........................
(3,372,717)
$(35,930,478)
45,438,998
$541,755,762
Advisor
Class
Shares:
Shares
sold
...................................
19,500,398
$209,395,430
28,373,850
$343,733,860
Shares
issued
in
reinvestment
of
distributions
..........
1,642,674
17,498,962
3,623,455
43,752,677
Shares
issued
on
reorganization
....................
—
—
5,992,099
73,582,974
Shares
redeemed
...............................
(39,379,329)
(422,033,549)
(60,532,412)
(719,819,485)
Net
increase
(decrease)
..........................
(18,236,257)
$(195,139,157)
(22,543,008)
$(258,749,974)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
53
franklintempleton.com
Semiannual
Report
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated
daily
and
paid
monthly,
to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
period
ended
October
31,
2022,
the
annualized
gross
effective
investment
management
fee
rate
was
0.440%
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:
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
In
excess
of
$20
billion
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.10%
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
54
franklintempleton.com
Semiannual
Report
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
:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
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,
2022,
the
Fund
paid
transfer
agent
fees
of
$3,506,071,
of
which
$1,375,377
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,
2023.
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,
2022,
these
purchase
and
sale
transactions
aggregated
$405,680,218
and
$366,456,708,
respectively,
with
net
realized
losses
of
$12,155,693.
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,
2022,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Class
C
....................................................................................
0.65%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$37,599
CDSC
retained
..............................................................................
$204,253
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
55
franklintempleton.com
Semiannual
Report
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,
2022,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations. 
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains. 
At
April
30,
2022,
the
capital
loss
carryforwards
were
as
follows:
At
October
31,
2022,
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,
2022,
aggregated
$1,488,560,870 and
$2,010,787,900,
respectively.
    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
Municipal
Green
Bond
ETF
...................
$
1,993,245
$
—
$
—
$
—
$
(158,115)
$
1,835,130
83,000
$
26,118
Total
Affiliated
Securities
...
$1,993,245
$—
$—
$—
$(158,115)
$1,835,130
$26,118
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$268,132,534
Long
term
................................................................................
257,221,748
Total
capital
loss
carryforwards
...............................................................
$525,354,282
a
a
Includes
$90,841,159
from
the
merged
Franklin
Florida
Tax-Free
Income
Fund,
Franklin
Kentucky
Tax-Free
Income
Fund
and
Franklin
Tennessee
Municipal
Bond
Fund,
which
may
be
carried
over
to
offset
future
capital
gains,
subject
to
certain
limitations.
Cost
of
investments
..........................................................................
$9,880,671,282
Unrealized
appreciation
........................................................................
$77,437,898
Unrealized
depreciation
........................................................................
(999,619,224)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(922,181,326)
3.
Transactions
with
Affiliates
(continued)
h.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
56
franklintempleton.com
Semiannual
Report
7.
Defaulted
Securities
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
October
31,
2022,
the
aggregate
value
of
these
securities
was
$25,528,562,
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
Schedule
of
Investments.
8.
Geopolitical
Risk 
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedure
approved
by
the
Board.
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.
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
3,
2023.
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,
2022,
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.
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
57
franklintempleton.com
Semiannual
Report
A
summary
of
inputs
used
as
of
October
31,
2022,
in
valuing
the
Fund's assets
carried
at
fair
value,
is
as
follows:
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period.
12.
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.
Abbreviations
Level
1
Level
2
Level
3
Total
Franklin
Federal
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
$
1,835,130
$
—
$
—
$
1,835,130
Corporate
Bonds
........................
—
—
11,500,000
11,500,000
Municipal
Bonds
.........................
—
8,931,954,826
—
8,931,954,826
Short
Term
Investments
...................
—
13,200,000
—
13,200,000
Total
Investments
in
Securities
...........
$1,835,130
$8,945,154,826
$11,500,000
$8,958,489,956
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.
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
PSF
Permanent
School
Fund
SPA
Standby
Purchase
Agreement
11.
Fair
Value
Measurements
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
58
franklintempleton.com
Semiannual
Report
Liquidity
Risk
Management
Program
Each
of
the
Franklin
Templeton
and
Legg
Mason
Funds
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
Franklin
Templeton
and
Legg
Mason
products
and
portfolios.
The
ILC
includes
representatives
from
Franklin
Templeton’s
Risk,
Trading,
Global
Compliance,
Legal,
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
2022,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2021.
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
59
franklintempleton.com
Semiannual
Report
Quarterly
Schedule
of
Investments
The
Fund
files
a
complete
Schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
as
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
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
12/22
©
2022
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 Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
 
 
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
 
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
 
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, 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 22, 2022
 
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 22, 2022
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  December 22, 2022