I 

116TH CONGRESS 

2D SESSION H. R. 7498 

To authorize Federal reserve banks to purchase COVID–19 related municipal 

issuances, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 6, 2020 

Ms. TLAIB introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To authorize Federal reserve banks to purchase COVID– 

19 related municipal issuances, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Uplifting Our Local 

5 Communities Act’’. 

6 SEC. 2. EMERGENCY RELIEF FOR STATE, TERRITORIAL, 

7 TRIBAL, AND LOCAL GOVERNMENTS. 

8 (a) PURCHASE OF COVID–19 RELATED MUNICIPAL

9 ISSUANCES.— 


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1 (1) AMENDMENT TO AUTHORITY TO BUY AND

2 SELL BONDS AND NOTES.—Section 14(b) of the 

3 Federal Reserve Act (12 U.S.C. 355) is amended by 

4 adding at the end the following new paragraph: 

5 ‘‘(3) UNUSUAL AND EXIGENT CIRCUMSTANCES.— 

6 Under unusual and exigent circumstances, to buy any 

7 bills, notes, revenue bonds, and warrants issued by any 

8 State, county, district, political subdivision, municipality, 

9 or entity that is a combination of any of the several States, 

10 the District of Columbia, or any of the territories and pos11 sessions of the United States. In this paragraph, the term 

12 ‘State’ means each of the several States, the District of 

13 Columbia, each territory and possession of the United 

14 States, and each federally recognized Indian Tribe.’’. 

15 (2) FEDERAL RESERVE AUTHORIZATION TO

16 PURCHASE COVID–19 RELATED MUNICIPAL

17 ISSUANCES.— 

18 (A) AUTHORITY.—Within 7 days after the 

19 date of the enactment of this subsection, the 

20 Board of Governors of the Federal Reserve Sys21 tem shall modify the Municipal Liquidity Facil22 ity (established on April 9, 2020, pursuant to 

23 section 13(3) of the Federal Reserve Act (12 

24 U.S.C. 343(3))) to— 


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1 (i) ensure such facility is operational 

2 until December 31, 2021; 

3 (ii) allow for the purchase of bills, 

4 notes, bonds, and warrants with maximum 

5 maturity of 10 years from the date of such 

6 purchase; 

7 (iii) ensure that any purchases made 

8 are at an interest rate equal to the dis9 count window primary credit interest rate 

10 most recently published on the Federal Re11 serve Statistical Release on selected inter12 est rates (daily or weekly), commonly re13 ferred to as the ‘‘H.15 release’’ or the 

14 ‘‘Federal funds rate’’; 

15 (iv) ensure that an eligible issuer does 

16 not need to attest to an inability to secure 

17 credit elsewhere; and 

18 (v) include in the list of eligible 

19 issuers for such purchases— 

20 (I) any of the territories and pos21 sessions of the United States; 

22 (II) a political subdivision of a 

23 State with a population of more than 

24 50,000 residents; and 


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1 (III) an entity that is a combina2 tion of any of the several States, the 

3 District of Columbia, or any of the 

4 territories and possessions of the 

5 United States. 

6 (b) ESTABLISHMENT OF A LONG-TERM MUNICIPAL

7 BORROWING FACILITY.— 

8 (1) IN GENERAL.—Of amounts appropriated 

9 under section 4027(a) of the CARES Act (Public 

10 Law 116–136) that remain unobligated or unex11 pended, the Board of Governors and the Secretary 

12 of the Treasury shall provide support for long-term 

13 municipal borrowing markets in addition to support 

14 provided for such markets through the Municipal Li15 quidity Facility. 

16 (2) GOAL.—The purpose of support for long17 term municipal borrowing markets shall be to ensure 

18 that each State, county, district, political subdivi19 sion, or municipality in the United States can access 

20 capital for long-term capital expenditures, infra21 structure projects, and other long-term general obli22 gations at low and stable prices for the entire dura23 tion of any economic disruption caused by the 

24 COVID-19 pandemic. 


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1 (c) APPLICABILITY OF THE LIMITATION ON LOAN

2 FORGIVENESS.—Section 4003(d)(3) of the CARES Act 

3 (Public Law 116–136) is amended by striking ‘‘, State, 

4 or municipality’’. 

Æ 


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