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: 10/31/23
 
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
Franklin
Federal
Tax-Free
Income
Fund
October
31,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
The
Securities
and
Exchange
Commission
has
adopted
new
regulations
that
will
result
in
changes
to
the
design
and
delivery
of
annual
and
semiannual
shareholder
reports
beginning
in
July
2024.
If
you
have
previously
elected
to
receive
shareholder
reports
electronically,
you
will
continue
to
do
so
and
need
not
take
any
action.
Otherwise,
paper
copies
of
the
Fund’s
shareholder
reports
will
be
mailed
to
you
beginning
in
July
2024.
If
you
would
like
to
receive
shareholder
reports
and
other
communications
from
the
Fund
electronically
instead
of
by
mail,
you
may
make
that
request
at
any
time
by
contacting
your
financial
intermediary
(such
as
a
broker-dealer
or
bank)
or,
if
you
are
a
direct
investor,
enrolling
at
franklintempleton.com.
You
may
access
franklintempleton.com
by
scanning
the
code
below.
franklintempleton.com
Semiannual
Report
1
Contents
Fund
Overview
2
Performance
Summary
3
Your
Fund’s
Expenses
5
Financial
Highlights
and
Schedule
of
Investments
6
Financial
Statements
44
Notes
to
Financial
Statements
48
Shareholder
Information
57
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Semiannual
Report
Franklin
Federal
Tax-Free
Income
Fund
This
semiannual
report
for
Franklin
Federal
Tax-Free
Income
Fund
covers
the
period
ended
October
31,
2023.
Fund
Overview
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 $10.72
on
April
30,
2023,
to $9.91
on
October
31,
2023.
The
Fund’s
Class
A
shares
paid
dividends
totaling 17.9739
cents
per
share
for
the
reporting
period.
2
The
Performance
Summary
beginning
on
page 
3
shows
that
at
the
end
of
this
reporting
period
the
Fund’s
Class
A
shares’
distribution
rate
was
3.44%,
based
on
an
annualization
of the
October
's
2.9500 cents
per
share dividend
and
the
maximum
offering
price
of
$10.30
on
October
31,
2023.
An
investor
in
the 2023 maximum federal personal
income
tax
bracket
of
37.00% (plus
3.80%
Medicare
tax)
would
need
to
earn
a
distribution
rate
of 5.81%
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.
Thank
you
for
your
continued
participation
in
Franklin
Federal
Tax-Free
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Portfolio
Composition
10/31/23
%
of
Total
Investments*
Transportation
17.87%
Health
Care
15.99%
Housing
11.53%
Industrial
Dev.
Revenue
and
Pollution
Control
11.16%
Utilities
10.63%
Special
Tax
9.13%
Local
6.30%
Education
5.87%
Lease
5.52%
Refunded
2.95%
State
General
Obligation
2.52%
Other
Revenue
Bonds
0.53%
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.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
11
.
Performance
Summary
as
of
October
31,
2023
Franklin
Federal
Tax-Free
Income
Fund
3
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 10/31/23
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
-5.95%
-9.48%
1-Year
+2.08%
-1.75%
5-Year
+0.21%
-0.72%
10-Year
+16.99%
+1.19%
Advisor
6-Month
-5.73%
-5.73%
1-Year
+2.43%
+2.43%
5-Year
+1.58%
+0.31%
10-Year
+19.24%
+1.78%
Share
Class
Distribution
Rate
6
Taxable
Equivalent
Distribution
Rate
7
30-Day
Standardized
Yield
8
Taxable
Equivalent
30-Day
Standardized
Yield
7
A
3.44%
5.81%
4.34%
7.33%
Advisor
3.81%
6.44%
4.76%
8.04%
See
page
4
for
Performance
Summary
footnotes.
Franklin
Federal
Tax-Free
Income
Fund
Performance
Summary
4
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.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
All
investments
involve
risks,
including
possible
loss
of
principal.
Fixed
income
securities
involve
interest
rate,
credit,
inflation
and
reinvestment
risks,
and
possible
loss
of
principal.
As
interest
rates
rise,
the
value
of
fixed
income
securities
falls.
Changes
in
the
credit
rating
of
a
bond
,
or
in
the
credit
rating
or
financial
strength
of
a
bond’s
issuer,
insurer
or
guarantor,
may
affect
the
bond’s
value.
These
and
other
risks
are
discussed
in
the
Fund’s
prospectus.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
5.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
October
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
Class)
per
share
on
10/31/23.
7.
Taxable
equivalent
distribution
rate
and
yield
assume
the
2023
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
(5/1/23–10/31/23)
Share
Class
Net
Investment
Income
A
$0.179739
A1
$0.187654
C
$0.158613
R6
$0.195356
Advisor
$0.192939
Total
Annual
Operating
Expenses
9
Share
Class
A
0.79%
Advisor
0.54%
Your
Fund’s
Expenses
Franklin
Federal
Tax-Free
Income
Fund
5
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.
l
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/366
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
5/1/23
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
Ending
Account
Value
10/31/23
Expenses
Paid
During
Period
5/1/23–10/31/23
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$940.50
$3.80
$1,021.22
$3.96
0.78%
A1
$1,000
$942.20
$3.07
$1,021.98
$3.19
0.63%
C
$1,000
$939.50
$5.74
$1,019.21
$5.98
1.18%
R6
$1,000
$942.00
$2.35
$1,022.72
$2.44
0.48%
Advisor
$1,000
$942.70
$2.59
$1,022.47
$2.69
0.53%
Franklin
Federal
Tax-Free
Income
Fund
Financial
Highlights
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
Year
Ended
April
30,
2019
a
2023
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.72
$10.97
$12.31
$11.60
$11.82
$11.62
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.18
0.34
0.31
0.33
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
(0.81)
(0.25)
(1.35)
0.71
(0.22)
0.19
Total
from
investment
operations
........
(0.63)
0.09
(1.04)
1.04
0.13
0.44
Less
distributions
from:
Net
investment
income
..............
(0.18)
(0.34)
(0.30)
(0.33)
(0.35)
(0.24)
Net
asset
value,
end
of
period
..........
$9.91
$10.72
$10.97
$12.31
$11.60
$11.82
Total
return
d
.......................
(5.95)%
0.87%
(8.62)%
9.01%
1.07%
3.87%
Ratios
to
average
net
assets
e
Expenses
f
.........................
0.78%
g
0.79%
g
0.77%
g
0.78%
g
0.77%
0.78%
Net
investment
income
...............
3.49%
3.21%
2.56%
2.72%
2.96%
3.45%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,801,988
$1,940,290
$1,916,791
$1,770,979
$1,110,207
$567,500
Portfolio
turnover
rate
................
11.71%
28.31%
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
7
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.72
$10.97
$12.31
$11.60
$11.82
$11.68
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.19
0.36
0.33
0.35
0.37
0.42
Net
realized
and
unrealized
gains
(losses)
(0.80)
(0.26)
(1.35)
0.70
(0.22)
0.16
Total
from
investment
operations
........
(0.61)
0.10
(1.02)
1.05
0.15
0.58
Less
distributions
from:
Net
investment
income
..............
(0.19)
(0.35)
(0.32)
(0.34)
(0.37)
(0.44)
Net
asset
value,
end
of
period
..........
$9.92
$10.72
$10.97
$12.31
$11.60
$11.82
Total
return
c
.......................
(5.78)%
1.02%
(8.48)%
9.17%
1.22%
5.06%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.63%
f
0.64%
f
0.63%
f
0.63%
f
0.62%
0.63%
Net
investment
income
...............
3.64%
3.35%
2.71%
2.89%
3.11%
3.60%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$4,558,634
$5,215,087
$6,256,503
$6,919,289
$6,833,018
$7,821,881
Portfolio
turnover
rate
................
11.71%
28.31%
22.08%
16.18%
20.23%
14.58%
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.
8
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.71
$10.96
$12.30
$11.59
$11.81
$11.68
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.16
0.30
0.26
0.29
0.31
0.35
Net
realized
and
unrealized
gains
(losses)
(0.80)
(0.25)
(1.34)
0.70
(0.22)
0.15
Total
from
investment
operations
........
(0.64)
0.05
(1.08)
0.99
0.09
0.50
Less
distributions
from:
Net
investment
income
..............
(0.16)
(0.30)
(0.26)
(0.28)
(0.31)
(0.37)
Net
asset
value,
end
of
period
..........
$9.91
$10.71
$10.96
$12.30
$11.59
$11.81
Total
return
c
.......................
(6.05)%
0.47%
(8.99)%
8.58%
0.67%
4.39%
Ratios
to
average
net
assets
d
Expenses
e
........................
1.18%
f
1.19%
f
1.18%
f
1.18%
f
1.17%
1.18%
Net
investment
income
...............
3.08%
2.79%
2.15%
2.35%
2.56%
3.05%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$191,568
$246,760
$340,772
$543,196
$657,344
$841,909
Portfolio
turnover
rate
................
11.71%
28.31%
22.08%
16.18%
20.23%
14.58%
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
9
a
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.73
$10.98
$12.32
$11.61
$11.83
$11.69
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.20
0.37
0.35
0.37
0.39
0.44
Net
realized
and
unrealized
gains
(losses)
(0.81)
(0.25)
(1.35)
0.70
(0.22)
0.15
Total
from
investment
operations
........
(0.61)
0.12
(1.00)
1.07
0.17
0.59
Less
distributions
from:
Net
investment
income
..............
(0.20)
(0.37)
(0.34)
(0.36)
(0.39)
(0.45)
Net
asset
value,
end
of
period
..........
$9.92
$10.73
$10.98
$12.32
$11.61
$11.83
Total
return
c
.......................
(5.80)%
1.17%
(8.35)%
9.31%
1.37%
5.19%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
........
0.48%
0.50%
0.48%
0.49%
0.49%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
e
........
0.48%
f
0.49%
0.48%
f
0.49%
f
0.49%
f
0.49%
f
Net
investment
income
...............
3.77%
3.51%
2.88%
3.00%
3.24%
3.74%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$650,295
$952,887
$761,716
$294,727
$196,774
$177,983
Portfolio
turnover
rate
................
11.71%
28.31%
22.08%
16.18%
20.23%
14.58%
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
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
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,
2023
(unaudited)
Year
Ended
April
30,
2023
2022
2021
2020
2019
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$10.73
$10.98
$12.32
$11.61
$11.83
$11.69
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.20
0.37
0.34
0.36
0.38
0.43
Net
realized
and
unrealized
gains
(losses)
(0.81)
(0.26)
(1.35)
0.71
(0.22)
0.16
Total
from
investment
operations
........
(0.61)
0.11
(1.01)
1.07
0.16
0.59
Less
distributions
from:
Net
investment
income
..............
(0.19)
(0.36)
(0.33)
(0.36)
(0.38)
(0.45)
Net
asset
value,
end
of
period
..........
$9.93
$10.73
$10.98
$12.32
$11.61
$11.83
Total
return
c
.......................
(5.73)%
1.12%
(8.39)%
9.27%
1.33%
5.15%
Ratios
to
average
net
assets
d
Expenses
e
........................
0.53%
f
0.54%
f
0.52%
f
0.53%
f
0.52%
0.53%
Net
investment
income
...............
3.75%
3.44%
2.80%
2.98%
3.21%
3.70%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,180,323
$998,541
$1,383,620
$1,829,553
$1,465,542
$1,210,861
Portfolio
turnover
rate
................
11.71%
28.31%
22.08%
16.18%
20.23%
14.58%
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,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
a
Shares
a
Value
a
Management
Investment
Companies
0.0%
†
Capital
Markets
0.0%
†
a
Franklin
Municipal
Green
Bond
ETF
.....................................
83,000
$
1,822,680
Total
Management
Investment
Companies
(Cost
$2,255,733)
.....................
1,822,680
Principal
Amount
a
a
a
a
Corporate
Bonds
0.4%
Software
0.4%
b
Haven
at
Elgin
LLC
,
5.25
%
,
12/31/53
....................................
$
35,660,000
32,751,702
Total
Corporate
Bonds
(Cost
$35,660,000)
......................................
32,751,702
c
Senior
Floating
Rate
Interests
0.3%
Real
Estate
Management
&
Development
0.1%
b,d
TBG
Hillcrest
Senior
II
LP
,
Delayed
Draw
Term
Loan
,
6.866
%
,
(
1-month
USD
LIBOR
+
1.55
%
),
1/01/38
...................................................
8,146,112
8,276,593
Residential
REITs
0.2%
b,d
Centennial
Gardens
LP
,
Delay
Draw
Term
Loan
,
6.866
%
,
(
1-month
SOFR
+
1.5
%
),
1/08/24
.........................................................
16,317,314
16,501,625
Total
Senior
Floating
Rate
Interests
(Cost
$24,463,425)
..........................
24,778,218
Municipal
Bonds
98.2%
Alabama
2.7%
Alabama
Public
Health
Care
Authority
(The)
,
State
of
Alabama
Department
of
Public
Health
,
Revenue
,
2015
,
Refunding
,
5
%
,
9/01/44
...........................
17,085,000
16,588,734
Alabama
Special
Care
Facilities
Financing
Authority-Birmingham
,
Ascension
Health
Credit
Group
,
Revenue
,
2016
B
,
Refunding
,
5
%
,
11/15/46
...................
10,000,000
9,549,011
e
Black
Belt
Energy
Gas
District
,
Revenue,
2021
B,
Mandatory
Put,
4%,
12/01/26
...........................
26,090,000
25,137,099
Revenue,
2022
B-1,
Mandatory
Put,
4%,
10/01/27
.........................
32,950,000
31,585,629
Revenue,
2022
F,
Mandatory
Put,
5.5%,
12/01/28
.........................
24,715,000
25,017,618
Revenue,
2023
B-2,
Mandatory
Put,
5.25%,
12/01/30
.......................
17,015,000
17,152,856
Revenue,
2023
D-1,
Refunding,
Mandatory
Put,
5.5%,
2/01/29
................
4,000,000
4,050,584
Chilton
County
Health
Care
Authority
,
County
of
Chilton
Sales
Tax
,
Revenue
,
2015
A
,
5
%
,
11/01/40
.....................................................
8,425,000
7,988,499
f
County
of
Mobile
,
Revenue
,
144A,
2020
,
4
%
,
11/01/45
.......................
13,900,000
11,002,754
e
Energy
Southeast
A
Cooperative
District
,
Revenue,
2023
A-1,
Mandatory
Put,
5.5%,
1/01/31
.........................
25,230,000
25,673,803
Revenue,
2023
B-1,
Mandatory
Put,
5.75%,
11/01/31
.......................
15,000,000
15,525,615
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
2,879,461
Jacksonville
Public
Educational
Building
Authority
,
Jacksonville
State
University,
Revenue,
2023
A,
AGMC
Insured,
5.25%,
8/01/53
...
8,000,000
8,011,844
Jacksonville
State
University,
Revenue,
2023
A,
AGMC
Insured,
5.5%,
8/01/58
....
2,000,000
2,025,640
e
Southeast
Energy
Authority
A
Cooperative
District
,
Revenue,
2021
B,
Mandatory
Put,
4%,
12/01/31
...........................
1,000,000
912,452
Revenue,
2022
A-1,
Mandatory
Put,
5.5%,
12/01/29
........................
12,850,000
13,047,213
Revenue,
2023
B,
Mandatory
Put,
5%,
6/01/30
............................
6,000,000
5,962,782
University
of
South
Alabama
,
Revenue
,
2019
A
,
BAM
Insured
,
5
%
,
4/01/49
........
5,000,000
4,792,900
226,904,494
Alaska
0.4%
Alaska
Municipal
Bond
Bank
Authority
,
Revenue,
2015,
Refunding,
5.25%,
10/01/36
.............................
16,045,000
16,215,807
Revenue,
2015,
Refunding,
5%,
10/01/39
................................
12,950,000
12,998,205
Northern
Tobacco
Securitization
Corp.
,
Revenue,
Senior
Lien,
2021
A,
1,
Refunding,
4%,
6/01/50
...................
3,250,000
2,603,913
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.
12
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Alaska
(continued)
Northern
Tobacco
Securitization
Corp.,
(continued)
Revenue,
Senior
Lien,
2021
B-1,
2,
Refunding,
4%,
6/01/50
..................
$
1,535,000
$
1,366,425
33,184,350
Arizona
2.6%
Arizona
Industrial
Development
Authority
,
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
5%,
7/01/32
.............
205,000
206,463
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
5%,
7/01/33
.............
220,000
221,363
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/34
.............
230,000
212,399
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/35
.............
235,000
214,522
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/36
.............
220,000
197,203
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/41
.............
720,000
595,541
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/51
.............
550,000
410,836
KIPP
NYC
Public
Charter
Schools,
Revenue,
2021
B,
4%,
7/01/61
.............
6,050,000
4,283,739
Leman
Academy
of
Excellence
Obligated
Group,
Revenue,
2022
A,
Refunding,
4.5%,
7/01/54
........................................................
10,000,000
7,744,758
Arizona
State
University
,
Revenue
,
2016
C
,
5
%
,
7/01/42
......................
9,000,000
9,046,976
e
Chandler
Industrial
Development
Authority
,
Intel
Corp.
,
Revenue
,
2022-1
,
Mandatory
Put
,
5
%
,
9/01/27
..................................................
9,000,000
9,066,408
City
of
Lake
Havasu
City
,
Wastewater
System
,
Revenue
,
2015
B
,
Refunding
,
AGMC
Insured
,
5
%
,
7/01/40
...............................................
15,000,000
15,103,286
City
of
Phoenix
Civic
Improvement
Corp.
,
Airport,
Revenue,
2017
A,
5%,
7/01/47
..................................
10,000,000
9,576,219
Airport,
Revenue,
Junior
Lien,
2017
D,
Refunding,
4%,
7/01/40
...............
25,000,000
22,607,215
Airport,
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
..........................
6,000,000
5,729,605
Phoenix
Sky
Harbor
International
Airport
Customer
Facility
Charges,
Revenue,
2019
A,
4%,
7/01/45
..................................................
14,985,000
12,260,467
Glendale
Industrial
Development
Authority
,
People
of
Faith,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
5/15/56
........................................
10,000,000
7,467,361
Glendale
Municipal
Property
Corp.
,
City
of
Glendale
Excise
Tax
,
Revenue
,
2012
C
,
Refunding
,
5
%
,
7/01/38
.............................................
15,500,000
15,505,034
Maricopa
County
Industrial
Development
Authority
,
Banner
Health
Obligated
Group,
Revenue,
2019
E,
4%,
1/01/45
...............
10,000,000
8,442,655
Banner
Health
Obligated
Group,
Revenue,
2019
F,
4%,
1/01/45
...............
25,000,000
21,106,637
Christian
Care
Obligated
Group,
Revenue,
2016
A,
Pre-Refunded,
5%,
1/01/36
...
5,000,000
5,132,962
Maricopa
County
Pollution
Control
Corp.
,
El
Paso
Electric
Co.,
Revenue,
2009
A,
Refunding,
3.6%,
2/01/40
.............
19,500,000
15,332,624
Southern
California
Edison
Co.,
Revenue,
2000
A,
Refunding,
2.4%,
6/01/35
.....
5,000,000
3,530,621
Salt
River
Project
Agricultural
Improvement
&
Power
District
,
Revenue
,
2023
A
,
5
%
,
1/01/50
.........................................................
6,500,000
6,627,922
State
of
Arizona
,
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/32
.................
6,000,000
6,737,638
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/34
.................
5,000,000
5,640,654
Distribution,
Revenue,
2005
B,
NATL
Insured,
5.5%,
7/01/35
.................
9,860,000
11,144,607
University
of
Arizona
(The)
,
Revenue
,
2014
,
5
%
,
8/01/44
......................
10,000,000
10,011,962
214,157,677
Arkansas
0.1%
Arkansas
Development
Finance
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group
,
Revenue
,
2020
B-1
,
Refunding
,
5
%
,
9/01/44
........................
6,100,000
5,596,646
California
7.6%
f
Align
Affordable
Housing
Bond
Fund
LP
,
Coronado
Springs
Tower
LLC
,
Revenue
,
144A,
2020-2
,
A
,
4
%
,
9/01/27
.........................................
17,835,000
16,999,787
e
ARC70
II
TRUST
,
Revenue
,
2021-1
,
A
,
Mandatory
Put
,
4
%
,
12/01/37
............
11,360,000
8,836,834
e
California
Community
Choice
Financing
Authority
,
Revenue,
2022
A-1,
Mandatory
Put,
4%,
8/01/28
..........................
15,000,000
14,273,772
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
13
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
California
(continued)
e
California
Community
Choice
Financing
Authority,
(continued)
Revenue,
2023
A-1,
Mandatory
Put,
5%,
8/01/29
..........................
$
5,000,000
$
4,969,709
Revenue,
2023
C,
Mandatory
Put,
5.25%,
10/01/31
........................
43,250,000
42,340,820
f
California
Community
Housing
Agency
,
Aster
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
2/01/56
..........
22,400,000
16,676,746
Brio
Apartments
&
Next
on
Lex
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
2/01/56
....................................................
17,850,000
13,144,453
K
Street
Flats,
Revenue,
144A,
2021
A-1,
3%,
2/01/57
......................
10,000,000
5,561,095
California
Statewide
Communities
Development
Authority
,
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5%,
8/15/42
........................................................
425,000
433,679
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.125%,
8/15/47
........................................................
620,000
632,644
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.25%,
8/15/52
........................................................
7,815,000
7,980,154
Enloe
Medical
Center
Obligated
Group,
Revenue,
2022
A,
AGMC
Insured,
5.375%,
8/15/57
........................................................
12,495,000
12,849,457
f
CMFA
Special
Finance
Agency
,
Latitude33,
Revenue,
144A,
2021
A-1,
3%,
12/01/56
.......................
12,000,000
7,128,348
Solana
at
Grand,
Revenue,
Senior
Lien,
144A,
2021
A-1,
4%,
8/01/56
..........
5,300,000
3,957,299
f
CMFA
Special
Finance
Agency
Enclave
,
Revenue,
Senior
Lien
,
144A,
2022
A-1
,
4
%
,
8/01/58
.........................................................
26,500,000
17,835,284
f
CMFA
Special
Finance
Agency
XII
,
Allure
Apartments
,
Revenue,
Senior
Lien
,
144A,
2022
A-1
,
3.25
%
,
2/01/57
............................................
27,500,000
17,045,256
Corona-Norco
Unified
School
District
,
GO,
C,
AGMC
Insured,
6.2%,
8/01/29
..................................
3,250,000
3,546,060
GO,
C,
Pre-Refunded,
AGMC
Insured,
6.8%,
8/01/39
.......................
8,500,000
9,451,229
GO,
C,
AGMC
Insured,
Zero
Cpn.,
8/01/39
...............................
7,500,000
3,291,653
f
CSCDA
Community
Improvement
Authority
,
777
Place-Pomona,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3.6%,
5/01/47
.......
10,000,000
7,258,041
777
Place-Pomona,
Revenue,
Senior
Lien,
144A,
2021
A-2,
3.25%,
5/01/57
......
12,500,000
7,749,619
Acacia
on
Santa
Rosa
Creek,
Revenue,
Senior
Lien,
144A,
2021
A,
4%,
10/01/56
.
13,000,000
9,655,282
Crescent
(The),
Revenue,
Senior
Lien,
144A,
2022
A-2,
4.3%,
7/01/59
..........
13,700,000
9,991,617
Escondido
Portfolio,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
6/01/48
........
10,000,000
6,159,704
Jefferson
Platinum
Triangle
Apartments,
Revenue,
144A,
2021
A-1,
2.875%,
8/01/41
3,010,000
2,356,659
Monterey
Station
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
7/01/43
.
7,855,000
5,366,006
Park
Crossing
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3.25%,
12/01/58
.
18,750,000
10,963,927
Vineyard
Garden
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3.25%,
10/01/58
14,000,000
8,222,735
Waterscape
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A,
3%,
9/01/56
......
1,670,000
997,653
Westgate
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
6/01/47
......
15,000,000
9,667,276
Wood
Creek
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-1,
3%,
12/01/49
...
30,000,000
17,879,850
Wood
Creek
Apartments,
Revenue,
Senior
Lien,
144A,
2021
A-2,
4%,
12/01/58
...
25,000,000
16,702,985
Foothill-Eastern
Transportation
Corridor
Agency
,
Revenue,
2013
A,
Pre-Refunded,
6%,
1/15/49
............................
9,000,000
9,040,508
Revenue,
2013
A,
Refunding,
AGMC
Insured,
Zero
Cpn.,
1/15/30
..............
15,475,000
16,507,712
Revenue,
2013
A,
Refunding,
Zero
Cpn.,
1/15/42
..........................
20,000,000
22,533,410
M-S-R
Energy
Authority
,
Revenue
,
2009
B
,
6.5
%
,
11/01/39
....................
12,500,000
14,079,150
New
Haven
Unified
School
District
,
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/31
............................
2,055,000
1,470,675
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/32
............................
7,830,000
5,341,524
GO,
2009,
AGMC
Insured,
Zero
Cpn.,
8/01/33
............................
7,660,000
4,976,547
Norman
Y
Mineta
San
Jose
International
Airport
SJC
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
3/01/47
......................................................
23,855,000
22,576,902
Oro
Grande
Elementary
School
District
,
COP,
2020,
Refunding,
4%,
9/15/24
....................................
2,135,000
2,101,136
COP,
2020,
Refunding,
4%,
9/15/25
....................................
2,120,000
2,062,443
COP,
2020,
Refunding,
4%,
9/15/27
....................................
2,400,000
2,276,660
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)
California
(continued)
Oro
Grande
Elementary
School
District,
(continued)
COP,
2020,
Refunding,
4%,
9/15/28
....................................
$
2,095,000
$
1,958,064
Rialto
Unified
School
District
,
GO
,
2011
A
,
AGMC
Insured
,
Zero
Cpn.,
8/01/36
......
20,000,000
10,535,834
San
Diego
County
Regional
Airport
Authority
,
Revenue,
Senior
Lien
,
2023
B
,
5.25
%
,
7/01/58
.........................................................
15,000,000
14,713,774
San
Francisco
City
&
County
Airport
Comm-San
Francisco
International
Airport
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
5/01/49
...............................
39,805,000
38,202,275
San
Jose
Unified
School
District
,
GO
,
2018
E
,
4
%
,
8/01/42
....................
10,600,000
9,712,393
San
Mateo
Foster
City
School
District
,
GO
,
A
,
Zero
Cpn.,
8/01/42
...............
50,000,000
47,538,470
San
Mateo
Union
High
School
District
,
GO,
2011
A,
Zero
Cpn.,
9/01/33
.......................................
6,065,000
5,337,994
GO,
2011
A,
Zero
Cpn.,
9/01/41
.......................................
20,000,000
17,997,006
Santa
Ana
Unified
School
District
,
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/35
...........................
10,000,000
5,806,229
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/36
...........................
18,865,000
10,290,671
GO,
2009
B,
AGMC
Insured,
Zero
Cpn.,
8/01/37
...........................
10,000,000
5,095,633
g
Southern
California
Public
Power
Authority
,
Revenue
,
FRN
,
2007
B
,
5.244
%
,
(
3-month
TSOF
+
1.645
%
),
11/01/38
...........................................
6,000,000
5,259,904
State
of
California
,
GO
,
2002
,
NATL
Insured
,
5
%
,
10/01/32
....................
20,000
20,016
West
Contra
Costa
Unified
School
District
,
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/29
....................
10,000,000
7,849,137
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/30
....................
20,845,000
15,624,484
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/31
....................
20,000,000
14,302,290
GO,
C-1,
Refunding,
AGMC
Insured,
Zero
Cpn.,
8/01/32
....................
10,730,000
7,313,606
640,450,080
Colorado
2.8%
f
Access
25
Metropolitan
District
No.
2
,
GO
,
144A,
2023
,
6.75
%
,
12/01/53
..........
3,555,000
3,518,610
City
&
County
of
Denver
,
Airport
System,
Revenue,
1992
C,
NATL
Insured,
ETM,
6.125%,
11/15/25
.......
3,590,000
3,692,731
Airport
System,
Revenue,
2013
B,
5.25%,
11/15/33
........................
16,405,000
16,404,116
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/37
..................
10,000,000
9,794,732
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/43
..................
5,000,000
4,814,516
Airport
System,
Revenue,
2018
A,
Refunding,
5.25%,
12/01/43
...............
11,045,000
10,920,154
Airport
System,
Revenue,
2018
A,
Refunding,
5%,
12/01/48
..................
15,500,000
14,531,651
Airport
System,
Revenue,
2022
D,
Refunding,
5.75%,
11/15/45
...............
10,000,000
10,491,044
Airport
System,
Revenue,
2022
D,
Refunding,
5%,
11/15/53
..................
10,000,000
9,406,521
Pledged
Excise
Tax,
Revenue,
2018
A-1,
5%,
8/01/48
......................
39,690,000
39,825,525
Pledged
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/35
.................
2,000,000
1,089,110
Pledged
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/36
.................
2,500,000
1,271,652
Pledged
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/37
.................
2,455,000
1,161,989
Pledged
Excise
Tax,
Revenue,
2018
A-2,
Zero
Cpn.,
8/01/38
.................
2,000,000
882,182
Colorado
Educational
&
Cultural
Facilities
Authority
,
James
Irwin
Educational
Foundation
Obligated
Group
,
Revenue
,
2022
,
5
%
,
9/01/62
...................
2,200,000
1,861,041
Colorado
Health
Facilities
Authority
,
AdventHealth
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
11/15/41
......
30,505,000
29,864,316
AdventHealth
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/48
...............
12,000,000
11,664,475
CommonSpirit
Health
Obligated
Group,
Revenue,
2019
A-2,
Refunding,
4%,
8/01/49
13,000,000
10,056,416
CommonSpirit
Health
Obligated
Group,
Revenue,
2022
A,
5.25%,
11/01/52
......
10,500,000
9,876,779
Covenant
Living
Communities
and
Services
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
12/01/50
...........................................
4,930,000
3,528,164
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/45
...
1,000,000
787,481
Parkview
Medical
Center,
Inc.
Obligated
Group,
Revenue,
2020
A,
4%,
9/01/50
...
3,000,000
2,261,497
Eagle
River
Water
&
Sanitation
District
,
Wastewater
,
Revenue
,
2020
A
,
AGMC
Insured
,
4
%
,
12/01/45
.....................................................
1,250,000
1,067,179
f
Fiddlers
Business
Improvement
District
,
GO
,
144A,
2022
,
Refunding
,
5.55
%
,
12/01/47
3,500,000
3,252,886
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)
Colorado
(continued)
Hunters
Overlook
Metropolitan
District
No.
5
,
GO,
2019
A,
5%,
12/01/39
...........................................
$
750,000
$
666,729
GO,
2019
A,
5%,
12/01/49
...........................................
1,000,000
827,028
Park
Creek
Metropolitan
District
,
Westerly
Creek
District
Service
Area
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
12/01/46
.....................................
2,875,000
2,823,308
Public
Authority
for
Colorado
Energy
,
Revenue
,
2008
,
6.5
%
,
11/15/38
............
20,000,000
22,118,624
Regional
Transportation
District
,
Denver
Transit
Partners
LLC
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
7/15/39
.............................................
1,000,000
876,394
Severance
Shores
Metropolitan
District
No.
4
,
GO
,
2020
A
,
5
%
,
12/01/49
.........
2,900,000
2,436,322
South
Maryland
Creek
Ranch
Metropolitan
District
,
GO,
2023,
Refunding,
AGMC
Insured,
5%,
12/01/48
........................
800,000
771,177
GO,
2023,
Refunding,
AGMC
Insured,
5.125%,
12/01/57
....................
2,150,000
2,080,514
Sterling
Ranch
Community
Authority
Board
,
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
3.75%,
12/01/40
.................................................
500,000
394,426
Sterling
Ranch
Colorado
Metropolitan
District
No.
2,
Revenue,
2020
A,
Refunding,
4.25%,
12/01/50
.................................................
1,150,000
878,417
235,897,706
Connecticut
0.2%
Connecticut
State
Health
&
Educational
Facilities
Authority
,
Hartford
HealthCare
Obligated
Group,
Revenue,
2020
A,
4%,
7/01/40
..........
2,250,000
1,945,013
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/38
..........
2,200,000
1,946,053
Hartford
HealthCare
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
..........
6,000,000
4,875,519
Stamford
Hospital
Obligated
Group
(The),
Revenue,
M,
Refunding,
4%,
7/01/41
...
5,000,000
4,205,605
University
of
Hartford
(The),
Revenue,
2022
P,
5.375%,
7/01/52
...............
6,000,000
4,939,941
17,912,131
Delaware
0.1%
County
of
Kent
,
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/40
...........................
1,100,000
1,014,440
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/48
...........................
1,485,000
1,310,915
CHF-Dover
LLC,
Revenue,
2018
A,
5%,
7/01/53
...........................
1,100,000
952,793
Delaware
State
Economic
Development
Authority
,
Newark
Charter
School,
Inc.,
Revenue,
2021,
Refunding,
4%,
9/01/41
..........
1,600,000
1,323,470
Newark
Charter
School,
Inc.,
Revenue,
2021,
Refunding,
4%,
9/01/51
..........
3,300,000
2,488,677
7,090,295
Florida
8.4%
Alachua
County
Health
Facilities
Authority
,
Oak
Hammock
at
the
University
of
Florida
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
10/01/40
...........................................
2,500,000
1,917,702
Oak
Hammock
at
the
University
of
Florida
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
10/01/46
...........................................
1,750,000
1,235,511
Ave
Maria
Stewardship
Community
District
,
Assessment
,
Special
Assessment
,
2022
A
,
Refunding
,
4
%
,
5/01/42
.............................................
5,020,000
3,904,781
Babcock
Ranch
Community
Independent
Special
District
,
Assessment
Area
3A,
Special
Assessment,
2020,
4%,
5/01/40
................
1,840,000
1,515,551
Assessment
Area
3A,
Special
Assessment,
2020,
4%,
5/01/50
................
1,500,000
1,135,162
Brevard
County
Health
Facilities
Authority
,
Health
First,
Inc.
Obligated
Group,
Revenue,
2014,
Refunding,
5%,
4/01/39
......
5,000,000
5,009,599
Health
First,
Inc.
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
4/01/52
.....
10,000,000
9,376,620
Capital
Projects
Finance
Authority
,
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/31
......
1,500,000
1,501,671
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/32
......
1,100,000
1,099,168
CAPFA
Capital
Corp.
2000F,
Revenue,
2020
A-1,
Refunding,
5%,
10/01/35
......
1,000,000
978,884
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)
Florida
(continued)
Capital
Projects
Finance
Authority,
(continued)
Provident
Group
-
Continuum
Properties
LLC,
Revenue,
Senior
Lien,
2023
A-1,
5%,
11/01/53
.......................................................
$
2,125,000
$
1,918,004
Provident
Group
-
Continuum
Properties
LLC,
Revenue,
Senior
Lien,
2023
A-1,
5%,
11/01/58
.......................................................
2,000,000
1,780,477
Capital
Trust
Agency,
Inc.
,
f
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
22,800,000
17,537,634
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/31
.................
500,000
470,726
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/41
.................
325,000
268,027
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/51
.................
385,000
286,867
Lutz
Preparatory
School,
Inc.,
Revenue,
2021
A,
4%,
6/01/56
.................
485,000
351,115
f
SHI
-
Lake
Osborne
LLC,
Revenue,
144A,
2021
A-1,
3.68%,
1/01/57
...........
2,000,000
1,197,935
Central
Florida
Expressway
Authority
,
Revenue,
Senior
Lien,
2016
B,
Refunding,
4%,
7/01/39
.....................
5,000,000
4,352,807
Revenue,
Senior
Lien,
2016
B,
Refunding,
4%,
7/01/40
.....................
5,825,000
5,008,004
Revenue,
Senior
Lien,
2018,
5%,
7/01/48
................................
16,000,000
15,668,357
Centre
Lake
Community
Development
District
,
Special
Assessments,
Special
Assessment,
2021,
3%,
5/01/42
................
1,140,000
777,773
Special
Assessments,
Special
Assessment,
2021,
4%,
5/01/52
................
1,845,000
1,384,673
City
of
Atlantic
Beach
,
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/38
...................................................
1,105,000
989,451
Naval
Continuing
Care
Retirement
Foundation
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
...................................................
9,235,000
7,374,864
City
of
Cape
Coral
,
Water
&
Sewer
,
Revenue
,
2017
,
Refunding
,
5
%
,
10/01/39
......
10,000,000
10,044,731
City
of
Cocoa
,
Water
&
Sewer
,
Revenue
,
2018
B
,
5
%
,
10/01/48
.................
10,325,000
10,555,372
City
of
Fort
Myers
,
Utility
System
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
10/01/44
......
7,000,000
6,036,104
City
of
Gainesville
,
Utilities
System,
Revenue,
2017
A,
5%,
10/01/37
..........................
5,000,000
5,103,301
Utilities
System,
Revenue,
2019
A,
5%,
10/01/47
..........................
28,135,000
28,170,447
City
of
Jacksonville
,
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/01/45
..
5,000,000
3,923,022
Genesis
Health,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
5%,
11/01/50
..
20,000,000
18,353,152
City
of
Lakeland
,
Lakeland
Regional
Health
Systems
Obligated
Group
,
Revenue
,
2015
,
5
%
,
11/15/45
.....................................................
7,300,000
6,839,382
City
of
Melbourne
,
Water
&
Sewer,
Revenue,
2000
A,
FGIC
Insured,
ETM,
Zero
Cpn.,
10/01/26
......
1,500,000
1,338,079
Water
&
Sewer,
Revenue,
2002
B,
Refunding,
NATL
Insured,
Zero
Cpn.,
10/01/26
.
4,500,000
3,985,684
City
of
Miami
Beach
,
Revenue,
2015
A,
5%,
9/01/40
........................................
11,000,000
10,944,815
Stormwater,
Revenue,
2015,
5%,
9/01/41
................................
10,000,000
10,040,362
City
of
Palmetto
,
Renaissance
Arts
and
Education,
Inc.
,
Revenue
,
2022
A
,
Refunding
,
5.25
%
,
6/01/52
...................................................
3,000,000
2,751,612
City
of
Pompano
Beach
,
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/50
........................................................
4,730,000
3,197,085
John
Knox
Village
of
Florida,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
9/01/56
.
10,150,000
6,567,144
City
of
South
Miami
Health
Facilities
Authority,
Inc.
,
Baptist
Health
South
Florida
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/47
........................................................
5,750,000
4,618,641
Baptist
Health
South
Florida
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
8/15/47
........................................................
7,845,000
7,476,175
City
of
St.
Petersburg
,
Public
Utility
,
Revenue
,
2018
,
Refunding
,
4
%
,
10/01/43
......
15,000,000
12,893,744
City
of
Tampa
,
H
Lee
Moffitt
Cancer
Center
&
Research
Institute
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
7/01/37
.........................................
5,000,000
4,911,923
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Florida
(continued)
City
of
Tampa,
(continued)
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/35
............
$
755,000
$
393,318
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/36
............
800,000
386,255
State
of
Florida
Cigarette
Tax,
Revenue,
2020
A,
Zero
Cpn.,
9/01/37
............
800,000
356,641
County
of
Broward
,
Port
Facilities
,
Revenue,
Senior
Lien
,
2019
B
,
4
%
,
9/01/49
.....
15,000,000
12,027,333
County
of
Lee
,
Airport
,
Revenue
,
2021
B
,
4
%
,
10/01/38
.......................
7,435,000
6,518,318
County
of
Miami-Dade
,
Aviation,
Revenue,
2014
B,
Refunding,
5%,
10/01/37
.......................
5,000,000
4,945,925
Aviation,
Revenue,
2020
A,
Refunding,
4%,
10/01/41
.......................
4,950,000
4,386,260
Seaport
Department,
Revenue,
Senior
Lien,
2022
A,
Refunding,
5.25%,
10/01/52
..
6,000,000
5,776,681
Transit
System,
Revenue,
2015,
Refunding,
5%,
7/01/35
....................
7,000,000
7,079,526
Transit
System,
Revenue,
2018,
5%,
7/01/43
.............................
10,000,000
10,042,400
Transit
System,
Revenue,
2018,
4%,
7/01/47
.............................
5,000,000
4,189,124
Transit
System,
Revenue,
2020
A,
4%,
7/01/48
...........................
5,000,000
4,109,575
Water
&
Sewer
System,
Revenue,
2019
B,
4%,
10/01/49
....................
27,500,000
22,581,807
County
of
Monroe
,
Airport,
Revenue,
2022,
5.25%,
10/01/47
................................
1,000,000
938,330
Airport,
Revenue,
2022,
5%,
10/01/52
..................................
1,500,000
1,342,382
County
of
Osceola
,
Transportation
,
Revenue
,
2019
A-1
,
Refunding
,
5
%
,
10/01/49
...
4,500,000
4,092,846
Crystal
Cay
Community
Development
District
,
Special
Assessment
,
2021
,
4
%
,
5/01/51
1,000,000
755,196
Cypress
Mill
Community
Development
District
,
Special
Assessments,
Special
Assessment,
2023,
5%,
5/01/43
................
560,000
495,875
Special
Assessments,
Special
Assessment,
2023,
5%,
5/01/53
................
1,000,000
832,436
f
Downtown
Doral
South
Community
Development
District
,
Assessment
Area
2
,
Special
Assessment
,
144A,
2018
,
5
%
,
12/15/48
.................................
4,000,000
3,456,925
f
Epperson
North
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
144A,
2018
A-1
,
5.5
%
,
11/01/39
.............................
1,500,000
1,440,667
Escambia
County
Health
Facilities
Authority
,
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/36
.
4,165,000
4,046,008
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/37
.
6,000,000
5,711,444
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
8/15/40
.
4,000,000
3,686,222
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/45
.
19,465,000
15,230,555
Baptist
Hospital,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
8/15/50
.
18,985,000
14,335,573
Florida
Development
Finance
Corp.
,
River
City
Education
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/35
..........
325,000
287,686
River
City
Education
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/45
..........
600,000
451,622
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/33
....................................................
1,350,000
1,279,848
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/39
....................................................
5,350,000
4,606,830
Shands
Jacksonville
Medical
Center
Obligated
Group,
Revenue,
2022
A,
Refunding,
5%,
2/01/52
....................................................
7,000,000
5,573,867
Florida
Housing
Finance
Corp.
,
Revenue
,
2020-1
,
GNMA
Insured
,
2.75
%
,
7/01/50
...
1,410,000
927,676
Fort
Pierce
Utilities
Authority
,
Revenue
,
1999
B
,
AMBAC
Insured
,
Zero
Cpn.,
10/01/24
2,560,000
2,461,717
Greater
Orlando
Aviation
Authority
,
Revenue,
2017
A,
5%,
10/01/47
.......................................
10,925,000
10,304,757
Revenue,
2019
A,
4%,
10/01/49
.......................................
15,000,000
11,964,950
Halifax
Hospital
Medical
Center
,
Halifax
Hospital
Medical
Center
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
6/01/36
.................................
2,500,000
2,411,417
Heritage
Harbour
North
Community
Development
District
,
Special
Assessment
,
2014
,
5.125
%
,
5/01/45
...................................................
2,170,000
1,956,854
Herons
Glen
Recreation
District
,
Special
Assessment,
2020,
Refunding,
BAM
Insured,
4%,
5/01/45
.............
1,515,000
1,294,905
Special
Assessment,
2020,
Refunding,
BAM
Insured,
4%,
5/01/50
.............
1,800,000
1,485,689
Hillsborough
County
Aviation
Authority
,
Revenue,
2015
A,
5%,
10/01/44
.......................................
5,000,000
4,916,993
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)
Hillsborough
County
Aviation
Authority,
(continued)
Revenue,
2018
E,
5%,
10/01/48
.......................................
$
5,000,000
$
4,727,605
Hillsborough
County
Industrial
Development
Authority
,
Florida
Health
Sciences
Center,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
4
%
,
8/01/50
.......................
6,500,000
5,100,739
Hollywood
Beach
Community
Development
District
I
,
Special
Assessment
,
2020
,
Refunding
,
4
%
,
10/01/45
............................................
4,000,000
3,212,510
Lee
County
Industrial
Development
Authority
,
Shell
Point
Obligated
Group
,
Revenue
,
2019
,
5
%
,
11/15/44
................................................
6,360,000
5,633,224
f
Leon
County
Housing
Finance
Authority
,
Revenue
,
144A,
2022
A
,
Zero
Cpn.,
5/01/57
27,000,000
22,126,500
Miami
Beach
Redevelopment
Agency
,
Tax
Allocation,
2015
A,
Refunding,
AGMC
Insured,
5%,
2/01/40
...............
5,000,000
5,001,895
Tax
Allocation,
2015
A
2015
B,
Refunding,
AGMC
Insured,
5%,
2/01/44
.........
12,000,000
12,000,390
Miami-Dade
County
Expressway
Authority
,
Revenue,
2013
A,
Refunding,
5%,
7/01/29
...............................
10,000,000
10,004,560
Revenue,
2013
A,
Refunding,
5%,
7/01/32
...............................
6,375,000
6,378,011
Revenue,
A,
Refunding,
5%,
7/01/40
...................................
49,035,000
47,453,249
Miami-Dade
County
Health
Facilities
Authority
,
Variety
Children's
Hospital
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
4
%
,
8/01/47
...........................
3,500,000
2,868,617
Mid-Bay
Bridge
Authority
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
10/01/40
............
5,000,000
4,714,651
Middleton
Community
Development
District
A
,
Special
Assessment
,
2022
,
6.2
%
,
5/01/53
.........................................................
5,000,000
4,909,447
North
Sumter
County
Utility
Dependent
District
,
Revenue,
Senior
Lien,
2019,
BAM
Insured,
5%,
10/01/44
....................
4,000,000
3,980,437
Revenue,
Senior
Lien,
2019,
5%,
10/01/49
...............................
3,635,000
3,419,817
Revenue,
Senior
Lien,
2019,
5%,
10/01/54
...............................
7,000,000
6,490,611
Palm
Beach
County
Educational
Facilities
Authority
,
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/41
.......................................................
3,695,000
2,946,828
Palm
Beach
Atlantic
University
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
10/01/46
.......................................................
7,570,000
5,665,791
Palm
Beach
County
Health
Facilities
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
B,
4%,
11/15/41
.......................................................
500,000
401,590
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
B,
5%,
11/15/42
.......................................................
1,000,000
916,039
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
B,
5%,
5/15/36
....
1,235,000
1,043,870
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
B,
5%,
5/15/41
....
5,060,000
3,939,925
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
B,
5%,
5/15/47
....
105,000
77,008
Pine
Ridge
Plantation
Community
Development
District
,
Special
Assessment,
Senior
Lien,
2020
A-1,
Refunding,
AGMC
Insured,
2.625%,
5/01/34
........................................................
1,200,000
922,313
Special
Assessment,
Senior
Lien,
2020
A-1,
Refunding,
AGMC
Insured,
2.8%,
5/01/37
........................................................
995,000
712,170
Poitras
East
Community
Development
District
,
Special
Assessment
,
2023
,
5.25
%
,
5/01/52
.........................................................
2,500,000
2,214,493
Reunion
West
Community
Development
District
,
Assessment
Area
1
,
Special
Assessment
,
2022
,
Refunding
,
3
%
,
5/01/36
..............................
1,250,000
975,045
River
Hall
Community
Development
District
,
Assessment
Area
,
Special
Assessment
,
2021
A-1
,
Refunding
,
3
%
,
5/01/36
.....................................
750,000
559,341
Sarasota
County
Health
Facilities
Authority
,
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/37
........................................................
2,350,000
2,096,620
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/42
........................................................
1,600,000
1,350,684
Southwest
Florida
Retirement
Center,
Inc.
Obligated
Group,
Revenue,
2017
A,
5%,
1/01/47
........................................................
2,450,000
1,995,291
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/33
..............
600,000
572,812
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)
Sarasota
County
Health
Facilities
Authority,
(continued)
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/38
..............
$
1,025,000
$
923,716
Sunnyside
Village
Obligated
Group,
Revenue,
2018,
5%,
5/15/48
..............
1,850,000
1,508,010
Sarasota
County
Public
Hospital
District
,
Obligated
Group,
Revenue,
2022,
4%,
7/01/52
............................
15,000,000
11,999,733
Sarasota
County
Public
Hospital
District
Obligated
Group,
Revenue,
2018,
4%,
7/01/48
........................................................
10,000,000
8,243,033
South
Broward
Hospital
District
,
South
Broward
Hospital
District
Obligated
Group
,
Revenue
,
2018
,
5
%
,
5/01/45
.........................................
20,715,000
20,253,515
South
Fork
East
Community
Development
District
,
Assessments,
Special
Assessment,
2021,
Refunding,
3%,
5/01/26
.............
100,000
95,970
Assessments,
Special
Assessment,
2021,
Refunding,
3%,
5/01/31
.............
246,000
214,146
Assessments,
Special
Assessment,
2021,
Refunding,
3%,
5/01/38
.............
597,000
441,350
St.
Johns
County
Industrial
Development
Authority
,
Presbyterian
Retirement
Communities,
Inc.
Obligated
Group
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
8/01/55
...
7,250,000
5,122,921
State
of
Florida
,
GO
,
2016
F
,
Refunding
,
4
%
,
6/01/37
........................
8,000,000
7,598,819
Tampa
Sports
Authority
,
Revenue
,
1995
,
NATL
Insured
,
6.1
%
,
10/01/26
...........
1,460,000
1,510,066
Timber
Creek
Southwest
Community
Development
District
,
Special
Assessment,
2020,
4%,
6/15/40
.................................
1,000,000
796,286
Special
Assessment,
2020,
4%,
6/15/50
.................................
2,000,000
1,419,798
Tohopekaliga
Water
Authority
,
Revenue
,
2016
,
Refunding
,
5
%
,
10/01/46
..........
5,000,000
5,077,185
Tohoqua
Community
Development
District
,
Special
Assessment
,
2021
,
4
%
,
5/01/51
.
1,175,000
827,227
Touchstone
Community
Development
District
,
Special
Assessments
,
Special
Assessment,
Senior
Lien
,
2022
A-1
,
5.5
%
,
5/01/53
.........................
1,800,000
1,701,978
Town
of
Palm
Beach
,
GO
,
2018
,
4
%
,
7/01/43
..............................
5,000,000
4,425,357
University
of
North
Florida
Financing
Corp.
(The)
,
University
of
North
Florida
Dormitory
Facilities
,
Revenue
,
2016
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/35
............
5,000,000
5,084,303
f
Village
Community
Development
District
No.
15
,
Special
Assessment,
144A,
2023,
5%,
5/01/43
............................
1,500,000
1,399,088
Special
Assessment,
144A,
2023,
5.25%,
5/01/54
.........................
6,075,000
5,599,652
Volusia
County
Educational
Facility
Authority
,
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2017,
Refunding,
5%,
10/15/47
5,000,000
4,853,590
Embry-Riddle
Aeronautical
University,
Inc.,
Revenue,
2020
A,
Refunding,
5%,
10/15/49
.......................................................
3,000,000
2,898,967
Wildwood
Utility
Dependent
District
,
Revenue
,
2023
,
AGMC
Insured
,
5.5
%
,
10/01/53
.
6,970,000
7,138,655
707,420,019
Georgia
4.3%
Atlanta
Development
Authority
(The)
,
City
of
Atlanta
Hotel
Motel
Tax,
Revenue,
2015
A-1,
5.25%,
7/01/44
............
3,000,000
3,003,558
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/24
..
6,385,000
6,383,218
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/25
..
6,955,000
6,955,969
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/26
..
5,000,000
5,004,635
Tuff
Yamacraw
LLC,
Revenue,
2005
A,
Refunding,
AMBAC
Insured,
5%,
1/01/27
..
5,000,000
5,018,454
Brookhaven
Development
Authority
,
Children's
Healthcare
of
Atlanta
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
15,040,000
12,680,319
City
of
Atlanta
,
Airport
Passenger
Facility
Charge,
Revenue,
2023
E,
5.25%,
7/01/43
...........
4,250,000
4,255,403
Airport
Passenger
Facility
Charge,
Revenue,
Sub.
Lien,
2019
D,
4%,
7/01/36
.....
15,800,000
14,480,954
Water
&
Wastewater,
Revenue,
2015,
Refunding,
5%,
11/01/40
...............
29,500,000
29,356,043
Water
&
Wastewater,
Revenue,
2018
A,
Refunding,
5%,
11/01/40
..............
4,655,000
4,672,866
Water
&
Wastewater,
Revenue,
2018
B,
Refunding,
5%,
11/01/47
..............
4,845,000
4,827,348
Cobb
County
Kennestone
Hospital
Authority
,
WellStar
Health
System
Obligated
Group
,
Revenue
,
2020
B
,
Refunding
,
4
%
,
4/01/41
...............................
50,000
43,596
h
Columbia
County
Hospital
Authority
,
WellStar
Health
System
Obligated
Group
,
Revenue
,
2023
A
,
5.125
%
,
4/01/53
....................................
1,875,000
1,825,087
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Georgia
(continued)
Coweta
County
Development
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
5
%
,
7/01/44
...............................
$
10,000,000
$
9,588,001
Development
Authority
for
Fulton
County
,
Piedmont
Healthcare,
Inc.
Obligated
Group
,
Revenue
,
2019
A
,
4
%
,
7/01/49
........................................
20,000,000
16,175,016
Development
Authority
of
Burke
County
(The)
,
Oglethorpe
Power
Corp.,
Revenue,
2017
C,
Refunding,
4.125%,
11/01/45
.......
2,500,000
1,958,310
Oglethorpe
Power
Corp.,
Revenue,
2017
D,
Refunding,
4.125%,
11/01/45
.......
18,500,000
14,491,490
f
Development
Authority
of
Rockdale
County
,
AHPC
Terraces
at
Fieldstone
LLC
,
Revenue
,
144A,
2021
A-1
,
3.5
%
,
12/01/36
...............................
39,080,000
29,166,795
Fayette
County
Hospital
Authority
,
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2014
A,
Refunding,
5%,
7/01/39
........................................................
6,420,000
6,298,297
Piedmont
Healthcare,
Inc.
Obligated
Group,
Revenue,
2016
A,
5%,
7/01/46
......
15,000,000
14,480,512
Fulton
County
Residential
Care
Facilities
for
the
Elderly
Authority
,
Lenbrook
Square
Foundation
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
7/01/42
..........
5,000,000
4,366,484
Glynn-Brunswick
Memorial
Hospital
Authority
,
Southeast
Georgia
Health
System
Obligated
Group
,
Revenue
,
2017
,
5
%
,
8/01/47
............................
2,250,000
1,978,188
Main
Street
Natural
Gas,
Inc.
,
Revenue,
2007
A,
5.5%,
9/15/28
......................................
5,000,000
5,097,269
Revenue,
2021
C,
4%,
12/01/28
.......................................
4,500,000
4,259,318
e
Revenue,
2021
C,
Mandatory
Put,
4%,
12/01/28
...........................
16,500,000
15,478,332
e
Revenue,
2022
A,
Mandatory
Put,
4%,
12/01/29
...........................
14,500,000
13,488,062
e,f
Revenue,
144A,
2022
C,
Mandatory
Put,
4%,
11/01/27
......................
49,155,000
45,790,227
e
Revenue,
2023
D,
Mandatory
Put,
5%,
12/01/30
...........................
33,595,000
33,021,577
e
Revenue,
2023
E-1,
Mandatory
Put,
5%,
6/01/31
..........................
20,000,000
19,860,548
Municipal
Electric
Authority
of
Georgia
,
Revenue,
2021
A,
Refunding,
5%,
1/01/63
...............................
7,920,000
7,166,754
Revenue,
2022
A,
5.5%,
7/01/63
......................................
2,500,000
2,413,362
Revenue,
2023
A,
5.5%,
7/01/64
......................................
5,000,000
4,825,593
Private
Colleges
&
Universities
Authority
,
Emory
University
,
Revenue
,
2013
A
,
5
%
,
10/01/43
........................................................
10,000,000
9,999,568
358,411,153
Hawaii
1.2%
City
&
County
Honolulu
,
Wastewater
System
,
Revenue,
Senior
Lien
,
2018
A
,
5
%
,
7/01/47
.........................................................
25,000,000
25,158,758
State
of
Hawaii
,
Airports
System,
Revenue,
2018
A,
5%,
7/01/43
...........................
20,805,000
20,165,238
Airports
System,
Revenue,
2018
A,
5%,
7/01/48
...........................
21,315,000
20,158,836
Airports
System,
Revenue,
2022
A,
4%,
7/01/47
...........................
10,000,000
8,111,333
Airports
System,
Revenue,
2022
A,
5%,
7/01/47
...........................
12,500,000
11,841,482
Department
of
Budget
&
Finance,
Revenue,
2019,
Refunding,
3.2%,
7/01/39
.....
10,000,000
6,420,341
Department
of
Budget
&
Finance,
Revenue,
2019,
3.5%,
10/01/49
.............
17,035,000
10,018,604
101,874,592
Idaho
0.2%
Idaho
Health
Facilities
Authority
,
St.
Luke's
Health
System
Ltd.
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
3/01/37
........................................................
7,750,000
7,569,643
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2019
ID,
4%,
12/01/43
.........
6,000,000
5,139,586
Idaho
Housing
&
Finance
Association
,
White
Pine
Charter
School,
Inc.,
Revenue,
2023
A,
5.5%,
5/01/43
.............
350,000
336,567
White
Pine
Charter
School,
Inc.,
Revenue,
2023
A,
5.75%,
5/01/48
.............
525,000
505,661
White
Pine
Charter
School,
Inc.,
Revenue,
2023
A,
5.75%,
5/01/58
.............
1,000,000
951,021
14,502,478
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
5.7%
Chicago
Board
of
Education
,
Dedicated
Capital
Improvement
Tax
,
Revenue
,
2023
,
5.75
%
,
4/01/48
...................................................
$
20,000,000
$
20,113,224
Chicago
Midway
International
Airport
,
Revenue,
1998
C,
Refunding,
AGMC,
NATL
RE
Insured,
5.5%,
1/01/24
.........
3,500,000
3,508,314
Revenue,
Second
Lien,
2016
B,
Refunding,
5%,
1/01/46
....................
10,000,000
9,749,027
i
Revenue,
Senior
Lien,
2023
A,
Refunding,
BAM
Insured,
5.5%,
1/01/53
.........
6,000,000
6,037,489
Chicago
O'Hare
International
Airport
,
Revenue,
Senior
Lien,
2016
D,
5.25%,
1/01/42
............................
10,000,000
9,973,197
Revenue,
Senior
Lien,
2016
D,
5%,
1/01/47
..............................
18,000,000
17,692,583
Revenue,
Senior
Lien,
2017
D,
Refunding,
5%,
1/01/52
.....................
6,335,000
5,850,072
Revenue,
Senior
Lien,
2018
A,
Refunding,
5%,
1/01/53
.....................
10,000,000
9,207,109
Revenue,
Senior
Lien,
2022
A,
5%,
1/01/55
..............................
36,500,000
33,529,787
Chicago
Park
District
,
GO,
2020
C,
BAM
Insured,
4%,
1/01/41
.................................
1,400,000
1,190,485
GO,
2020
C,
BAM
Insured,
4%,
1/01/42
.................................
4,300,000
3,605,652
GO,
2020
D,
BAM
Insured,
4%,
1/01/37
.................................
1,000,000
895,465
GO,
2020
D,
BAM
Insured,
4%,
1/01/38
.................................
1,000,000
882,788
GO,
2020
D,
BAM
Insured,
4%,
1/01/39
.................................
1,000,000
871,616
GO,
2020
F-2,
Refunding,
4%,
1/01/36
..................................
1,250,000
1,136,521
GO,
2020
F-2,
Refunding,
5%,
1/01/40
..................................
1,625,000
1,622,554
Chicago
Transit
Authority
Sales
Tax
Receipts
Fund
,
Revenue,
Second
Lien
,
2022
A
,
Refunding
,
5
%
,
12/01/57
............................................
15,000,000
13,890,516
City
of
Chicago
,
GO,
2023
A,
5.5%,
1/01/39
...........................................
1,050,000
1,062,794
GO,
2023
A,
5.5%,
1/01/40
...........................................
1,300,000
1,311,084
City
of
Galesburg
,
Knox
College
,
Revenue
,
2021
A
,
Refunding
,
4
%
,
10/01/46
......
7,000,000
5,267,501
City
of
Granite
City
,
Waste
Management
of
Illinois,
Inc.
,
Revenue
,
2002
,
1.25
%
,
5/01/27
.........................................................
5,750,000
5,038,931
Illinois
Finance
Authority
,
Bradley
University,
Revenue,
2021
A,
Refunding,
4%,
8/01/46
................
2,250,000
1,748,551
Bradley
University,
Revenue,
2021
A,
Refunding,
4%,
8/01/51
................
4,650,000
3,466,830
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
A,
4%,
5/15/41
.........
3,480,000
1,574,700
Christian
Homes,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
3.25%,
5/15/27
........................................................
1,845,000
834,863
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/41
..............................
750,000
619,056
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/51
..............................
1,000,000
752,713
Lawndale
Educational
&
Regional
Network
Charter
School
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
11/01/56
..............................
750,000
548,259
Mercy
Health
Corp.
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
12/01/46
...
30,000,000
28,337,196
Illinois
Housing
Development
Authority
,
Revenue
,
2022
G
,
GNMA
Insured
,
5
%
,
10/01/46
........................................................
3,500,000
3,371,137
Macon
County
School
District
No.
61
Decatur
,
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/40
.......................
3,700,000
3,205,099
GO,
2020
C,
Refunding,
AGMC
Insured,
4%,
1/01/45
.......................
3,125,000
2,648,732
Metropolitan
Pier
&
Exposition
Authority
,
Revenue,
1996,
ETM,
7%,
7/01/26
.....................................
4,835,000
5,040,356
Revenue,
2002
A,
NATL
Insured,
Zero
Cpn.,
12/15/37
......................
10,000,000
4,790,922
Revenue,
2020
A,
Refunding,
5%,
6/15/50
...............................
8,500,000
7,904,170
Revenue,
2022
A,
Refunding,
4%,
12/15/42
..............................
500,000
414,989
Revenue,
2022
A,
Refunding,
4%,
12/15/47
..............................
365,000
289,355
Revenue,
2022
A,
Refunding,
4%,
6/15/52
...............................
36,000,000
27,731,621
Southwestern
Illinois
Development
Authority
,
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn.,
12/01/24
..................................
1,370,000
1,304,259
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Illinois
(continued)
Southwestern
Illinois
Development
Authority,
(continued)
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
ETM,
Zero
Cpn.,
12/01/24
.............................
$
2,480,000
$
2,373,764
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
Zero
Cpn.,
12/01/26
..................................
2,465,000
2,142,998
Madison
County
Community
Unit
School
District
No.
7
Edwardsville,
Revenue,
2007,
AGMC
Insured,
ETM,
Zero
Cpn.,
12/01/26
.............................
5,235,000
4,627,262
State
of
Illinois
,
GO,
2016,
5%,
11/01/35
.............................................
1,000,000
1,000,085
GO,
2017
A,
5%,
12/01/36
...........................................
6,070,000
6,065,939
GO,
2017
A,
4.25%,
12/01/40
.........................................
3,150,000
2,743,589
GO,
2017
D,
5%,
11/01/28
...........................................
6,425,000
6,570,579
GO,
2019
A,
5%,
11/01/28
...........................................
10,000,000
10,300,017
GO,
2019
B,
4%,
11/01/34
...........................................
2,600,000
2,407,551
GO,
2019
C,
4%,
11/01/40
...........................................
2,500,000
2,110,816
GO,
2019
C,
4%,
11/01/43
...........................................
4,190,000
3,448,941
GO,
2020,
5.75%,
5/01/45
...........................................
7,965,000
8,128,074
GO,
2020
C,
4%,
10/01/37
...........................................
3,685,000
3,260,171
GO,
2020
C,
4%,
10/01/38
...........................................
9,750,000
8,487,071
GO,
2020
C,
4%,
10/01/39
...........................................
4,585,000
3,931,395
GO,
2020
C,
4%,
10/01/41
...........................................
3,010,000
2,525,524
GO,
2021
A,
4%,
3/01/38
............................................
5,000,000
4,398,357
GO,
2021
B,
5%,
3/01/25
............................................
4,500,000
4,537,026
GO,
2022
B,
5%,
10/01/30
...........................................
14,650,000
15,156,370
GO,
2022
B,
5%,
10/01/31
...........................................
26,500,000
27,407,932
GO,
2022
C,
5%,
10/01/38
...........................................
15,000,000
14,822,290
GO,
2022
C,
5.5%,
10/01/40
.........................................
18,050,000
18,474,244
GO,
2022
C,
5.5%,
10/01/41
.........................................
10,000,000
10,193,851
GO,
2022
C,
5.5%,
10/01/44
.........................................
16,000,000
16,186,077
GO,
2023
B,
5.5%,
5/01/47
..........................................
2,500,000
2,514,520
Sales
Tax,
Revenue,
2016
C,
Refunding,
4%,
6/15/26
......................
5,000,000
4,951,247
Tri-County
River
Valley
Development
Authority
,
Cedars
of
Lebanon
Affordable
LLC,
Revenue,
2021
A,
Pre-Refunded,
3.75%,
12/01/36
.......................................................
10,030,000
9,904,770
Cedars
of
Lebanon
Affordable
LLC,
Revenue,
2021
B,
Pre-Refunded,
5.75%,
12/01/36
.......................................................
785,000
775,812
f
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
5,655,666
2018
IAVF
Timber
Oaks
&
Prairie
View
Obligated
Group,
Revenue,
144A,
2020
A,
Refunding,
4.5%,
12/01/50
.........................................
34,795,000
24,188,249
476,309,704
Indiana
2.5%
City
of
Whiting
,
BP
Products
North
America,
Inc.
,
Revenue
,
2021
,
3
%
,
11/01/51
.....
10,000,000
6,245,157
Hammond
Multi-School
Building
Corp.
,
Hammond
School
City
,
Revenue
,
2018
,
5
%
,
7/15/38
.........................................................
3,000,000
2,977,413
Indiana
Finance
Authority
,
BHI
Senior
Living
Obligated
Group,
Revenue,
2016
A,
5.25%,
11/15/46
.........
11,955,000
10,625,152
BHI
Senior
Living
Obligated
Group,
Revenue,
2018
A,
5%,
11/15/53
............
15,000,000
12,436,991
BHI
Senior
Living
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/41
...
7,250,000
5,685,504
CHF
-
Tippecanoe
LLC,
Revenue,
2023
A,
5%,
6/01/53
.....................
2,300,000
2,067,986
CHF
-
Tippecanoe
LLC,
Revenue,
2023
A,
5.125%,
6/01/58
..................
1,650,000
1,493,545
CHF
-
Tippecanoe
LLC,
Revenue,
2023
A,
5.375%,
6/01/64
..................
6,010,000
5,560,000
Citizens
Wastewater
of
Westfield
LLC,
Revenue,
2019
A,
Refunding,
5%,
10/01/48
16,665,000
16,598,225
CWA
Authority,
Inc.,
Revenue,
First
Lien,
2012
A,
4%,
10/01/42
...............
24,690,000
21,236,701
Greencroft
Goshen
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/43
..
7,000,000
4,938,228
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Indiana
(continued)
Indiana
Finance
Authority,
(continued)
Greencroft
Goshen
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
11/15/51
..
$
3,000,000
$
1,929,954
Greencroft
Goshen
Obligated
Group,
Revenue,
2023
A,
Refunding,
4%,
11/15/37
..
5,000,000
3,899,324
Indianapolis
Power
&
Light
Co.,
Revenue,
2021
A,
Refunding,
1.4%,
8/01/29
.....
5,000,000
4,062,078
Marion
County
Capital
Improvement
Board,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/37
........................................................
10,000,000
10,155,469
Ohio
Valley
Electric
Corp.,
Revenue,
2010
B,
2.5%,
11/01/30
.................
3,925,000
3,353,659
University
of
Evansville,
Revenue,
2022
A,
Refunding,
5.25%,
9/01/57
..........
10,000,000
8,156,488
Indiana
Municipal
Power
Agency
,
Revenue,
2016
A,
Refunding,
4%,
1/01/42
...............................
5,860,000
5,015,378
Revenue,
2016
A,
Refunding,
5%,
1/01/42
...............................
20,000,000
19,932,106
Indiana
University
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
6/01/45
..................
6,500,000
5,555,661
Indianapolis
Local
Public
Improvement
Bond
Bank
,
Revenue,
2017
C,
Refunding,
5%,
1/01/40
...............................
15,000,000
15,203,154
Revenue,
2019
A,
4%,
2/01/44
........................................
3,000,000
2,572,542
Revenue,
2019
A,
5%,
2/01/49
........................................
41,970,000
41,937,494
211,638,209
Iowa
0.8%
Iowa
Finance
Authority
,
Iowa
Fertilizer
Co.
LLC,
Revenue,
2022,
Refunding,
5%,
12/01/50
.............
9,650,000
8,565,474
Iowa
Health
System
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
2/15/48
..
7,500,000
6,890,543
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
A,
5%,
5/15/36
....
1,400,000
1,183,334
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2016
A,
5%,
5/15/41
....
3,600,000
2,803,109
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2018
A,
5%,
5/15/48
....
3,225,000
2,346,259
e
Lifespace
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
Mandatory
Put,
4.267%,
5/15/26
.....................................
8,250,000
7,547,851
Iowa
Tobacco
Settlement
Authority
,
Revenue,
2021
A-2,
1,
Refunding,
4%,
6/01/49
............................
20,730,000
16,978,469
Revenue,
2021
B-1,
2,
Refunding,
4%,
6/01/49
...........................
21,765,000
19,421,149
65,736,188
Kansas
0.3%
Wyandotte
County-Kansas
City
Unified
Government
,
Utility
System,
Revenue,
2016
C,
Refunding,
5%,
9/01/41
...................
5,000,000
5,007,814
Utility
System,
Revenue,
2016
C,
Refunding,
5%,
9/01/46
...................
16,565,000
16,569,239
21,577,053
Kentucky
1.9%
Campbell
Kenton
&
Boone
Counties
Sanitation
District
No.
1
,
Revenue
,
2019
,
Refunding
,
4
%
,
8/01/34
.............................................
4,310,000
4,140,649
City
of
Hazard
,
Appalachian
Regional
Healthcare
Obligated
Group
,
Revenue
,
2021
,
Refunding
,
3
%
,
7/01/46
.............................................
2,000,000
1,265,219
City
of
Owensboro
,
Water
,
Revenue
,
2018
,
Refunding
,
BAM
Insured
,
4
%
,
9/15/45
...
5,000,000
4,196,254
County
of
Boyle
,
Centre
College
of
Kentucky
,
Revenue
,
2017
,
5
%
,
6/01/37
........
2,000,000
2,008,752
County
of
Carroll
,
Kentucky
Utilities
Co.,
Revenue,
2008
A,
Refunding,
2%,
2/01/32
..............
3,000,000
2,217,452
e
Kentucky
Utilities
Co.,
Revenue,
2016
A,
Refunding,
Mandatory
Put,
1.55%,
9/01/26
2,000,000
1,760,319
County
of
Warren
,
Bowling
Green-Warren
County
Community
Hospital
Corp.
,
Revenue
,
2012
A
,
5
%
,
10/01/33
...............................................
1,000,000
999,205
Fayette
County
School
District
Finance
Corp.
,
Fayette
County
School
District,
Revenue,
2015
D,
5%,
8/01/34
................
1,985,000
1,997,630
Fayette
County
School
District,
Revenue,
2018
A,
4%,
5/01/38
................
1,000,000
871,153
Hopkins
County
School
District
Finance
Corp.
,
Revenue
,
2021
,
2
%
,
2/01/41
.......
2,340,000
1,405,181
Kentucky
Bond
Development
Corp.
,
Revenue,
2018
A,
5%,
9/01/48
........................................
2,500,000
2,359,233
Centre
College
of
Kentucky,
Revenue,
2021,
4%,
6/01/51
....................
1,350,000
1,063,354
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)
Kentucky
(continued)
Kentucky
Bond
Development
Corp.,
(continued)
Transylvania
University,
Revenue,
2019
B,
4%,
3/01/49
.....................
$
2,500,000
$
1,837,229
Transylvania
University,
Revenue,
2021
A,
Refunding,
4%,
3/01/46
.............
735,000
553,675
Transylvania
University,
Revenue,
2021
A,
Refunding,
4%,
3/01/49
.............
330,000
242,514
Kentucky
Economic
Development
Finance
Authority
,
CommonSpirit
Health
Obligated
Group
,
Revenue
,
2019
A-2
,
Refunding
,
5
%
,
8/01/49
........................
21,200,000
19,489,217
Kentucky
Municipal
Power
Agency
,
Revenue,
2015
A,
Refunding,
NATL
Insured,
5%,
9/01/42
....................
10,000,000
8,988,308
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/35
....................
7,750,000
7,547,903
Revenue,
2016
A,
Refunding,
NATL
Insured,
5%,
9/01/36
....................
8,015,000
7,661,922
Revenue,
2019
A,
Refunding,
4%,
9/01/45
...............................
2,000,000
1,557,326
e
Kentucky
Public
Energy
Authority
,
Revenue,
2019
C,
Mandatory
Put,
4%,
2/01/28
...........................
37,000,000
35,116,219
Revenue,
2022
A-2,
Mandatory
Put,
4.758%,
8/01/30
.......................
5,000,000
4,792,348
Kentucky
Rural
Water
Finance
Corp.
,
Revenue
,
2001
A
,
5
%
,
2/01/26
.............
125,000
125,109
Kentucky
State
Property
&
Building
Commission
,
Kentucky
Finance
and
Administration
Cabinet
,
Revenue
,
5
%
,
4/01/38
.......................................
2,500,000
2,531,058
Kentucky
Turnpike
Authority
,
Kentucky
Transportation
Cabinet
,
Revenue
,
2015
A
,
Refunding
,
5
%
,
7/01/33
.............................................
3,000,000
3,030,239
Lewis
County
School
District
Finance
Corp.
,
Revenue
,
2021
,
2
%
,
2/01/41
.........
2,000,000
1,260,331
Louisville
and
Jefferson
County
,
Metropolitan
Sewer
District,
Revenue,
2017
A,
4%,
5/15/48
..................
2,750,000
2,247,511
Metropolitan
Sewer
District,
Revenue,
2018
A,
Refunding,
4%,
5/15/38
..........
5,000,000
4,477,481
Louisville/Jefferson
County
Metropolitan
Government
,
Bellarmine
University,
Inc.,
Revenue,
2015,
Refunding,
5%,
5/01/31
............
2,000,000
1,889,716
Bellarmine
University,
Inc.,
Revenue,
2017
A,
Refunding,
5%,
5/01/36
..........
2,715,000
2,407,494
Louisville
Gas
and
Electric
Co.,
Revenue,
2003
A,
Refunding,
2%,
10/01/33
......
4,000,000
2,950,697
Norton
Healthcare
Obligated
Group,
Revenue,
2020
A,
4%,
10/01/39
...........
4,000,000
3,436,706
Morehead
State
University
,
Revenue
,
2014
A
,
Refunding
,
5
%
,
10/01/28
...........
1,910,000
1,917,109
Paducah
Electric
Plant
Board
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
10/01/34
........................................................
5,700,000
5,788,367
Scott
County
School
District
Finance
Corp.
,
Scott
County
Board
of
Education
,
Revenue
,
2018
,
4
%
,
6/01/38
.........................................
1,615,000
1,428,625
Shelby
County
School
District
Finance
Corp.
,
Shelby
County
Public
School
District
,
Revenue
,
2018
,
4
%
,
8/01/38
.........................................
3,465,000
2,995,202
University
of
Kentucky
,
Revenue,
2014
A,
4%,
4/01/44
........................................
2,250,000
1,920,319
Revenue,
2018
A,
4%,
10/01/32
.......................................
3,250,000
3,132,195
University
of
Louisville
,
Revenue
,
2016
D
,
5
%
,
3/01/30
.......................
4,140,000
4,207,347
157,816,568
Louisiana
2.4%
City
of
Shreveport
,
Water
&
Sewer,
Revenue,
2016
B,
5%,
12/01/41
..........................
10,000,000
9,684,205
Water
&
Sewer,
Revenue,
Junior
Lien,
2019
B,
AGMC
Insured,
4%,
12/01/44
.....
6,535,000
5,409,819
East
Baton
Rouge
Sewerage
Commission
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
2/01/45
7,065,000
5,948,001
Lafayette
Consolidated
Government
,
Revenue
,
2015
,
Refunding
,
AGMC
Insured
,
5
%
,
11/01/30
........................................................
5,000,000
5,062,965
f
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority
,
City
of
New
Orleans,
Revenue,
144A,
2021,
4%,
11/01/46
...................
9,800,000
7,796,959
Parish
of
Assumption,
Revenue,
144A,
2021,
3.875%,
11/01/45
...............
4,880,000
3,786,703
Parish
of
St.
Bernard,
Revenue,
144A,
2021,
4%,
11/01/45
...................
2,000,000
1,604,620
Parish
of
St.
Charles,
Revenue,
144A,
2022,
4.5%,
11/01/47
.................
9,455,000
8,091,225
Parish
of
St.
John
the
Baptist,
Revenue,
144A,
2019,
3.9%,
11/01/44
...........
2,265,000
1,795,401
Parish
of
St.
Tammany
LA
GOMESA,
Revenue,
144A,
2020,
3.875%,
11/01/45
....
6,100,000
4,733,379
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4%,
10/01/43
...
3,877,088
2,674,644
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)
Louisiana
(continued)
f
Louisiana
Local
Government
Environmental
Facilities
&
Community
Development
Authority,
(continued)
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.25%,
10/01/48
$
6,350,000
$
4,232,466
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
4.5%,
10/01/53
.
8,000,000
5,321,793
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A,
5%,
10/01/61
...
10,000,000
7,010,875
Louisiana
Public
Facilities
Authority
,
Franciscan
Missionaries
of
Our
Lady
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
7/01/47
..............................................
10,000,000
9,535,121
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/51
..............................................
9,000,000
8,426,538
Louisiana
State
University
&
Agricultural
&
Mechanical
College
Auxiliary,
Revenue,
2016
A,
5%,
7/01/56
..............................................
17,595,000
16,337,698
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
5/15/46
27,500,000
25,700,109
Ochsner
Clinic
Foundation
Obligated
Group,
Revenue,
2020
A,
Refunding,
AGMC
Insured,
3%,
5/15/47
..............................................
9,925,000
6,558,502
f
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.375%,
1/01/40
2,500,000
2,246,327
f
Provident
Group
-
HSC
Properties,
Inc.,
Revenue,
144A,
2020
A-1,
5.5%,
1/01/50
.
14,000,000
11,953,474
New
Orleans
Aviation
Board
,
Louis
Armstrong
New
Orleans
International
Airport
,
Revenue
,
2017
B
,
5
%
,
1/01/48
........................................
9,675,000
9,007,387
Parish
of
East
Baton
Rouge
Capital
Improvements
District
,
MovEBR
Sales
Tax
,
Revenue
,
2019
,
4
%
,
8/01/44
.........................................
6,000,000
5,109,586
e
Parish
of
St.
John
the
Baptist
,
Marathon
Oil
Corp.
,
Revenue
,
2017
B-2
,
Refunding
,
Mandatory
Put
,
2.375
%
,
7/01/26
......................................
7,500,000
7,003,734
Port
New
Orleans
Board
of
Commissioners
,
Revenue,
2020
E,
5%,
4/01/44
........................................
8,110,000
7,296,593
Revenue,
2020
E,
5%,
4/01/47
........................................
10,000,000
8,825,975
Terrebonne
Levee
&
Conservation
District
,
Sales
Tax,
Revenue,
2020
B,
Refunding,
4%,
6/01/40
.......................
5,065,000
4,298,013
Sales
Tax,
Revenue,
2020
B,
Refunding,
4%,
6/01/41
.......................
5,165,000
4,356,819
199,808,931
Maryland
1.5%
City
of
Baltimore
,
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/39
.....................
10,000,000
9,999,601
Wastewater
Utility
Fund,
Revenue,
2014
C,
5%,
7/01/44
.....................
10,000,000
9,698,552
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/39
.........................
9,430,000
9,429,624
Water
Utility
Fund,
Revenue,
2014
A,
5%,
7/01/44
.........................
5,500,000
5,334,203
Maryland
Economic
Development
Corp.
,
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2020,
4.25%,
7/01/50
1,000,000
810,593
Morgan
View
&
Thurgood
Marshall
Student
Housing,
Revenue,
2020,
5%,
7/01/56
.
1,415,000
1,294,158
Purple
Line
Transit
Partners
LLC,
Revenue,
2022
A,
5%,
11/12/28
.............
10,000,000
9,938,625
Purple
Line
Transit
Partners
LLC,
Revenue,
2022
B,
5.25%,
6/30/52
...........
10,000,000
9,249,025
Maryland
Health
&
Higher
Educational
Facilities
Authority
,
Adventist
Healthcare
Obligated
Group,
Revenue,
2016
A,
5.5%,
1/01/46
.........
12,500,000
11,720,371
Adventist
Healthcare
Obligated
Group,
Revenue,
2021
B,
4%,
1/01/51
..........
23,000,000
16,666,007
LifeBridge
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.....
3,000,000
2,491,157
MedStar
Health
Obligated
Group,
Revenue,
2015,
Refunding,
5%,
8/15/42
.......
13,285,000
12,938,369
MedStar
Health
Obligated
Group,
Revenue,
2017
A,
5%,
5/15/45
..............
15,465,000
15,037,854
Town
of
Chestertown
,
Washington
College,
Revenue,
2021
A,
Refunding,
5%,
3/01/33
...............
3,205,000
3,166,370
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/34
...............
3,420,000
3,073,201
Washington
College,
Revenue,
2021
A,
Refunding,
4%,
3/01/35
...............
3,555,000
3,152,324
124,000,034
Massachusetts
1.8%
Commonwealth
of
Massachusetts
,
GO,
2016
G,
4%,
9/01/42
............................................
20,000,000
17,668,116
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)
Massachusetts
(continued)
Commonwealth
of
Massachusetts,
(continued)
GO,
2018
E,
5.25%,
9/01/43
.........................................
$
10,000,000
$
10,237,982
Transportation
Fund,
Revenue,
2017
A,
5%,
6/01/47
.......................
25,055,000
25,056,964
Transportation
Fund,
Revenue,
2018
A,
5%,
6/01/48
.......................
15,000,000
14,894,481
Massachusetts
Bay
Transportation
Authority
,
Sales
Tax
,
Revenue
,
2005
A
,
5
%
,
7/01/28
10,000,000
10,622,148
Massachusetts
Clean
Water
Trust
(The)
,
Revenue,
1999
A,
5.75%,
8/01/29
.....................................
450,000
450,561
Revenue,
2002
A,
5%,
8/01/32
........................................
225,000
225,144
Massachusetts
Development
Finance
Agency
,
Mass
General
Brigham,
Inc.,
Revenue,
2017
S-1,
Refunding,
4%,
7/01/41
.......
15,415,000
13,637,667
Springfield
College,
Revenue,
2021
A,
4%,
6/01/56
........................
3,000,000
2,122,168
f
Waste
Management
of
Massachusetts,
Inc.,
Revenue,
144A,
2002,
1.25%,
5/01/27
3,250,000
2,852,854
Worcester
Polytechnic
Institute,
Revenue,
2019,
5%,
9/01/59
.................
10,000,000
10,003,607
Massachusetts
Educational
Financing
Authority
,
Revenue,
2017
B,
Refunding,
4.25%,
7/01/46
.............................
2,000,000
1,648,618
Revenue,
2021
C,
3%,
7/01/51
........................................
3,200,000
1,871,071
Revenue,
Senior
Lien,
2023
B,
4.25%,
7/01/44
............................
4,500,000
4,118,567
Massachusetts
Port
Authority
,
Revenue,
2021
E,
5%,
7/01/51
........................................
24,870,000
23,488,668
Bosfuel
Corp.,
Revenue,
2019
A,
Refunding,
5%,
7/01/49
....................
7,500,000
7,066,152
University
of
Massachusetts
Building
Authority
,
Revenue,
Senior
Lien
,
2014-1
,
5
%
,
11/01/39
........................................................
8,185,000
8,193,057
154,157,825
Michigan
0.5%
City
of
Detroit
,
Great
Lakes
Water
Authority
Sewage
Disposal
System,
Revenue,
Second
Lien,
2006
B,
NATL
Insured,
5%,
7/01/36
.......................................
10,000
10,009
Great
Lakes
Water
Authority
Water
Supply
System,
Revenue,
Senior
Lien,
2003
A,
NATL
Insured,
5%,
7/01/34
.........................................
10,000
10,010
Michigan
Finance
Authority
,
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/36
...
1,000,000
920,617
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/37
...
2,000,000
1,809,992
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/38
...
1,500,000
1,338,792
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/39
...
250,000
220,181
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/40
...
2,250,000
1,959,171
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
A,
1,
Refunding,
4%,
6/01/49
...
4,000,000
3,256,822
Tobacco
Settlement,
Revenue,
Senior
Lien,
2020
B-1,
2,
Refunding,
5%,
6/01/49
..
2,565,000
2,514,100
Michigan
State
Housing
Development
Authority
,
Revenue
,
2023
B
,
Refunding
,
5
%
,
6/01/54
.........................................................
3,500,000
3,341,022
Michigan
Strategic
Fund
,
State
of
Michigan
Department
of
Transportation,
Revenue,
2018,
5%,
6/30/48
....
12,415,000
11,301,239
United
Methodist
Retirement
Communities,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
5%,
11/15/49
...........................................
7,000,000
5,457,665
Pontiac
School
District
,
GO
,
2020
,
4
%
,
5/01/50
.............................
8,665,000
7,128,343
Wayne
County
Airport
Authority
,
Detroit
Metropolitan
Wayne
County
Airport
,
Revenue
,
2023
B
,
AGMC
Insured
,
5.5
%
,
12/01/48
.................................
5,000,000
5,061,504
44,329,467
Mississippi
0.8%
Medical
Center
Educational
Building
Corp.
,
Mississippi
State
Institutions
of
Higher
Learning
,
Revenue
,
2023
A
,
4
%
,
6/01/53
................................
6,000,000
4,840,850
Mississippi
Business
Finance
Corp.
,
System
Energy
Resources,
Inc.
,
Revenue
,
2021
,
Refunding
,
2.375
%
,
6/01/44
..........................................
7,000,000
3,717,064
Mississippi
Development
Bank
,
City
of
Jackson
Water
&
Sewer
System,
Revenue,
2013,
AGMC
Insured,
6.875%,
12/01/40
.......................................................
3,400,000
3,410,089
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)
Mississippi
(continued)
Mississippi
Development
Bank,
(continued)
f
County
of
Jackson,
Revenue,
144A,
2021,
3.625%,
11/01/36
.................
$
3,000,000
$
2,524,728
Mississippi
Home
Corp.
,
f
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
3.5%,
6/01/33
.
584,263
458,789
f
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4%,
6/01/46
..
1,000,000
661,749
f
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
A-5,
4.5%,
6/01/62
.
17,965,177
11,683,143
f
Patriot
Services
Group
Obligated
Group,
Revenue,
144A,
2021
B-5,
5.2%,
6/01/36
5,600,000
4,103,789
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.15%,
6/01/46
..................................................
3,464,038
2,351,303
Patriot
Services
Group
Pascagoula
Portfolio
II
Obligated
Group,
Revenue,
2021
D-8,
4.65%,
6/01/62
..................................................
5,381,952
3,605,332
Mississippi
Hospital
Equipment
&
Facilities
Authority
,
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/36
...
6,350,000
6,204,929
Baptist
Memorial
Health
Care
Obligated
Group,
Revenue,
2016
A,
5%,
9/01/46
...
30,000,000
27,117,021
70,678,786
Missouri
0.6%
Health
&
Educational
Facilities
Authority
of
the
State
of
Missouri
,
BJC
Healthcare
Obligated
Group,
Revenue,
2015
A,
4%,
1/01/45
..............
20,005,000
17,095,707
Lutheran
Senior
Services
Obligated
Group,
Revenue,
2016
B,
Refunding,
5%,
2/01/46
........................................................
4,000,000
3,463,422
Mercy
Health,
Revenue,
2023,
5%,
12/01/52
.............................
5,000,000
4,828,600
Kansas
City
Industrial
Development
Authority
,
City
of
Kansas
City
Airport
,
Revenue
,
2019
B
,
AGMC
Insured
,
5
%
,
3/01/49
...................................
20,000,000
18,850,110
St.
Louis
Municipal
Finance
Corp.
,
City
of
St.
Louis
,
Revenue
,
2020
,
AGMC
Insured
,
5
%
,
10/01/45
.....................................................
5,000,000
4,977,627
49,215,466
Montana
0.2%
Montana
Facility
Finance
Authority
,
Billings
Clinic
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
8/15/48
.......
10,000,000
9,594,510
Kalispell
Regional
Medical
Center
Obligated
Group,
Revenue,
2018
B,
Refunding,
5%,
7/01/43
....................................................
6,440,000
5,753,454
15,347,964
Nebraska
0.6%
e
Central
Plains
Energy
Project
,
Revenue
,
2022-1
,
Mandatory
Put
,
5
%
,
10/01/29
.....
15,000,000
14,832,183
Gretna
Public
Schools
,
GO
,
2022
,
4
%
,
12/15/47
............................
12,935,000
10,887,380
Omaha
Public
Power
District
Nebraska
City
Station
Unit
2
,
Revenue,
2015
A,
Refunding,
5.25%,
2/01/42
.............................
10,000,000
10,042,861
Revenue,
2016
A,
Refunding,
5%,
2/01/49
...............................
10,000,000
10,029,410
Public
Power
Generation
Agency
,
Revenue
,
2016
A
,
Refunding
,
5
%
,
1/01/39
.......
7,340,000
7,388,034
53,179,868
Nevada
0.2%
Carson
City
,
Carson
Tahoe
Regional
Healthcare
Obligated
Group
,
Revenue
,
2017
,
Refunding
,
5
%
,
9/01/47
.............................................
2,775,000
2,505,835
City
of
Henderson
,
GO
,
2020
A-1
,
4
%
,
6/01/45
.............................
10,000,000
8,541,694
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
10,046,538
21,094,067
New
Hampshire
0.2%
New
Hampshire
Business
Finance
Authority
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2023
A
,
5.25
%
,
7/01/48
.....................................
2,250,000
2,036,677
New
Hampshire
Health
and
Education
Facilities
Authority
Act
,
Elliot
Hospital
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
10/01/38
.......
4,000,000
3,797,112
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
Hampshire
(continued)
New
Hampshire
Health
and
Education
Facilities
Authority
Act,
(continued)
University
System
of
New
Hampshire,
Revenue,
2015,
Refunding,
5%,
7/01/45
...
$
10,350,000
$
9,942,782
15,776,571
New
Jersey
3.0%
Camden
County
Improvement
Authority
(The)
,
KIPP
Cooper
Norcross
Obligated
Group
,
Revenue
,
2022
,
6
%
,
6/15/62
.........................................
5,075,000
5,168,211
City
of
Newark
,
Mass
Transit
Access
Tax
,
Revenue
,
2022
,
AGMC
Insured
,
6
%
,
11/15/62
........................................................
4,000,000
4,305,528
New
Jersey
Economic
Development
Authority
,
New
Jersey
Transit
Corp.,
Revenue,
2020
A,
5%,
11/01/44
...................
15,000,000
14,852,522
New
Jersey
Transit
Corp.,
Revenue,
2022
A,
5%,
11/01/52
...................
10,000,000
9,704,299
New
Jersey
Educational
Facilities
Authority
,
State
of
New
Jersey
,
Revenue
,
2016
B
,
5
%
,
9/01/36
......................................................
14,000,000
14,077,469
New
Jersey
Higher
Education
Student
Assistance
Authority
,
Revenue,
2021
C,
Refunding,
3.25%,
12/01/51
...........................
2,000,000
1,231,220
Revenue,
Senior
Lien,
2018
A,
4%,
12/01/33
.............................
1,010,000
1,000,083
Revenue,
Senior
Lien,
2020
B,
3.5%,
12/01/39
............................
5,640,000
5,165,871
Revenue,
Senior
Lien,
2023
B,
4%,
12/01/44
.............................
8,000,000
7,093,519
New
Jersey
Transportation
Trust
Fund
Authority
,
Revenue,
2009
A,
BAM
Insured,
Zero
Cpn.,
12/15/39
.......................
35,000,000
15,402,506
Revenue,
2015
AA,
5%,
6/15/45
.......................................
15,000,000
14,447,266
Revenue,
2018
A,
Refunding,
5%,
12/15/36
..............................
7,000,000
7,098,139
Revenue,
2019
AA,
5.25%,
6/15/43
....................................
5,000,000
5,047,378
Revenue,
2020
AA,
5%,
6/15/35
.......................................
3,000,000
3,108,552
Revenue,
2020
AA,
5%,
6/15/37
.......................................
5,220,000
5,351,502
Revenue,
2020
AA,
5%,
6/15/38
.......................................
1,000,000
1,018,760
Revenue,
2020
AA,
5%,
6/15/39
.......................................
4,240,000
4,293,702
Revenue,
2020
AA,
5%,
6/15/40
.......................................
2,500,000
2,518,460
Revenue,
2020
AA,
5%,
6/15/45
.......................................
20,435,000
20,200,768
Revenue,
2020
AA,
4%,
6/15/50
.......................................
39,000,000
32,425,088
Revenue,
2021
A,
Refunding,
5%,
6/15/31
...............................
7,250,000
7,650,175
Revenue,
2021
A,
Refunding,
5%,
6/15/33
...............................
1,250,000
1,309,555
Revenue,
2022
BB,
4%,
6/15/46
.......................................
17,000,000
14,495,927
Revenue,
2022
CC,
5.5%,
6/15/50
.....................................
2,000,000
2,052,780
New
Jersey
Turnpike
Authority
,
Revenue
,
2015
E
,
5
%
,
1/01/45
.................
11,475,000
11,146,840
Tobacco
Settlement
Financing
Corp.
,
Revenue
,
2018
B
,
Refunding
,
5
%
,
6/01/46
....
46,290,000
42,976,978
253,143,098
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
15,901,151
New
Mexico
Hospital
Equipment
Loan
Council
,
Presbyterian
Healthcare
Services
Obligated
Group,
Revenue,
2017
A,
Refunding,
5%,
8/01/46
....................................................
15,000,000
14,615,877
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/33
.
1,000,000
901,217
San
Juan
Regional
Medical
Center,
Inc.,
Revenue,
2020,
Refunding,
4%,
6/01/35
.
1,000,000
871,128
32,289,373
New
York
9.2%
Buffalo
&
Erie
County
Industrial
Land
Development
Corp.
,
D'Youville
College
,
Revenue
,
2020
A
,
Refunding
,
4
%
,
11/01/40
......................................
2,200,000
1,829,358
City
of
New
York
,
GO,
2002
D,
5.5%,
6/01/24
..........................................
95,000
95,117
GO,
2018
E-1,
5%,
3/01/41
..........................................
11,355,000
11,452,232
GO,
2022
D-1,
5.5%,
5/01/46
.........................................
2,500,000
2,617,138
GO,
2023
A-1,
4%,
9/01/46
..........................................
6,000,000
5,146,520
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
Metropolitan
Transportation
Authority
,
Revenue,
2012
A-1,
Refunding,
5%,
11/15/40
.............................
$
30,000,000
$
30,055,710
Revenue,
2013
A,
Refunding,
5%,
11/15/38
..............................
11,800,000
11,819,726
Revenue,
2013
B,
Refunding,
5%,
11/15/43
..............................
8,000,000
8,013,374
Revenue,
2015
A-1,
5%,
11/15/40
.....................................
7,000,000
6,896,971
Revenue,
2016
A-1,
5.25%,
11/15/56
...................................
15,000,000
14,606,307
Revenue,
2016
D,
Refunding,
5%,
11/15/31
..............................
1,180,000
1,194,157
Revenue,
2019
A-2,
5%,
11/15/45
.....................................
46,270,000
44,938,900
Revenue,
2020
A-1,
4%,
11/15/45
.....................................
10,000,000
8,270,073
Revenue,
2020
A-1,
5%,
11/15/47
.....................................
24,300,000
23,376,785
Revenue,
2020
D,
5%,
11/15/44
.......................................
35,000,000
34,128,287
Revenue,
2020
D,
4%,
11/15/50
.......................................
20,000,000
16,089,388
Revenue,
2020
E,
Refunding,
4%,
11/15/45
..............................
905,000
748,589
Revenue,
2021
A-1,
4%,
11/15/44
.....................................
6,725,000
5,604,762
New
York
City
Industrial
Development
Agency
,
Yankee
Stadium
LLC
,
Revenue
,
2020
A
,
Refunding
,
AGMC
Insured
,
4
%
,
3/01/45
.................................
6,000,000
4,949,499
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System,
Revenue,
2015
HH,
Refunding,
5%,
6/15/39
...........
15,000,000
15,012,729
Water
&
Sewer
System,
Revenue,
2017
CC-1,
Refunding,
5%,
6/15/46
.........
32,500,000
32,272,669
Water
&
Sewer
System,
Revenue,
2019
DD-1,
5.25%,
6/15/49
................
12,000,000
12,156,508
New
York
City
Transitional
Finance
Authority
,
Future
Tax
Secured,
Revenue,
2014
A-1,
5%,
11/01/34
......................
15,000,000
14,999,832
Future
Tax
Secured,
Revenue,
2016
E-1,
5%,
2/01/38
......................
10,000,000
10,042,106
Future
Tax
Secured,
Revenue,
2017
F-1,
5%,
5/01/42
......................
11,095,000
11,097,634
Future
Tax
Secured,
Revenue,
2018
C-2,
5%,
5/01/38
......................
11,945,000
12,099,380
Future
Tax
Secured,
Revenue,
2018
C-3,
4%,
5/01/43
......................
19,800,000
17,335,371
Future
Tax
Secured,
Revenue,
2020
B-1,
4%,
11/01/47
.....................
10,000,000
8,504,043
New
York
Liberty
Development
Corp.
,
Revenue,
2021
A,
Refunding,
3%,
11/15/51
..............................
10,000,000
6,447,831
Goldman
Sachs
Headquarters
LLC,
Revenue,
2005,
Refunding,
5.25%,
10/01/35
..
40,000,000
41,965,752
Goldman
Sachs
Headquarters
LLC,
Revenue,
2007,
5.5%,
10/01/37
...........
24,995,000
25,983,640
New
York
State
Dormitory
Authority
,
State
of
New
York
Personal
Income
Tax,
Revenue,
2015
B,
5%,
2/15/40
.........
20,000,000
19,901,688
State
of
New
York
Personal
Income
Tax,
Revenue,
2017
B,
Refunding,
5%,
2/15/42
24,410,000
24,439,446
State
of
New
York
Personal
Income
Tax,
Revenue,
2020
A,
Refunding,
4%,
3/15/48
5,000,000
4,278,942
State
of
New
York
Sales
Tax,
Revenue,
2017
A,
5%,
3/15/43
.................
10,000,000
10,014,117
State
of
New
York
Sales
Tax,
Revenue,
2018
A,
5%,
3/15/39
.................
13,270,000
13,452,340
State
of
New
York
Sales
Tax,
Revenue,
2018
C,
Refunding,
5%,
3/15/37
........
23,000,000
23,511,681
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/44
........
16,000,000
15,999,043
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Refunding,
5%,
3/15/45
........
60,365,000
60,657,378
State
of
New
York
Sales
Tax,
Revenue,
2018
E,
Pre-Refunded,
5%,
3/15/46
......
5,000
5,295
New
York
State
Thruway
Authority
,
Revenue,
2019
B,
4%,
1/01/50
........................................
20,000,000
16,266,508
Revenue,
Junior
Lien,
2016
A,
5%,
1/01/46
..............................
9,000,000
8,785,301
State
of
New
York
Personal
Income
Tax,
Revenue,
2022
A,
Refunding,
4%,
3/15/44
7,000,000
6,109,511
State
of
New
York
Personal
Income
Tax,
Revenue,
2022
A,
Refunding,
4%,
3/15/51
12,115,000
10,283,590
New
York
State
Urban
Development
Corp.
,
State
of
New
York
Personal
Income
Tax
,
Revenue
,
2020
A
,
4
%
,
3/15/45
........................................
36,905,000
31,766,525
New
York
Transportation
Development
Corp.
,
Delta
Air
Lines,
Inc.,
Revenue,
2018,
5%,
1/01/32
..........................
5,000,000
4,858,273
Delta
Air
Lines,
Inc.,
Revenue,
2018,
5%,
1/01/36
..........................
5,560,000
5,267,836
Delta
Air
Lines,
Inc.,
Revenue,
2020,
4%,
10/01/30
.........................
21,460,000
19,745,093
Delta
Air
Lines,
Inc.,
Revenue,
2020,
5%,
10/01/40
.........................
9,360,000
8,531,116
h
Delta
Air
Lines,
Inc.,
Revenue,
2023,
5.625%,
4/01/40
......................
5,000,000
4,981,172
JFK
International
Air
Terminal
LLC,
Revenue,
2022,
5%,
12/01/33
.............
7,500,000
7,562,644
Port
Authority
of
New
York
&
New
Jersey
,
Revenue,
179,
5%,
12/01/38
.........................................
20,000,000
20,023,554
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
New
York
(continued)
Port
Authority
of
New
York
&
New
Jersey,
(continued)
Revenue,
218,
4%,
11/01/47
.........................................
$
13,500,000
$
10,825,316
Triborough
Bridge
&
Tunnel
Authority
,
Revenue
,
2022
A
,
4
%
,
11/15/52
............
10,000,000
8,311,918
775,328,675
North
Carolina
0.5%
Greater
Asheville
Regional
Airport
Authority
,
Revenue
,
2022
A
,
AGMC
Insured
,
5.5
%
,
7/01/52
.........................................................
5,000,000
5,030,613
North
Carolina
Medical
Care
Commission
,
Presbyterian
Homes
Obligated
Group
,
Revenue
,
2020
A
,
5
%
,
10/01/50
.......................................
2,200,000
2,008,954
North
Carolina
Turnpike
Authority
,
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/33
......................
25,000,000
16,286,267
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/34
......................
15,000,000
9,282,300
Revenue,
2009
B,
AGMC
Insured,
Zero
Cpn.,
1/01/35
......................
15,215,000
8,910,665
41,518,799
North
Dakota
0.8%
City
of
Grand
Forks
,
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
5%,
12/01/34
..
5,500,000
5,294,516
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/35
..
1,815,000
1,548,759
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/37
..
2,950,000
2,454,425
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/38
..
4,600,000
3,779,866
Altru
Health
System
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
12/01/41
..
3,875,000
3,064,147
Altru
Health
System
Obligated
Group,
Revenue,
2023
A,
AGMC
Insured,
5%,
12/01/53
.......................................................
2,440,000
2,322,876
City
of
Horace
,
GO
,
2023
B
,
Refunding
,
5.125
%
,
7/01/25
.....................
14,500,000
14,557,569
State
Board
of
Higher
Education
of
the
State
of
North
Dakota
,
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/44
............................
10,000,000
8,336,169
Revenue,
2019
A,
AGMC
Insured,
4%,
4/01/50
............................
9,620,000
7,687,681
University
of
North
Dakota
,
COP,
2018
A,
5%,
4/01/48
...........................................
5,500,000
5,355,722
COP,
2018
A,
5%,
4/01/57
...........................................
10,000,000
9,529,941
63,931,671
Ohio
1.9%
Akron
Bath
Copley
Joint
Township
Hospital
District
,
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/37
3,915,000
3,280,716
Summa
Health
System
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
5,700,000
4,675,270
American
Municipal
Power,
Inc.
,
Combined
Hydroelectric,
Revenue,
2016
A,
Refunding,
5%,
2/15/46
............
20,000,000
19,228,540
Prairie
State
Energy
Campus,
Revenue,
2015
A,
Refunding,
5%,
2/15/39
........
5,000,000
5,001,056
Prairie
State
Energy
Campus,
Revenue,
2015
A,
Refunding,
5%,
2/15/42
........
2,500,000
2,409,128
Prairie
State
Energy
Campus,
Revenue,
2019
C,
Refunding,
4%,
2/15/39
........
18,795,000
16,226,445
Buckeye
Tobacco
Settlement
Financing
Authority
,
Revenue,
Senior
Lien
,
2020
A-2
,
1
,
Refunding
,
4
%
,
6/01/48
.............................................
4,505,000
3,605,585
Cleveland-Cuyahoga
County
Port
Authority
,
County
of
Cuyahoga
,
Revenue
,
2013
,
5
%
,
7/01/37
.........................................................
6,000,000
6,191,779
County
of
Butler
,
UC
Health
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
11/15/45
........................................................
7,500,000
6,745,316
County
of
Franklin
,
Ohio
Living
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
7/01/40
..........
10,410,000
7,951,754
Trinity
Health
Corp.
Obligated
Group,
Revenue,
2017,
5%,
12/01/46
............
10,000,000
9,598,228
County
of
Hamilton
,
Life
Enriching
Communities
Obligated
Group,
Revenue,
2023
A,
5.75%,
1/01/53
...
4,530,000
4,193,178
UC
Health
Obligated
Group,
Revenue,
2020,
5%,
9/15/50
...................
7,500,000
6,536,813
Northeast
Ohio
Regional
Sewer
District
,
Revenue
,
2017
,
Refunding
,
4
%
,
11/15/38
..
10,000,000
9,056,599
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)
Ohio
(continued)
Ohio
Higher
Educational
Facility
Commission
,
Case
Western
Reserve
University,
Revenue,
2021
A,
Refunding,
4%,
12/01/44
....
$
6,815,000
$
5,824,482
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/42
...........
1,350,000
1,160,678
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/45
...........
1,185,000
992,671
Judson
Obligated
Group,
Revenue,
2020
A,
Refunding,
5%,
12/01/50
...........
2,530,000
2,049,292
Ohio
Turnpike
&
Infrastructure
Commission
,
Revenue,
Junior
Lien
,
2013
A-4
,
5.75
%
,
2/15/35
.........................................................
35,000,000
39,207,665
State
of
Ohio
,
Cleveland
Clinic
Health
System
Obligated
Group,
Revenue,
2019
B,
4%,
1/01/46
..
10,000,000
8,350,358
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/38
640,000
530,645
Premier
Health
Partners
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
11/15/40
855,000
687,981
163,504,179
Oklahoma
0.3%
Edmond
Public
Works
Authority
,
Revenue,
2017,
5%,
7/01/42
.........................................
4,000,000
4,012,438
Revenue,
2017,
5%,
7/01/47
.........................................
4,500,000
4,451,631
Norman
Regional
Hospital
Authority
,
Norman
Regional
Hospital
Authority
Obligated
Group
,
Revenue
,
2019
,
5
%
,
9/01/45
....................................
3,500,000
3,149,263
Oklahoma
Turnpike
Authority
,
Revenue
,
2023
,
5.5
%
,
1/01/53
...................
6,000,000
6,304,736
Oklahoma
Water
Resources
Board
,
Revenue
,
2023
B
,
4
%
,
10/01/48
.............
4,000,000
3,397,353
21,315,421
Oregon
1.1%
County
of
Yamhill
,
Linfield
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/50
...
12,210,000
10,510,052
Oregon
City
School
District
No.
62
,
GO
,
2018
B
,
Refunding
,
5
%
,
6/15/49
..........
15,000,000
15,120,819
Oregon
Health
&
Science
University
,
Oregon
Health
&
Science
University
Obligated
Group
,
Revenue
,
2019
A
,
Refunding
,
4
%
,
7/01/44
.........................
1,685,000
1,442,443
Port
of
Portland
,
Airport,
Revenue,
25
B,
5%,
7/01/44
....................................
2,450,000
2,364,158
Airport,
Revenue,
27
A,
5%,
7/01/38
....................................
10,000,000
9,919,381
Airport,
Revenue,
27
A,
5%,
7/01/45
....................................
10,000,000
9,608,436
Airport,
Revenue,
28,
5%,
7/01/52
.....................................
13,755,000
12,843,753
Airport,
Revenue,
29,
5.5%,
7/01/48
....................................
18,500,000
18,817,573
State
of
Oregon
,
Housing
&
Community
Services
Department,
Revenue,
2018
A,
3.6%,
1/01/33
....
5,080,000
4,738,252
Housing
&
Community
Services
Department,
Revenue,
2018
D,
3.8%,
7/01/34
....
4,695,000
4,458,144
Washington
Clackamas
&
Yamhill
Counties
School
District
No.
88J
,
GO,
2018
A,
Zero
Cpn.,
6/15/42
.......................................
5,900,000
2,086,071
GO,
2018
A,
Zero
Cpn.,
6/15/43
.......................................
5,500,000
1,828,673
93,737,755
Pennsylvania
1.4%
Allegheny
County
Sanitary
Authority
,
Revenue
,
2013
,
BAM
Insured
,
5.25
%
,
12/01/44
5,000,000
4,999,819
Allentown
Commercial
and
Industrial
Development
Authority
,
Lincoln
Leadership
Academy
Charter
School
,
Revenue
,
2023
,
6
%
,
6/15/53
.....................
1,600,000
1,500,978
City
of
Philadelphia
,
Airport
,
Revenue
,
2020
C
,
Refunding
,
4
%
,
7/01/45
...........
1,500,000
1,216,172
Commonwealth
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Community
&
Economic
Development
,
Revenue
,
2015
A
,
5
%
,
6/01/33
..........
4,550,000
4,593,268
Huntingdon
County
General
Authority
,
Juniata
College
,
Revenue
,
2021
TT-3
,
Refunding
,
5
%
,
10/01/51
............................................
5,000,000
4,157,445
Lancaster
Industrial
Development
Authority
,
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/31
........
395,000
349,011
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/37
........
345,000
273,532
Landis
Homes
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
7/01/56
........
3,300,000
2,112,117
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)
Pennsylvania
(continued)
Lehigh
County
General
Purpose
Authority
,
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/52
....
$
13,785,000
$
10,053,446
Lehigh
Valley
Academy
Regional
Charter
School,
Revenue,
2022,
4%,
6/01/57
....
5,000,000
3,539,228
Montgomery
County
Industrial
Development
Authority
,
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
4%,
11/15/43
.......................................................
600,000
469,411
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
C,
5%,
11/15/45
.......................................................
1,000,000
897,737
Meadowood
Corp.
Obligated
Group
(The),
Revenue,
2018
A,
Refunding,
5%,
12/01/48
.......................................................
9,000,000
7,614,125
Pennsylvania
Economic
Development
Financing
Authority
,
Commonwealth
of
Pennsylvania
Department
of
Transportation,
Revenue,
2022,
5.25%,
6/30/53
..................................................
4,000,000
3,786,419
Commonwealth
of
Pennsylvania
Department
of
Transportation,
Revenue,
2022,
6%,
6/30/61
........................................................
5,000,000
5,188,034
Presbyterian
Homes
Obligated
Group,
Revenue,
2023
B-1,
5.25%,
7/01/49
......
1,000,000
909,615
UPMC
Obligated
Group,
Revenue,
2022
A,
Refunding,
4%,
2/15/40
............
5,240,000
4,521,298
Pennsylvania
Housing
Finance
Agency
,
Revenue,
2022-139
A,
Refunding,
4%,
10/01/37
...........................
9,100,000
7,906,282
i
Revenue,
2023-143A,
5.45%,
4/01/51
..................................
10,000,000
10,000,638
Pennsylvania
Turnpike
Commission
,
Revenue,
2020
B,
5%,
12/01/50
.......................................
8,000,000
7,946,203
Revenue,
2023
A,
Refunding,
5%,
12/01/53
..............................
7,585,000
7,536,303
Philadelphia
Gas
Works
Co.
,
Revenue
,
16th
A
,
AGMC
Insured
,
4
%
,
8/01/45
.......
4,000,000
3,370,429
School
District
of
Philadelphia
(The)
,
GO,
2016
F,
Refunding,
5%,
9/01/33
...................................
6,415,000
6,478,995
GO,
2016
F,
Refunding,
5%,
9/01/36
...................................
4,090,000
4,091,046
State
Public
School
Building
Authority
,
School
District
of
Philadelphia
(The)
,
Revenue
,
2016
A
,
Refunding
,
AGMC
Insured
,
5
%
,
6/01/32
...........................
10,000,000
10,170,588
113,682,139
Rhode
Island
0.1%
Rhode
Island
Health
and
Educational
Building
Corp.
,
Lifespan
Obligated
Group
,
Revenue
,
2016
,
Refunding
,
5
%
,
5/15/39
.................................
5,500,000
5,118,592
Rhode
Island
Housing
&
Mortgage
Finance
Corp.
,
Revenue,
10A,
6.5%,
4/01/27
.........................................
130,000
130,187
Revenue,
15A,
6.85%,
10/01/24
.......................................
105,000
105,182
Rhode
Island
Student
Loan
Authority
,
Revenue,
Senior
Lien,
2021
A,
5%,
12/01/27
.............................
1,000,000
1,020,285
Revenue,
Senior
Lien,
2021
A,
5%,
12/01/29
.............................
2,025,000
2,077,648
8,451,894
South
Carolina
1.8%
County
of
Greenwood
,
Self
Regional
Healthcare,
Revenue,
2017,
Refunding,
4%,
10/01/37
............
8,465,000
7,482,325
Self
Regional
Healthcare,
Revenue,
2017,
Refunding,
4%,
10/01/39
............
1,195,000
1,054,927
f
County
of
Richland
,
Village
at
Sandhill
Improvement
District
,
Special
Assessment
,
144A,
2021
,
Refunding
,
3.75
%
,
11/01/36
................................
1,270,000
941,924
e
Patriots
Energy
Group
Financing
Agency
,
Revenue
,
2023
A-1
,
Mandatory
Put
,
5.25
%
,
8/01/31
.........................................................
10,000,000
9,960,546
South
Carolina
Jobs-Economic
Development
Authority
,
f
Revenue,
144A,
2021
A-1,
3.65%,
12/01/36
..............................
23,510,000
17,528,953
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-1,
3.65%,
12/01/36
...........
22,470,000
16,704,856
AHPC
Vista
Towers
2021
LLC,
Revenue,
2021
A-2,
4.75%,
12/01/26
...........
2,115,000
1,900,954
f
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-1,
Zero
Cpn.,
6/01/37
17,900,000
11,127,981
f
Columbia
Portfolio
Obligated
Group,
Revenue,
144A,
2022
A-2,
Zero
Cpn.,
6/01/52
32,000,000
18,269,606
f
FAH
Pelham
LLC,
Revenue,
144A,
2023
A-1,
I,
6.5%,
2/01/56
................
24,865,000
22,031,372
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)
South
Carolina
(continued)
South
Carolina
Jobs-Economic
Development
Authority,
(continued)
f
FAH
Pelham
LLC,
Revenue,
144A,
2023
A-2,
I,
10%,
8/01/39
.................
$
770,000
$
685,429
Prisma
Health
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
5/01/48
......
25,000,000
23,704,620
South
Carolina
Ports
Authority
,
Revenue,
2018,
5%,
7/01/48
.........................................
10,000,000
9,457,582
Revenue,
2018,
5%,
7/01/55
.........................................
10,400,000
9,606,725
Spartanburg
Regional
Health
Services
District
,
Spartanburg
Regional
Health
Services
District
Obligated
Group
,
Revenue
,
2020
A
,
AGMC
Insured
,
4
%
,
4/15/39
........
1,410,000
1,243,383
151,701,183
South
Dakota
0.5%
South
Dakota
Health
&
Educational
Facilities
Authority
,
Revenue,
2015
A,
Refunding,
5%,
8/01/38
...............................
3,475,000
3,508,152
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
7/01/42
.........
10,000,000
8,326,983
Avera
Health
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
7/01/46
.........
20,000,000
19,188,032
Monument
Health
Obligated
Group,
Revenue,
2017,
4%,
9/01/37
..............
10,920,000
9,731,995
South
Dakota
State
Building
Authority
,
Revenue
,
2017
A
,
Refunding
,
5
%
,
6/01/42
...
5,450,000
5,494,323
46,249,485
Tennessee
3.5%
Chattanooga
Health
Educational
&
Housing
Facility
Board
,
CDFI
Phase
I
LLC
,
Revenue
,
2015
,
Refunding
,
5
%
,
10/01/35
................................
1,000,000
1,001,763
City
of
Chattanooga
,
Electric
,
Revenue
,
2015
C
,
Refunding
,
5
%
,
9/01/40
..........
2,750,000
2,750,139
City
of
Germantown
,
GO,
2017,
4%,
8/01/43
.............................................
2,330,000
2,074,286
GO,
2017,
4%,
8/01/45
.............................................
2,525,000
2,209,934
City
of
Jackson
,
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
5%,
4/01/36
......
3,885,000
3,778,707
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
Pre-Refunded,
5%,
4/01/36
........................................................
115,000
116,615
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
4%,
4/01/41
......
24,265,000
19,747,898
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2015,
Pre-Refunded,
4%,
4/01/41
........................................................
735,000
735,315
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2018
A,
5%,
4/01/41
....
2,255,000
2,104,358
West
Tennessee
Healthcare
Obligated
Group,
Revenue,
2018
A,
Pre-Refunded,
5%,
4/01/41
........................................................
115,000
121,279
City
of
Knoxville
,
Wastewater
System
,
Revenue
,
2015
A
,
Refunding
,
4
%
,
4/01/42
...
5,000,000
4,423,268
City
of
Memphis
,
Electric
System,
Revenue,
2020
A,
3%,
12/01/42
..........................
2,470,000
1,773,801
Gas,
Revenue,
2020,
3%,
12/01/42
....................................
1,000,000
718,138
City
of
Portland
,
Water
&
Sewer
,
Revenue
,
2020
,
AGMC
Insured
,
3
%
,
4/01/45
......
1,775,000
1,189,862
County
of
Coffee
,
GO
,
2019
,
Refunding
,
4
%
,
6/01/44
........................
2,760,000
2,422,188
County
of
Maury
,
GO
,
2015
,
Refunding
,
4
%
,
4/01/34
.........................
1,775,000
1,746,800
County
of
Wilson
,
GO
,
2017
A
,
4
%
,
4/01/42
................................
5,000,000
4,423,268
Harpeth
Valley
Utilities
District
of
Davidson
and
Williamson
Counties
,
Revenue,
2014,
5%,
9/01/44
.........................................
4,400,000
4,349,196
Revenue,
2020,
4%,
9/01/50
.........................................
500,000
416,612
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
2,994,972
Johnson
City
Health
&
Educational
Facilities
Board
,
Ballad
Health
Obligated
Group
,
Revenue
,
1998
,
NATL
Insured
,
ETM,
5.25
%
,
7/01/28
.......................
8,500,000
8,892,127
Knox
Chapman
Utility
District
of
Knox
County
,
Revenue
,
2012
,
Refunding
,
4
%
,
1/01/40
4,000,000
3,601,499
Knox
County
Health
Educational
&
Housing
Facility
Board
,
Covenant
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/01/42
....
18,000,000
16,778,212
Covenant
Health
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
1/01/47
....
22,815,000
20,932,534
University
Health
System
Obligated
Group,
Revenue,
2016,
Refunding,
5%,
9/01/47
3,000,000
2,576,992
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)
Tennessee
(continued)
Knox
County
Health
Educational
&
Housing
Facility
Board,
(continued)
University
Health
System
Obligated
Group,
Revenue,
2017,
Refunding,
5%,
4/01/36
$
2,250,000
$
2,182,153
Madison
Suburban
Utility
District
,
Revenue
,
2021
,
3
%
,
2/01/45
.................
1,000,000
671,348
Memphis-Shelby
County
Airport
Authority
,
Revenue,
2018,
5%,
7/01/47
.........................................
11,000,000
10,308,878
Revenue,
2021
A,
5%,
7/01/45
........................................
12,235,000
11,665,070
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
2,486,664
Blakeford
at
Green
Hills
Obligated
Group,
Revenue,
2020
A,
4%,
11/01/55
.......
9,015,000
5,848,455
Trevecca
Nazarene
University,
Revenue,
2021
B,
4%,
10/01/41
...............
1,050,000
837,394
Trevecca
Nazarene
University,
Revenue,
2021
B,
4%,
10/01/51
...............
6,860,000
4,919,325
Vanderbilt
University
Medical
Center
Obligated
Group,
Revenue,
2016
A,
5%,
7/01/46
........................................................
5,000,000
4,848,271
Metropolitan
Government
of
Nashville
&
Davidson
County
,
Electric
,
Revenue
,
2014
A
,
5
%
,
5/15/39
......................................................
4,000,000
4,001,225
Metropolitan
Nashville
Airport
Authority
(The)
,
Revenue,
2019
B,
5%,
7/01/44
........................................
20,000,000
19,153,710
Revenue,
2019
B,
4%,
7/01/49
........................................
3,000,000
2,347,173
Revenue,
2019
B,
5%,
7/01/49
........................................
17,475,000
16,464,134
Revenue,
2022
B,
5.25%,
7/01/47
.....................................
10,000,000
9,818,132
Revenue,
2022
B,
5.5%,
7/01/52
......................................
2,500,000
2,506,735
Shelby
County
Health
Educational
&
Housing
Facilities
Board
,
Methodist
Le
Bonheur
Healthcare
Obligated
Group,
Revenue,
2017
A,
5%,
5/01/36
4,000,000
4,030,962
Rhodes
College,
Revenue,
2015,
5%,
8/01/45
............................
1,700,000
1,704,800
Rhodes
College,
Revenue,
2017,
Refunding,
4%,
8/01/40
...................
3,000,000
2,565,124
South
Blount
County
Utility
District
,
Revenue
,
2019
,
Refunding
,
3
%
,
12/01/39
......
2,015,000
1,527,085
e
Tennergy
Corp.
,
Revenue
,
2022
A
,
Mandatory
Put
,
5.5
%
,
12/01/30
..............
55,000,000
55,208,566
Tennessee
Housing
Development
Agency
,
Revenue,
2013
1-C,
4%,
7/01/43
......................................
805,000
738,810
Revenue,
2017-3,
3.65%,
7/01/47
.....................................
610,000
507,820
Revenue,
2018-2,
Refunding,
3.85%,
7/01/42
.............................
1,005,000
930,906
Revenue,
2018-4,
Refunding,
4%,
7/01/43
...............................
5,745,000
5,395,443
i
Revenue,
2023-3A,
GNMA
Insured,
5.4%,
7/01/53
.........................
6,000,000
6,012,931
West
Knox
Utility
District
,
Revenue
,
2016
,
Refunding
,
5
%
,
6/01/41
..............
1,000,000
1,000,201
West
Wilson
Utility
District
of
Wilson
County
Tennessee
,
Revenue
,
2015
,
Refunding
,
5
%
,
6/01/40
......................................................
1,545,000
1,545,096
White
House
Utility
District
,
Revenue
,
2020
,
Refunding
,
3
%
,
1/01/34
.............
820,000
712,206
Williamson
County
HB
&
TS
Utility
District
,
Revenue
,
2020
,
Refunding
,
3
%
,
9/01/44
.
1,200,000
838,023
292,656,403
Texas
10.6%
Abilene
Convention
Center
Hotel
Development
Corp.
,
City
of
Abilene
Abilene
Convention
Center
,
Revenue,
First
Lien
,
2021
A
,
4
%
,
10/01/50
................
5,510,000
3,746,131
Aldine
Independent
School
District
,
GO
,
2017
A
,
Refunding
,
PSF
Guaranty
,
5
%
,
2/15/42
.........................................................
10,700,000
10,788,306
Aubrey
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
4
%
,
2/15/52
........
7,500,000
6,192,623
Austin
Community
College
District
,
GO
,
2023
,
5.25
%
,
8/01/53
..................
6,000,000
6,174,133
Carrollton-Farmers
Branch
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/15/53
.........................................................
10,000,000
8,291,271
Central
Texas
Turnpike
System
,
Revenue,
2015
C,
Refunding,
5%,
8/15/37
...............................
5,000,000
4,820,362
Revenue,
2015
C,
Refunding,
5%,
8/15/42
...............................
36,750,000
34,766,110
City
of
Arlington
,
Special
Tax,
Senior
Lien
,
2018
A
,
AGMC
Insured
,
4
%
,
2/15/44
.....
20,000,000
16,590,372
City
of
Austin
,
Electric
Utility,
Revenue,
2015
A,
Refunding,
5%,
11/15/45
...................
10,000,000
9,911,701
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)
Texas
(continued)
City
of
Austin,
(continued)
f
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.625%,
11/01/39
................................................
$
1,405,000
$
1,235,619
f
Whisper
Valley
Public
Improvement
District,
Special
Assessment,
144A,
2019,
4.75%,
11/01/48
.................................................
2,450,000
2,055,675
f
City
of
Celina
,
Sutton
Fields
II
Public
Improvement
District
,
Special
Assessment
,
144A,
2019
,
4.25
%
,
9/01/49
...............................................
3,065,000
2,342,554
City
of
Corpus
Christi
,
Utility
System,
Revenue,
2023,
Refunding,
4%,
7/15/48
.....................
9,000,000
7,616,217
Utility
System,
Revenue,
Junior
Lien,
2015
A,
5%,
7/15/40
...................
13,200,000
13,027,054
City
of
Dallas
,
DHFC
-
Briscoe
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
2022
A
,
6
%
,
12/01/62
.....................................................
19,000,000
17,642,093
f
City
of
Dallas
Housing
Finance
Corp.
,
DHFC
-
Dylan
Apartments
LLC
(The)
,
Revenue,
Senior
Lien
,
144A,
2022
A
,
6
%
,
12/01/62
................................
18,040,000
15,743,620
City
of
Houston
,
Airport
System
,
Revenue,
Sub.
Lien
,
2023
A
,
Refunding
,
AGMC
Insured
,
5.25
%
,
7/01/48
.............................................
5,000,000
4,931,588
City
of
Laredo
,
Waterworks
&
Sewer
System
,
Revenue
,
2016
,
Refunding
,
4
%
,
3/01/41
9,690,000
8,485,219
City
of
Leander
,
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/38
..................................................
1,275,000
935,523
Oak
Creek
Public
Improvement
District,
Special
Assessment,
2020,
Refunding,
3.25%,
9/01/44
..................................................
1,460,000
971,922
f
City
of
Mesquite
,
Heartland
Town
Center
Public
Improvement
District,
Special
Assessment,
144A,
2023,
5%,
9/01/43
................................................
816,000
739,603
Heartland
Town
Center
Public
Improvement
District,
Special
Assessment,
144A,
2023,
5.125%,
9/01/52
............................................
288,000
254,330
City
of
Pflugerville
,
GO
,
2023
,
4
%
,
8/01/49
................................
3,500,000
2,869,574
f
City
of
Princeton
,
Eastridge
Public
Improvement
District
Improvement
Area
No.
1
,
Special
Assessment
,
144A,
2022
,
5.25
%
,
9/01/52
.........................
1,376,000
1,188,521
f
City
of
Royse
City
,
Waterscape
Public
Improvement
District
Improvement
Area
No.
1,
Special
Assessment,
144A,
2017,
5%,
9/15/48
................................
2,700,000
2,363,567
Waterscape
Public
Improvement
District
Improvement
Area
No.
1
Phase
1B,
Special
Assessment,
144A,
2019,
4.375%,
9/15/39
.............................
610,000
520,235
Waterscape
Public
Improvement
District
Improvement
Area
No.
1
Phase
1B,
Special
Assessment,
144A,
2019,
4.5%,
9/15/48
...............................
1,260,000
1,010,250
Clifton
Higher
Education
Finance
Corp.
,
International
Leadership
of
Texas,
Inc.,
Revenue,
2022,
PSF
Guaranty,
4%,
8/15/42
2,150,000
1,809,587
International
Leadership
of
Texas,
Inc.,
Revenue,
2022,
PSF
Guaranty,
5%,
8/15/47
11,500,000
11,628,651
YES
Prep
Public
Schools,
Inc.,
Revenue,
2023,
PSF
Guaranty,
4.25%,
4/01/53
...
5,500,000
4,504,358
Comal
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/01/46
........
3,345,000
2,859,416
Community
Independent
School
District
,
GO
,
2022
B
,
PSF
Guaranty
,
4
%
,
2/15/50
...
2,750,000
2,288,557
Conroe
Local
Government
Corp.
,
Conroe
Convention
Center
Hotel,
Revenue,
First
Lien,
2021
A,
4%,
10/01/50
.....
1,640,000
1,138,689
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/32
....
90,000
94,515
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/33
....
100,000
104,805
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/34
....
100,000
105,196
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/35
....
85,000
88,869
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
5%,
10/01/36
....
85,000
88,048
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/41
....
600,000
502,316
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/46
....
700,000
551,502
Conroe
Convention
Center
Hotel,
Revenue,
Third
Lien,
2021
C,
4%,
10/01/50
....
650,000
498,380
Crowley
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
5.25
%
,
2/01/53
....
7,500,000
7,759,042
Dallas
Fort
Worth
International
Airport
,
Revenue
,
2013
D
,
Refunding
,
5.25
%
,
11/01/32
10,000,000
10,000,000
Del
Valle
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
4
%
,
6/15/47
......
7,500,000
6,511,125
f
EP
Cimarron
Ventanas
PFC
,
Revenue,
Senior
Lien
,
144A,
2021
A
,
4
%
,
12/01/51
....
33,600,000
21,848,763
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
Forney
Independent
School
District
,
GO
,
2015
,
Refunding
,
PSF
Guaranty
,
5
%
,
8/15/37
$
15,000,000
$
15,096,363
Frisco
Independent
School
District
,
GO
,
2016
,
PSF
Guaranty
,
5
%
,
8/15/46
........
20,000,000
20,066,934
Grand
Parkway
Transportation
Corp.
,
Revenue
,
2013
B
,
5.8
%
,
10/01/45
..........
10,000,000
10,395,590
Gulf
Coast
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2003
B
,
1.5
%
,
5/01/28
....
2,000,000
1,705,901
Harris
County
Cultural
Education
Facilities
Finance
Corp.
,
Houston
Methodist
Hospital
Obligated
Group
,
Revenue
,
2015
,
5
%
,
12/01/45
...........................
30,000,000
29,033,094
Harris
County-Houston
Sports
Authority
,
Revenue,
Senior
Lien
,
2020
A
,
Refunding
,
AGMC
Insured
,
3.125
%
,
11/15/56
.....................................
5,000,000
3,115,165
Harris-Waller
Counties
Municipal
Utility
District
No.
4
,
GO,
2022,
5%,
11/01/34
.............................................
795,000
764,052
GO,
2022,
5%,
11/01/38
.............................................
840,000
756,305
GO,
2022,
5.25%,
11/01/41
..........................................
1,435,000
1,296,016
GO,
2022,
5.5%,
11/01/44
...........................................
2,010,000
1,830,674
GO,
2022,
5.5%,
11/01/48
...........................................
5,445,000
4,825,501
Highland
Park
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/15/48
..
5,500,000
4,645,344
Humble
Independent
School
District
,
GO
,
2018
,
PSF
Guaranty
,
5
%
,
2/15/43
.......
10,000,000
10,084,117
Kaufman
County
Fresh
Water
Supply
District
No.
1-D
,
GO,
2021,
2.375%,
9/01/31
..........................................
165,000
127,665
GO,
2021,
2.375%,
9/01/32
..........................................
170,000
128,391
GO,
2021,
2.375%,
9/01/33
..........................................
170,000
125,535
GO,
2021,
2.5%,
9/01/34
............................................
180,000
130,615
GO,
2021,
2.5%,
9/01/36
............................................
370,000
249,903
GO,
2021,
2.625%,
9/01/38
..........................................
385,000
243,522
GO,
2021,
3%,
9/01/41
.............................................
375,000
236,605
GO,
2021,
3%,
9/01/46
.............................................
750,000
435,040
GO,
2021,
3%,
9/01/51
.............................................
1,265,000
692,508
f
Lakeside
Place
PFC
,
Torrey
Chase
Apartments
LP
,
Revenue
,
144A,
2021
,
3.48
%
,
12/15/39
........................................................
12,625,000
8,663,317
Lamar
Consolidated
Independent
School
District
,
GO,
2018,
PSF
Guaranty,
5%,
2/15/43
..................................
6,800,000
6,855,141
GO,
2023,
4%,
2/15/53
.............................................
5,000,000
4,033,313
GO,
2023
A,
PSF
Guaranty,
5%,
2/15/58
................................
7,000,000
7,050,471
Lubbock-Cooper
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4.375
%
,
2/15/53
.........................................................
15,000,000
13,224,258
Medina
Valley
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/15/53
..
15,000,000
12,467,070
New
Hope
Cultural
Education
Facilities
Finance
Corp.
,
NCCD-Cain
Hall
Redevelopment
I
LLC,
Revenue,
2016
A-1,
5%,
4/01/46
........
6,000,000
6,029,909
NCCD-College
Station
Properties
LLC,
Revenue,
A,
5%,
7/01/47
..............
10,000,000
9,075,000
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/39
.......................................................
5,650,000
5,120,749
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/49
.......................................................
11,470,000
9,610,457
Quality
Senior
Housing
Foundation
of
East
Texas,
Inc.,
Revenue,
2019
A-1,
5%,
12/01/54
.......................................................
230,000
187,302
Westminster
Manor,
Revenue,
2021,
4%,
11/01/49
.........................
14,400,000
10,541,779
Newark
Higher
Education
Finance
Corp.
,
Abilene
Christian
University
,
Revenue
,
2022
A
,
Refunding
,
4
%
,
4/01/57
...........................................
5,000,000
3,694,723
North
Harris
County
Regional
Water
Authority
,
Revenue,
Senior
Lien,
2016,
Refunding,
4%,
12/15/41
......................
10,000,000
8,623,625
Revenue,
Senior
Lien,
2016,
Refunding,
5%,
12/15/46
......................
18,460,000
18,372,453
North
Texas
Tollway
Authority
,
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/35
.........
10,000,000
10,017,192
North
Texas
Tollway
System,
Revenue,
2015
A,
Refunding,
5%,
1/01/38
.........
10,000,000
9,795,439
North
Texas
Tollway
System,
Revenue,
First
Tier,
2017
A,
Refunding,
5%,
1/01/43
.
10,000,000
10,049,377
North
Texas
Tollway
System,
Revenue,
First
Tier,
I,
Pre-Refunded,
6.5%,
1/01/43
..
25,000,000
25,701,710
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2017
B,
Refunding,
5%,
1/01/48
5,000,000
4,978,602
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
37
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Texas
(continued)
North
Texas
Tollway
Authority,
(continued)
North
Texas
Tollway
System,
Revenue,
Second
Tier,
2018,
Refunding,
5%,
1/01/48
$
25,250,000
$
25,136,019
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/37
....
7,500,000
3,454,453
Special
Projects
System,
Revenue,
2011
B,
Pre-Refunded,
Zero
Cpn.,
9/01/43
....
7,500,000
2,201,687
Special
Projects
System,
Revenue,
2011
C,
Pre-Refunded,
6.75%,
9/01/45
......
25,000,000
29,624,490
Northwest
Independent
School
District
,
GO
,
2023
,
PSF
Guaranty
,
4
%
,
2/15/48
.....
7,000,000
6,002,067
Port
Freeport
,
Revenue,
Senior
Lien
,
2019
A
,
5
%
,
6/01/49
.....................
4,000,000
3,585,189
San
Antonio
Education
Facilities
Corp.
,
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/46
......
13,705,000
10,279,612
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/51
......
3,765,000
2,699,520
University
of
the
Incarnate
Word,
Revenue,
2021
A,
Refunding,
4%,
4/01/54
......
1,035,000
728,131
San
Antonio
Public
Facilities
Corp.
,
City
of
San
Antonio
,
Revenue
,
2012
,
Refunding
,
4
%
,
9/15/42
......................................................
36,500,000
30,323,014
San
Jacinto
River
Authority
,
Revenue,
2011,
AGMC
Insured,
5%,
10/01/32
............................
5,000,000
5,000,968
Revenue,
2011,
AGMC
Insured,
5%,
10/01/37
............................
3,000,000
2,944,138
Sherman
Independent
School
District
,
GO
,
2023
B
,
PSF
Guaranty
,
5
%
,
2/15/53
....
5,000,000
5,050,351
Southwest
Higher
Education
Authority,
Inc.
,
Southern
Methodist
University
,
Revenue
,
2013
A
,
Refunding
,
5
%
,
10/01/38
......................................
24,380,000
24,398,058
Tarrant
County
Cultural
Education
Facilities
Finance
Corp.
,
CHRISTUS
Health
Obligated
Group,
Revenue,
2018
B,
5%,
7/01/43
...........
10,000,000
9,732,050
CHRISTUS
Health
Obligated
Group,
Revenue,
2022
A,
4%,
7/01/53
............
3,100,000
2,387,138
CHRISTUS
Health
Obligated
Group,
Revenue,
2022
A,
5%,
7/01/53
............
15,000,000
13,975,366
Cook
Children's
Medical
Center
Obligated
Group,
Revenue,
2013
A,
Refunding,
5.25%,
12/01/39
.................................................
10,000,000
10,009,650
Texas
Health
Resources
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
2/15/41
15,165,000
15,009,650
Tarrant
County
Health
Facilities
Development
Corp.
,
Texas
Health
Resources
Obligated
Group,
Revenue,
1994,
FGIC
Insured,
ETM,
6%,
9/01/24
........................................................
935,000
950,342
Texas
Department
of
Housing
&
Community
Affairs
,
Revenue
,
2023
A
,
GNMA
Insured
,
5.25
%
,
1/01/53
...................................................
14,000,000
13,892,696
Texas
Municipal
Gas
Acquisition
&
Supply
Corp.
III
,
Revenue,
2021,
Refunding,
5%,
12/15/29
................................
12,715,000
12,500,241
Revenue,
2021,
Refunding,
5%,
12/15/32
................................
10,350,000
10,046,199
Texas
Private
Activity
Bond
Surface
Transportation
Corp.
,
NTE
Mobility
Partners
LLC
,
Revenue,
Senior
Lien
,
2023
,
5.5
%
,
12/31/58
.............................
6,000,000
6,035,988
Texas
Transportation
Commission
,
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/48
......
6,250,000
1,366,100
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/49
......
5,000,000
1,022,771
State
Highway
249
System,
Revenue,
First
Tier,
2019
A,
Zero
Cpn.,
8/01/50
......
5,500,000
1,056,449
Texas
Water
Development
Board
,
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2018
B,
4%,
10/15/43
.......................................................
25,000,000
21,813,783
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2019
A,
4%,
10/15/49
.......................................................
20,000,000
16,914,592
State
Water
Implementation
Revenue
Fund
for
Texas,
Revenue,
2022,
5%,
10/15/47
16,050,000
16,251,506
f
Town
of
Little
Elm
,
Valencia
Public
Improvement
District
Improvement
Area
No.
3,
Special
Assessment,
144A,
2021,
3.125%,
9/01/41
.......................................
708,000
470,053
Valencia
Public
Improvement
District
Improvement
Area
No.
3,
Special
Assessment,
144A,
2021,
4%,
9/01/47
...........................................
831,000
619,948
Town
of
Ponder
,
Ponder
Public
Improvement
District
No.
1,
Special
Assessment,
2017,
5%,
9/01/45
500,000
440,657
Ponder
Public
Improvement
District
No.
1,
Special
Assessment,
2017,
5%,
9/01/47
865,000
756,628
i
Viridian
Municipal
Management
District
,
GO
,
2023
,
AGMC
Insured
,
5
%
,
12/01/49
...
1,000,000
923,440
West
Travis
County
Public
Utility
Agency
,
Revenue
,
2017
,
Refunding
,
BAM
Insured
,
4
%
,
8/15/41
......................................................
5,000,000
4,355,115
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)
Westside
211
Special
Improvement
District
,
GO,
Sub.
Lien,
2021,
3%,
8/15/41
.....................................
$
790,000
$
532,928
GO,
Sub.
Lien,
2021,
3%,
8/15/45
.....................................
615,000
387,131
GO,
Sub.
Lien,
2021,
3%,
8/15/51
.....................................
1,570,000
913,419
GO,
Sub.
Lien,
2022,
5.625%,
8/15/52
..................................
1,065,000
983,236
Ysleta
Independent
School
District
,
GO
,
2022
,
PSF
Guaranty
,
5
%
,
8/15/56
........
23,445,000
23,567,392
886,014,884
Utah
1.1%
Central
Utah
Water
Conservancy
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
10/01/38
10,000,000
9,095,150
City
of
Bountiful
,
Sales
Tax
,
Revenue
,
2023
,
4
%
,
7/01/53
......................
6,840,000
5,551,696
City
of
Salt
Lake
City
,
Airport,
Revenue,
2018
A,
5%,
7/01/48
..................................
25,110,000
23,617,735
Airport,
Revenue,
2021
A,
5%,
7/01/51
..................................
10,000,000
9,362,820
Airport,
Revenue,
2023
A,
5.25%,
7/01/53
...............................
10,000,000
9,776,582
Jordan
Valley
Water
Conservancy
District
,
Revenue
,
2017
B
,
Refunding
,
4
%
,
10/01/41
6,000,000
5,218,579
University
of
Utah
(The)
,
Revenue
,
2022
A
,
5
%
,
8/01/46
......................
9,645,000
9,822,509
Utah
Infrastructure
Agency
,
Revenue,
2021,
3%,
10/15/26
........................................
550,000
520,349
Revenue,
2021,
4%,
10/15/28
........................................
350,000
336,137
Revenue,
2021,
4%,
10/15/32
........................................
540,000
496,995
Revenue,
2021,
4%,
10/15/38
........................................
500,000
406,554
Revenue,
2021,
4%,
10/15/41
........................................
1,450,000
1,122,229
Revenue,
2021,
3%,
10/15/45
........................................
2,000,000
1,206,358
Revenue,
2022,
5%,
10/15/37
........................................
1,200,000
1,121,549
Revenue,
2022,
5%,
10/15/46
........................................
3,650,000
3,132,756
Utah
Municipal
Power
Agency
,
Revenue
,
2016
B
,
5
%
,
7/01/38
..................
10,000,000
10,137,877
90,925,875
Vermont
0.1%
Vermont
Educational
&
Health
Buildings
Financing
Agency
,
President
&
Fellows
of
Middlebury
College,
Revenue,
2020,
Refunding,
5%,
11/01/49
4,000,000
4,016,549
University
of
Vermont
Health
Network
Obligated
Group,
Revenue,
2016
A,
Refunding,
5%,
12/01/36
...........................................
5,000,000
4,965,115
8,981,664
Virginia
0.5%
Amelia
County
Industrial
Development
Authority
,
Waste
Management,
Inc.
,
Revenue
,
2002
,
Refunding
,
1.45
%
,
4/01/27
......................................
2,350,000
2,083,627
Hampton
Roads
Transportation
Accountability
Commission
,
Revenue,
Senior
Lien
,
2020
A
,
5
%
,
7/01/60
................................................
19,000,000
19,168,629
Virginia
Resources
Authority
,
Revenue
,
2012
A
,
5
%
,
11/01/39
..................
70,000
70,011
Virginia
Small
Business
Financing
Authority
,
Capital
Beltway
Express
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
5%,
12/31/52
3,730,000
3,481,112
Capital
Beltway
Express
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
5%,
12/31/57
6,270,000
5,769,524
Elizabeth
River
Crossings
OpCo
LLC,
Revenue,
Senior
Lien,
2022,
Refunding,
4%,
1/01/39
........................................................
5,520,000
4,691,968
National
Senior
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
1/01/51
....................................................
4,000,000
3,035,301
38,300,172
Washington
2.4%
e
Align
Capital
Trust
,
Revenue
,
2020-4A
,
Mandatory
Put
,
3.75
%
,
1/01/26
...........
10,139,330
9,613,608
City
of
Seattle
,
Municipal
Light
&
Power,
Revenue,
2017
C,
Refunding,
4%,
9/01/36
............
15,000,000
14,073,123
Municipal
Light
&
Power,
Revenue,
2018
A,
4%,
1/01/42
.....................
10,855,000
9,628,462
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)
Washington
(continued)
Everett
Housing
Authority
,
Revenue
,
2022
,
Refunding
,
4
%
,
7/01/37
..............
$
34,480,000
$
29,403,837
Grant
County
Public
Hospital
District
No.
1
,
GO
,
2023
,
5.125
%
,
12/01/52
.........
4,500,000
4,011,834
NJB
Properties
,
Revenue
,
2006
A
,
5
%
,
12/01/36
............................
5,000
5,003
Port
of
Seattle
,
Revenue,
2018
A,
5%,
5/01/38
........................................
15,000,000
14,750,460
Revenue,
2019,
4%,
4/01/44
.........................................
4,000,000
3,295,100
University
of
Washington
,
Revenue
,
2018
,
5
%
,
4/01/48
.......................
29,450,000
29,617,267
Washington
Health
Care
Facilities
Authority
,
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
2020,
Refunding,
4%,
9/01/45
........................................................
2,610,000
2,107,272
f
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/29
.......................................................
250,000
256,767
f
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/30
.......................................................
265,000
272,288
f
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
5%,
12/01/33
.......................................................
250,000
256,489
f
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
3%,
12/01/34
.......................................................
300,000
246,573
f
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/40
.......................................................
870,000
741,474
f
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/45
.......................................................
1,200,000
966,353
f
Fred
Hutchinson
Cancer
Center
Obligated
Group,
Revenue,
144A,
2021,
4%,
12/01/48
.......................................................
910,000
711,790
Multicare
Health
System
Obligated
Group,
Revenue,
2017
B,
Refunding,
4%,
8/15/41
25,000,000
21,326,527
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2012
A,
5%,
10/01/42
..
10,175,000
9,623,922
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2014
D,
Refunding,
5%,
10/01/38
.......................................................
8,000,000
7,745,618
Providence
St.
Joseph
Health
Obligated
Group,
Revenue,
2014
D,
Pre-Refunded,
5%,
10/01/41
...................................................
315,000
317,563
Washington
Higher
Education
Facilities
Authority
,
Seattle
Pacific
University
,
Revenue
,
2020
A
,
Refunding
,
5
%
,
10/01/42
......................................
3,800,000
3,388,302
Washington
State
Convention
Center
Public
Facilities
District
,
Lodging
Tax
,
Revenue
,
2021
B
,
Refunding
,
4
%
,
7/01/43
.......................................
14,855,000
12,381,950
Washington
State
Housing
Finance
Commission
,
Revenue,
2021-1,
A,
3.5%,
12/20/35
...................................
21,219,001
18,028,729
f
Madison
at
Rivers
Edge
Apartments
LLC,
Revenue,
144A,
2021
A,
3.65%,
1/01/37
2,965,000
2,209,723
f
Seattle
Academy
of
Arts
&
Sciences,
Revenue,
144A,
2023,
Refunding,
6.375%,
7/01/63
........................................................
5,000,000
4,959,145
199,939,179
West
Virginia
0.7%
e
West
Virginia
Economic
Development
Authority
,
Kentucky
Power
Co.
,
Revenue
,
2014
A
,
Refunding
,
Mandatory
Put
,
4.7
%
,
6/17/26
.............................
6,000,000
5,906,747
West
Virginia
Hospital
Finance
Authority
,
Cabell
Huntington
Hospital
Obligated
Group,
Revenue,
2018
A,
Refunding,
5%,
1/01/43
........................................................
13,250,000
12,057,921
Vandalia
Health,
Inc.
Obligated
Group,
Revenue,
2019
A,
Refunding,
5%,
9/01/38
.
3,040,000
2,864,077
Vandalia
Health,
Inc.
Obligated
Group,
Revenue,
2023
B,
Refunding,
6%,
9/01/53
.
3,000,000
3,091,464
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2017
A,
5%,
6/01/47
7,000,000
6,713,435
West
Virginia
United
Health
System
Obligated
Group,
Revenue,
2018
A,
5%,
6/01/52
20,700,000
19,659,815
West
Virginia
Water
Development
Authority
,
Revenue,
2016
A,
Refunding,
5%,
10/01/36
..............................
5,000,000
5,091,309
Revenue,
2016
A,
Refunding,
5%,
10/01/45
..............................
5,435,000
5,497,158
60,881,926
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
4.2%
Public
Finance
Authority
,
f
Revenue,
144A,
2022,
B-1,
4%,
12/28/44
................................
$
21,085,631
$
15,132,137
2017
IAVF
Rubix
LLC,
Revenue,
2020
A,
4.25%,
12/01/50
...................
3,750,000
2,589,054
ACTS
Retirement-Life
Communities,
Inc.
Obligated
Group,
Revenue,
2020
A,
5%,
11/15/41
.......................................................
1,205,000
1,108,129
f
AL-FL
Portfolio
Obligated
Group,
Revenue,
144A,
2021
A,
3.4%,
12/01/36
.......
39,000,000
29,050,316
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/46
........................................................
5,075,000
3,646,466
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/51
........................................................
5,705,000
3,907,413
Appalachian
Regional
Healthcare
System
Obligated
Group,
Revenue,
2021
A,
4%,
7/01/56
........................................................
2,250,000
1,491,247
Blue
Ridge
Healthcare
Obligated
Group,
Revenue,
2020
A,
Refunding,
3%,
1/01/50
2,185,000
1,374,468
CFC-SA
LLC,
Revenue,
Senior
Lien,
2022
A,
5%,
2/01/62
...................
10,000,000
8,439,281
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/41
..........
1,000,000
761,412
Coral
Academy
of
Science
Las
Vegas,
Revenue,
2021
A,
4%,
7/01/61
..........
10,000,000
6,358,167
e
Duke
Energy
Progress
LLC,
Revenue,
2022
B,
Refunding,
Mandatory
Put,
4%,
10/01/30
.......................................................
2,200,000
2,103,678
EMU
Campus
Living
LLC,
Revenue,
2022
A-1,
BAM
Insured,
5.5%,
7/01/52
......
5,000,000
5,134,980
EMU
Campus
Living
LLC,
Revenue,
2022
A-1,
BAM
Insured,
5.625%,
7/01/55
....
6,620,000
6,850,405
f
FAH
Tree
House
LLC,
Revenue,
144A,
2023
A,
6.5%,
8/01/53
................
22,945,000
20,699,600
f,h
Greystone
Housing
Impact
Investors
LP,
Revenue,
144A,
2023,
B-1,
7.125%,
7/25/34
27,000,000
27,025,998
f
Gulf
Coast
Portfolio
Obligated
Group,
Revenue,
144A,
2021,
5.25%,
12/01/23
....
42,800,000
42,816,692
f
Hope
Housing
Foundation
Obligated
Group,
Revenue,
144A,
2022
A,
3.8%,
12/01/37
24,375,000
18,085,958
f
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
A,
6.5%,
12/01/52
.....
22,565,000
20,224,150
f
Pine
Forest
2022
Obligated
Group,
Revenue,
144A,
2022
B,
7.5%,
12/01/29
.....
2,645,000
2,463,411
RED
River
Valley
Alliance
LLC,
Revenue,
2021,
4%,
9/30/51
.................
730,000
527,316
RED
River
Valley
Alliance
LLC,
Revenue,
2021,
4%,
3/31/56
.................
30,185,000
21,108,005
Renown
Regional
Medical
Center
Obligated
Group,
Revenue,
2020
A,
Refunding,
4%,
6/01/45
....................................................
14,000,000
10,976,389
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/39
............................................
4,755,000
3,481,964
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/41
............................................
5,145,000
3,654,519
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/46
............................................
11,980,000
8,004,786
Southeastern
Regional
Medical
Center
Obligated
Group,
Revenue,
2021
A,
Refunding,
4%,
2/01/51
............................................
2,000,000
1,272,791
Triad
Educational
Services,
Inc.,
Revenue,
2022,
5.25%,
6/15/52
..............
1,610,000
1,351,829
Triad
Educational
Services,
Inc.,
Revenue,
2022,
5.375%,
6/15/57
.............
1,550,000
1,305,240
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/41
............
1,280,000
971,871
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/51
............
10,000
6,736
Triad
Math
&
Science
Academy
Co.,
Revenue,
2021
A,
4%,
6/15/61
............
6,000,000
3,794,873
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/41
...........................................
1,010,000
791,920
United
Methodist
Retirement
Homes,
Inc.
Obligated
Group
(The),
Revenue,
2021
A,
Refunding,
4%,
10/01/51
...........................................
2,185,000
1,515,337
e,f
WV
2020
Holdings
LLC
Obligated
Group,
Revenue,
144A,
2020
A-2,
Mandatory
Put,
4%,
12/01/35
...................................................
29,600,000
23,183,179
Wisconsin
Center
District
,
Revenue,
Junior
Lien
,
2020
D
,
AGMC
Insured
,
Zero
Cpn.,
12/15/45
........................................................
20,000,000
6,120,192
Wisconsin
Health
&
Educational
Facilities
Authority
,
Children's
Hospital
of
Wisconsin
Obligated
Group,
Revenue,
2017,
Refunding,
4%,
8/15/42
........................................................
15,000,000
12,797,758
Marshfield
Clinic
Health
System
Obligated
Group,
Revenue,
2017
C,
Refunding,
5%,
2/15/47
........................................................
20,000,000
17,789,988
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
41
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
Wisconsin
(continued)
Wisconsin
Health
&
Educational
Facilities
Authority,
(continued)
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/47
....................................................
$
5,200,000
$
3,000,216
Oakwood
Lutheran
Senior
Ministries
Obligated
Group,
Revenue,
2021,
Refunding,
4%,
1/01/57
....................................................
1,400,000
738,343
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/36
........................................................
530,000
434,609
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/41
........................................................
510,000
383,888
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2021
B,
Refunding,
4%,
9/15/45
........................................................
475,000
338,249
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/36
........................................................
775,000
635,513
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/41
........................................................
770,000
579,596
St.
John's
Communities,
Inc.
Obligated
Group,
Revenue,
2022,
Refunding,
4%,
9/15/45
........................................................
650,000
462,868
Thedacare,
Inc.
Obligated
Group,
Revenue,
2019,
Refunding,
4%,
12/15/37
......
5,135,000
4,393,449
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/46
......
895,000
645,122
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/51
......
1,335,000
918,611
Wisconsin
Masonic
Home
Obligated
Group,
Revenue,
2021
A,
4%,
8/15/55
......
1,760,000
1,178,473
351,626,592
U.S.
Territories
3.5%
District
of
Columbia
2.3%
District
of
Columbia
,
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/24
.....................
12,120,000
12,129,269
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/25
.....................
7,000,000
7,003,887
Revenue,
2006
B-1,
BHAC,
FGIC
Insured,
5%,
2/01/26
.....................
9,950,000
9,954,293
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/42
..........
20,535,000
19,929,856
Catholic
University
of
America
(The),
Revenue,
2017
B,
5%,
10/01/47
..........
25,110,000
23,787,386
Catholic
University
of
America
(The),
Revenue,
2018,
Refunding,
5%,
10/01/43
...
4,000,000
3,868,149
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/49
............
1,000,000
890,200
International
School
Obligated
Group,
Revenue,
2019,
5%,
7/01/54
............
1,905,000
1,667,623
Water
&
Sewer
Authority,
Revenue,
Senior
Lien,
2018
A,
5%,
10/01/49
..........
25,000,000
25,118,880
Metropolitan
Washington
Airports
Authority
,
Aviation,
Revenue,
2018
A,
Refunding,
5%,
10/01/48
.......................
10,275,000
9,715,228
Aviation,
Revenue,
2019
A,
Refunding,
5%,
10/01/49
.......................
24,750,000
23,543,781
Aviation,
Revenue,
2023
A,
Refunding,
5.25%,
10/01/53
.....................
6,000,000
5,944,789
Dulles
Toll
Road,
Revenue,
Second
Lien,
2009
C,
Pre-Refunded,
AGMC
Insured,
6.5%,
10/01/41
..................................................
25,000,000
26,830,820
Dulles
Toll
Road,
Revenue,
Sub.
Lien,
2019
B,
Refunding,
4%,
10/01/49
........
13,555,000
10,623,677
Washington
Metropolitan
Area
Transit
Authority
,
Dedicated
,
Revenue
,
2021
A
,
4
%
,
7/15/43
.........................................................
12,775,000
11,158,176
192,166,014
Puerto
Rico
1.2%
HTA
HRRB
Custodial
Trust
,
Revenue,
2007
CC,
5.25%,
7/01/34
....................................
2,385,000
2,392,984
Revenue,
2007
CC,
5.25%,
7/01/36
....................................
11,980,000
12,031,180
HTA
TRRB
Custodial
Trust
,
Revenue,
2005
L,
5.25%,
7/01/41
.....................................
14,485,000
14,213,519
Revenue,
2007
N,
5.25%,
7/01/36
.....................................
2,725,000
2,736,642
Revenue,
2007
N,
5.25%,
7/01/39
.....................................
87,512
87,999
Puerto
Rico
Electric
Power
Authority
,
b,i
Revenue,
6%,
7/01/41
..............................................
3,809,333
3,809,333
b,i
Revenue,
7.125%,
7/01/59
...........................................
18,500,231
18,500,231
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
42
a
a
Principal
Amount
a
Value
a
a
a
a
a
Municipal
Bonds
(continued)
U.S.
Territories
(continued)
Puerto
Rico
(continued)
Puerto
Rico
Electric
Power
Authority,
(continued)
j
Revenue,
2012
A,
5%,
7/01/42
........................................
$
18,925,000
$
4,778,562
Revenue,
VV,
Refunding,
NATL
Insured,
5.25%,
7/01/32
....................
5,780,000
5,702,910
j
Revenue,
XX,
5.25%,
7/01/40
........................................
15,000,000
3,787,500
Puerto
Rico
Highway
&
Transportation
Authority
,
Revenue,
2022
A,
5%,
7/01/62
........................................
698,767
690,033
Revenue,
2022
B,
Zero
Cpn.,
7/01/32
...................................
454,104
290,059
Revenue,
2022
C,
Zero
Cpn.,
7/01/53
..................................
776,785
499,087
j
Puerto
Rico
Industrial
Tourist
Educational
Medical
&
Environmental
Control
Facilities
Financing
Authority
,
AES
Puerto
Rico
LP
,
Revenue
,
2000
A
,
6.625
%
,
6/01/26
.....
3,500,000
2,450,000
Puerto
Rico
Sales
Tax
Financing
Corp.
,
Sales
Tax,
Revenue,
A-1,
5%,
7/01/58
..................................
27,576,000
24,143,006
Sales
Tax,
Revenue,
A-2,
4.784%,
7/01/58
...............................
5,593,000
4,704,292
100,817,337
Total
U.S.
Territories
....................................................................
292,983,351
Total
Municipal
Bonds
(Cost
$9,138,402,737)
...................................
8,231,232,040
Shares
Escrows
and
Litigation
Trusts
0.0%
†
b,k
Puerto
Rico
Electric
Power
Authority,
Escrow
Account
........................
1,723,393
1,378,715
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
...................................
1,378,715
Total
Long
Term
Investments
(Cost
$9,200,781,895)
.............................
8,291,963,355
a
a
a
a
a
Short
Term
Investments
0.7%
Principal
Amount
Municipal
Bonds
0.7%
California
0.0%
†
l
Irvine
Ranch
Water
District
,
Water
Service
Corp.
,
Special
Assessment
,
2009
B
,
LOC
Bank
of
America
NA
,
Daily
VRDN
and
Put
,
2.25
%
,
10/01/41
..................
600,000
600,000
Minnesota
0.1%
l
City
of
Minneapolis
,
Fairview
Health
Services
Obligated
Group
,
Revenue
,
2018
C
,
Refunding
,
LOC
Wells
Fargo
Bank
NA
,
Daily
VRDN
and
Put
,
3.95
%
,
11/15/48
....
3,100,000
3,100,000
New
York
0.2%
l
City
of
New
York
,
GO
,
2020
B-3
,
Daily
VRDN
and
Put
,
4.28
%
,
10/01/46
...........
700,000
700,000
l
Nassau
County
Industrial
Development
Agency
,
Cold
Spring
Harbor
Laboratory
,
Revenue
,
1999
,
Refunding
,
SPA
TD
Bank
NA
,
Daily
VRDN
and
Put
,
3.85
%
,
1/01/34
1,200,000
1,200,000
l
New
York
City
,
Water
&
Sewer
System
,
Revenue
,
2007
CC-2
,
SPA
State
Street
Bank
&
Trust
Co.
,
Daily
VRDN
and
Put
,
4
%
,
6/15/38
.............................
3,000,000
3,000,000
l
New
York
City
Municipal
Water
Finance
Authority
,
Water
&
Sewer
System,
Revenue,
2022
DD,
Refunding,
Daily
VRDN
and
Put,
4.28%,
6/15/33
........................................................
14,220,000
14,220,000
Water
&
Sewer
System,
Revenue,
BB-1A,
SPA
State
Street
Bank
&
Trust
Co.,
Daily
VRDN
and
Put,
4%,
6/15/49
........................................
2,600,000
2,600,000
21,720,000
Ohio
0.2%
l
County
of
Allen
Hospital
Facilities
,
Bon
Secours
Mercy
Health,
Inc.
,
Revenue
,
2010
C
,
LOC
Bank
of
Montreal
,
Daily
VRDN
and
Put
,
4
%
,
6/01/34
...................
11,900,000
11,900,000
Franklin
Federal
Tax-Free
Income
Fund
Schedule
of
Investments
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
43
Short
Term
Investments
(continued)
a
a
Principal
Amount
a
Value
Municipal
Bonds
(continued)
Ohio
(continued)
l
Ohio
Higher
Educational
Facility
Commission
,
Cleveland
Clinic
Health
System
Obligated
Group
,
Revenue
,
2013
B-3
,
SPA
US
Bank
NA
,
Daily
VRDN
and
Put
,
4
%
,
1/01/39
.........................................................
$
2,325,000
$
2,325,000
14,225,000
Oregon
0.1%
l
Oregon
State
Facilities
Authority
,
PeaceHealth
Obligated
Group,
Revenue,
2018
A,
Refunding,
LOC
US
Bank
NA,
Daily
VRDN
and
Put,
4%,
8/01/34
....................................
6,300,000
6,300,000
PeaceHealth
Obligated
Group,
Revenue,
2018
B,
Refunding,
LOC
TD
Bank
NA,
Daily
VRDN
and
Put,
3.95%,
8/01/34
.................................
800,000
800,000
7,100,000
Wisconsin
0.1%
l
Wisconsin
Health
&
Educational
Facilities
Authority
,
Froedtert
Health,
Inc.
Obligated
Group
,
Revenue
,
2021
A
,
Refunding
,
Daily
VRDN
and
Put
,
4
%
,
4/01/35
.........
8,000,000
8,000,000
Total
Municipal
Bonds
(Cost
$54,745,000)
......................................
54,745,000
Total
Short
Term
Investments
(Cost
$54,745,000
)
................................
54,745,000
a
Total
Investments
(Cost
$9,255,526,895)
99.6%
..................................
$8,346,708,355
Other
Assets,
less
Liabilities
0.4%
.............................................
36,097,959
Net
Assets
100.0%
...........................................................
$8,382,806,314
See
Abbreviations
on
page
56
.
†
Rounds
to
less
than
0.1%
of
net
assets.  
a
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.  
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.  
c
See
Note
1(c)
regarding
senior
floating
rate
interests.  
d
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.  
e
The
maturity
date
shown
represents
the
mandatory
put
date.  
f
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,
2023,
the
aggregate
value
of
these
securities
was
$809,129,491,
representing
9.7%
of
net
assets.  
g
The
coupon
rate
shown
represents
the
rate
at
period
end.  
h
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).  
i
Security
purchased
on
a
when-issued
basis.
See
Note
1(b).  
j
See
Note
7
regarding
defaulted
securities.  
k
Non-income
producing.  
l
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,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
44
Franklin
Federal
Tax-
Free
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$9,253,271,162
Cost
-
Non-controlled
affiliates
(Note
3f)
........................................................
2,255,733
Value
-
Unaffiliated
issuers
..................................................................
$8,344,885,675
Value
-
Non-controlled
affiliates
(Note
3f)
........................................................
1,822,680
Cash
....................................................................................
681,024
Receivables:
Investment
securities
sold
...................................................................
32,454,857
Capital
shares
sold
........................................................................
7,752,369
Interest
.................................................................................
116,446,352
Total
assets
..........................................................................
8,504,042,957
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
89,900,331
Capital
shares
redeemed
...................................................................
22,682,802
Management
fees
.........................................................................
3,210,751
Distribution
fees
..........................................................................
890,848
Transfer
agent
fees
........................................................................
1,052,024
Trustees'
fees
and
expenses
.................................................................
24
Distributions
to
shareholders
.................................................................
2,209,280
Accrued
expenses
and
other
liabilities
...........................................................
1,290,583
Total
liabilities
.........................................................................
121,236,643
Net
assets,
at
value
.................................................................
$8,382,806,314
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$10,059,689,171
Total
distributable
earnings
(losses)
.............................................................
(1,676,882,857)
Net
assets,
at
value
.................................................................
$8,382,806,314
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
October
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
45
Franklin
Federal
Tax-
Free
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$1,801,987,530
Shares
outstanding
........................................................................
181,745,514
Net
asset
value
per
share
a
..................................................................
$9.91
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$10.30
Class
A1:
Net
assets,
at
value
.......................................................................
$4,558,633,862
Shares
outstanding
........................................................................
459,753,802
Net
asset
value
per
share
a
..................................................................
$9.92
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$10.31
Class
C:
Net
assets,
at
value
.......................................................................
$191,567,644
Shares
outstanding
........................................................................
19,335,590
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$9.91
Class
R6:
Net
assets,
at
value
.......................................................................
$650,294,684
Shares
outstanding
........................................................................
65,528,547
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$9.92
Advisor
Class:
Net
assets,
at
value
.......................................................................
$1,180,322,594
Shares
outstanding
........................................................................
118,916,655
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$9.93
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,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
46
Franklin
Federal
Tax-
Free
Income
Fund
Investment
income:
Dividends:
Non-controlled
affiliates
(Note
3f)
.............................................................
$34,225
Interest:
Unaffiliated
issuers
........................................................................
193,922,580
Total
investment
income
...................................................................
193,956,805
Expenses:
Management
fees
(Note
3
a
)
...................................................................
20,218,543
Distribution
fees:
(Note
3c
)
    Class
A
................................................................................
2,404,527
    Class
A1
...............................................................................
2,502,521
    Class
C
................................................................................
733,058
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
611,215
    Class
A1
...............................................................................
1,590,648
    Class
C
................................................................................
71,711
    Class
R6
...............................................................................
81,540
    Advisor
Class
............................................................................
323,715
Custodian
fees
(Note
4
)
......................................................................
25,640
Reports
to
shareholders
fees
..................................................................
140,808
Registration
and
filing
fees
....................................................................
195,360
Professional
fees
...........................................................................
317,511
Trustees'
fees
and
expenses
..................................................................
54,417
Other
....................................................................................
214,419
Total
expenses
.........................................................................
29,485,633
Expense
reductions
(Note
4
)
...............................................................
(25,791)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(2,907)
Net
expenses
.........................................................................
29,456,935
Net
investment
income
................................................................
164,499,870
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(52,622,585)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(642,531,018)
Non-controlled
affiliates
(Note
3f)
............................................................
(158,530)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(642,689,548)
Net
realized
and
unrealized
gain
(loss)
............................................................
(695,312,133)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(530,812,263)
Franklin
Federal
Tax-Free
Income
Fund
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
47
Franklin
Federal
Tax-Free
Income
Fund
Six
Months
Ended
October
31,
2023
(unaudited)
Year
Ended
April
30,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$164,499,870
$322,075,585
Net
realized
gain
(loss)
.................................................
(52,622,585)
(202,703,894)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(642,689,548)
(53,053,291)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(530,812,263)
66,318,400
Distributions
to
shareholders:
Class
A
.............................................................
(32,746,606)
(59,671,683)
Class
A1
............................................................
(88,907,884)
(185,449,220)
Class
C
.............................................................
(3,384,992)
(7,860,346)
Class
R6
............................................................
(16,931,503)
(27,609,822)
Advisor
Class
........................................................
(18,685,698)
(38,577,120)
Total
distributions
to
shareholders
..........................................
(160,656,683)
(319,168,191)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
9,285,293
67,070,974
Class
A1
............................................................
(278,466,120)
(892,032,423)
Class
C
.............................................................
(38,692,258)
(85,671,860)
Class
R6
............................................................
(233,367,306)
207,653,888
Advisor
Class
........................................................
261,949,109
(350,007,043)
Total
capital
share
transactions
............................................
(279,291,282)
(1,052,986,464)
Net
increase
(decrease)
in
net
assets
...................................
(970,760,228)
(1,305,836,255)
Net
assets:
Beginning
of
period
.....................................................
9,353,566,542
10,659,402,797
End
of
period
..........................................................
$8,382,806,314
$9,353,566,542
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
48
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
Federal
Tax-Free
Income
Fund (Fund)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-end
management
investment
company.
The Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
Fund
offers five
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R6
and
Advisor
Class.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis,
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees. 
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Fund's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value. 
Equity
securities
and
exchange
traded
funds listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities. 
Debt
securities
generally
trade
in
the OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
b.
Securities
Purchased
on
a
When-Issued
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, it
may
sell
the
securities
before
the
settlement
date.
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
49
franklintempleton.com
Semiannual
Report
c.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank,
or
the
London
Interbank
Offered
Rate
(LIBOR), or
the
Secured
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
d.
Income
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
October
31,
2023, the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
The
Fund
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Fund.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
net
realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods. 
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
f.
Insurance
The
scheduled
payments
of
interest
and
principal
for
each
insured
municipal
security
in
the
Fund
are
insured
by
either
a
new
issue
insurance
policy
or
a
secondary
insurance
policy.
Depending
on
the
type
of
coverage,
premiums
for
insurance
are
either
added
to
the
cost
basis
of
the
security
or
paid
by
a
third
party.
Insurance
companies
typically
insure
municipal
bonds
that
tend
to
be
of
very
high
quality,
with
the
majority
of
underlying
municipal
bonds
rated
A
or
better.
However,
an
event
involving
an
insurer
could
have
an
adverse
effect
on
the
value
of
the
securities
insured
by
that
insurance
company.
There
can
be
no
assurance
the
insurer
will
be
able
to
fulfill
its
obligations
under
the
terms
of
the
policy.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
50
franklintempleton.com
Semiannual
Report
h.
Guarantees
and
Indemnifications
Under
the Fund's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the
Fund against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Fund
that
have
not
yet
occurred.
Currently,
the Fund
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
October
31,
2023,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Six
Months
Ended
October
31,
2023
Year
Ended
April
30,
2023
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
20,717,922
$217,320,469
80,664,051
$859,023,042
Shares
issued
in
reinvestment
of
distributions
..........
2,960,511
30,836,910
5,260,782
56,003,480
Shares
redeemed
...............................
(22,887,934)
(238,872,086)
(79,661,592)
(847,955,548)
Net
increase
(decrease)
..........................
790,499
$9,285,293
6,263,241
$67,070,974
Class
A1
Shares:
Shares
sold
...................................
3,469,419
$36,402,450
13,888,363
$147,952,934
Shares
issued
in
reinvestment
of
distributions
..........
7,558,648
78,796,223
15,422,978
164,226,746
Shares
redeemed
...............................
(37,623,818)
(393,664,793)
(113,136,532)
(1,204,212,103)
Net
increase
(decrease)
..........................
(26,595,751)
$(278,466,120)
(83,825,191)
$(892,032,423)
Class
C
Shares:
Shares
sold
...................................
645,577
$6,760,151
2,880,634
$30,648,561
Shares
issued
in
reinvestment
of
distributions
..........
309,880
3,230,141
702,806
7,478,018
Shares
redeemed
a
..............................
(4,650,722)
(48,682,550)
(11,633,559)
(123,798,439)
Net
increase
(decrease)
..........................
(3,695,265)
$(38,692,258)
(8,050,119)
$(85,671,860)
Class
R6
Shares:
Shares
sold
...................................
7,141,819
$75,575,836
43,587,106
$465,085,486
Shares
issued
in
reinvestment
of
distributions
..........
1,609,430
16,817,445
2,537,995
27,058,566
Shares
redeemed
...............................
(32,027,731)
(325,760,587)
(26,690,224)
(284,490,164)
Net
increase
(decrease)
..........................
(23,276,482)
$(233,367,306)
19,434,877
$207,653,888
Advisor
Class
Shares:
Shares
sold
...................................
40,260,311
$412,345,536
38,621,159
$412,560,439
Shares
issued
in
reinvestment
of
distributions
..........
1,641,965
17,083,861
3,165,413
33,745,340
Shares
redeemed
...............................
(16,015,366)
(167,480,288)
(74,724,075)
(796,312,822)
Net
increase
(decrease)
..........................
25,886,910
$261,949,109
(32,937,503)
$(350,007,043)
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
51
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,
2023,
the
annualized
gross
effective
investment
management
fee
rate
was 0.445%
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
plans,
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)
52
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,
calculated
monthly
and
paid
monthly, to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations. Effective
October
1,
2023,
the
fees
are
based
on
a
fixed
margin
earned
by
Investor
Services
and
are
allocated
to
the
Fund
based
upon
relative
assets
and
relative
transactions.
Prior
to
October
1,
2023,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6, reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
paid
to
third
parties
are
accrued
and
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
allocated
specifically
to
that
class
based
upon
its
relative
assets
and
relative
transactions.
For
the
period
ended
October
31,
2023,
the
Fund
paid
transfer
agent
fees
as
noted
in
the
Statement
of
Operations,
of
which
$990,730
was retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
October
31,
2023,
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
..............................
$31,318
CDSC
retained
..............................................................................
$73,869
    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
...................
$1,981,210
$—
$—
$—
$(158,530)
$1,822,680
83,000
$34,225
Total
Affiliated
Securities
...
$1,981,210
$—
$—
$—
$(158,530)
$1,822,680
$34,225
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
53
franklintempleton.com
Semiannual
Report
g.
Waiver
and
Expense
Reimbursements
Transfer
agent
fees
on
Class
R6
shares
have
been
capped
so
that
transfer
agent
fees
for
that
class
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
August
31,
2024.
h.
Interfund
Transactions
The
Fund
engaged
in
purchases
and
sales
of
investments
with
funds
or
other
accounts
that
have
common
investment
managers
(or
affiliated
investment
managers),
directors,
trustees
or
officers.
During
the
period
ended
October
31,
2023,
these
purchase
and
sale
transactions
aggregated
$196,197,907
and
$221,200,598,
respectively,
with
net
realized
losses
of
$1,237,530.
4.
Expense
Offset
Arrangement
The Fund has
previously
entered
into
an
arrangement
with
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
custodian
expenses.
During
the
period
ended
October
31,
2023,
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,
2023,
the
capital
loss
carryforwards
were
as
follows:
At
October
31,
2023,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
period
ended
October
31,
2023,
aggregated
$1,036,321,221 
and
$1,234,910,485,
respectively. 
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$303,550,254
Long
term
................................................................................
420,277,574
Total
capital
loss
carryforwards
...............................................................
$723,827,828
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
..........................................................................
$9,253,219,015
Unrealized
appreciation
........................................................................
$72,246,969
Unrealized
depreciation
........................................................................
(978,757,629)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(906,510,660)
3.
Transactions
with
Affiliates
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
54
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,
2023,
the
aggregate
value
of
these
securities
was $11,016,062
representing 0.1%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
8.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
2,
2024.
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,
2023,
the Fund
did
not
use
the
Global
Credit
Facility.
9.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
October
31,
2023,
in
valuing
the
Fund's assets carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Federal
Tax-Free
Income
Fund
Assets:
Investments
in
Securities:
Management
Investment
Companies
.........
$
1,822,680
$
—
$
—
$
1,822,680
Corporate
Bonds
........................
—
—
32,751,702
32,751,702
Senior
Floating
Rate
Interests
...............
—
—
24,778,218
24,778,218
Municipal
Bonds
:
—
Alabama
.............................
—
226,904,494
—
226,904,494
Alaska
...............................
—
33,184,350
—
33,184,350
Arizona
..............................
—
214,157,677
—
214,157,677
Arkansas
.............................
—
5,596,646
—
5,596,646
California
.............................
—
640,450,080
—
640,450,080
Colorado
.............................
—
235,897,706
—
235,897,706
Connecticut
...........................
—
17,912,131
—
17,912,131
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
55
franklintempleton.com
Semiannual
Report
A
reconciliation
of
assets
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
period.
Level
1
Level
2
Level
3
Total
Franklin
Federal
Tax-Free
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Municipal
Bonds:
Delaware
.............................
$
—
$
7,090,295
$
—
$
7,090,295
Florida
...............................
—
707,420,019
—
707,420,019
Georgia
..............................
—
358,411,153
—
358,411,153
Hawaii
...............................
—
101,874,592
—
101,874,592
Idaho
................................
—
14,502,478
—
14,502,478
Illinois
...............................
—
476,309,704
—
476,309,704
Indiana
..............................
—
211,638,209
—
211,638,209
Iowa
................................
—
65,736,188
—
65,736,188
Kansas
..............................
—
21,577,053
—
21,577,053
Kentucky
.............................
—
157,816,568
—
157,816,568
Louisiana
.............................
—
199,808,931
—
199,808,931
Maryland
.............................
—
124,000,034
—
124,000,034
Massachusetts
........................
—
154,157,825
—
154,157,825
Michigan
.............................
—
44,329,467
—
44,329,467
Mississippi
............................
—
70,678,786
—
70,678,786
Missouri
..............................
—
49,215,466
—
49,215,466
Montana
.............................
—
15,347,964
—
15,347,964
Nebraska
.............................
—
53,179,868
—
53,179,868
Nevada
..............................
—
21,094,067
—
21,094,067
New
Hampshire
........................
—
15,776,571
—
15,776,571
New
Jersey
...........................
—
253,143,098
—
253,143,098
New
Mexico
...........................
—
32,289,373
—
32,289,373
New
York
.............................
—
775,328,675
—
775,328,675
North
Carolina
.........................
—
41,518,799
—
41,518,799
North
Dakota
..........................
—
63,931,671
—
63,931,671
Ohio
................................
—
163,504,179
—
163,504,179
Oklahoma
............................
—
21,315,421
—
21,315,421
Oregon
..............................
—
93,737,755
—
93,737,755
Pennsylvania
..........................
—
113,682,139
—
113,682,139
Rhode
Island
..........................
—
8,451,894
—
8,451,894
South
Carolina
.........................
—
151,701,183
—
151,701,183
South
Dakota
..........................
—
46,249,485
—
46,249,485
Tennessee
............................
—
292,656,403
—
292,656,403
Texas
...............................
—
886,014,884
—
886,014,884
Utah
................................
—
90,925,875
—
90,925,875
Vermont
..............................
—
8,981,664
—
8,981,664
Virginia
..............................
—
38,300,172
—
38,300,172
Washington
...........................
—
199,939,179
—
199,939,179
West
Virginia
..........................
—
60,881,926
—
60,881,926
Wisconsin
............................
—
351,626,592
—
351,626,592
U.S.
Territories
..........................
District
of
Columbia
.....................
—
192,166,014
—
192,166,014
Puerto
Rico
...........................
—
78,507,773
22,309,564
100,817,337
Escrows
and
Litigation
Trusts
...............
—
—
1,378,715
1,378,715
Short
Term
Investments
...................
—
54,745,000
—
54,745,000
Total
Investments
in
Securities
...........
$1,822,680
$8,263,667,476
$81,218,199
$8,346,708,355
9.
Fair
Value
Measurements
(continued)
Franklin
Federal
Tax-Free
Income
Fund
Notes
to
Financial
Statements
(unaudited)
56
franklintempleton.com
Semiannual
Report
10.
New
Accounting
Pronouncements
In
March
2020,
the FASB
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021
and
December
2022,
the
FASB
issued
ASU
No.
2021-01
and
ASU
No.
2022-06,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
LIBOR and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
rate-related
contract
modifications
that
occur
during
the
period
March
12,
2020
through
December
31,
2024.
Management
has
reviewed
the
requirements
and
believes
the
adoption
of
these
ASUs
will
not
have
a
material
impact
on
the
financial
statements. 
11.
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
Cu
r
rency
USD
United
States
Dollar
Selected
Portfolio
AGMC
Assured
Guaranty
Municipal
Corp.
AMBAC
American
Municipal
Bond
Assurance
Corp.
BAM
Build
America
Mutual
Assurance
Co.
BHAC
Berkshire
Hathaway
Assurance
Corp.
COP
Certificate
of
Participation
ETF
Exchange-Traded
Fund
ETM
Escrowed
to
Maturity
FGIC
Financial
Guaranty
Insurance
Co.
FRN
Floating
Rate
Note
GNMA
Government
National
Mortgage
Association
GO
General
Obligation
LIBOR
London
Interbank
Offered
Rate
LOC
Letter
of
Credit
NATL
National
Reinsurance
Corp.
PSF
Permanent
School
Fund
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
SPA
Standby
Purchase
Agreement
Franklin
Federal
Tax-Free
Income
Fund
Shareholder
Information
57
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
2023,
the
Program
Administrator
provided
a
written
report
to
the
Board
addressing
the
adequacy
and
effectiveness
of
the
program
for
the
year
ended
December
31,
2022.
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
58
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
12/23
©
2023
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
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. Recovery of Erroneously Awarded Compensation.
 
(a) N/A


(b) N/A
 
 
Item 14. Exhibits.
 
(a)(1) Code of Ethics
 
 
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of 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 21, 2023
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
 
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
      Chief Executive Officer - Finance and Administration
Date  December 21, 2023
 
 
By S\CHRISTOPHER KINGS______________________
      Christopher Kings
      Chief Financial Officer, Chief Accounting Officer and Treasurer
Date  December 21, 2023