I 

116TH CONGRESS 

2D SESSION H. R. 7717 

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

issuances, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 21, 2020 

Ms. TLAIB (for herself, Mr. NEGUSE, Mr. GARCI ́A of Illinois, Mr. GREEN of 

Texas, Mr. HASTINGS, Ms. KAPTUR, Mrs. CAROLYN B. MALONEY of New 

York, Mr. NADLER, Ms. NORTON, Ms. OCASIO-CORTEZ, Ms. PRESSLEY, 

Mr. SAN NICOLAS, Mr. SMITH of Washington, Mr. TAKANO, Ms. 

WATERS, and Mr. HUFFMAN) 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’’. 


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

2 TRIBAL, AND LOCAL GOVERNMENTS. 

3 (a) PURCHASE OF COVID–19 RELATED MUNICIPAL

4 ISSUANCES.— 

5 (1) AMENDMENT TO AUTHORITY TO BUY AND

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

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

8 adding at the end the following new paragraph: 

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

10 Under unusual and exigent circumstances, to buy any 

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

12 State, county, district, political subdivision, municipality, 

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

14 the District of Columbia, or any of the territories and pos15 sessions of the United States. In this paragraph, the term 

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

17 Columbia, each territory and possession of the United 

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

19 (2) FEDERAL RESERVE AUTHORIZATION TO

20 PURCHASE COVID–19 RELATED MUNICIPAL

21 ISSUANCES.— 

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

23 date of the enactment of this subsection, the 

24 Board of Governors of the Federal Reserve Sys25 tem shall modify the Municipal Liquidity Facil26 ity (established on April 9, 2020, pursuant to 


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

2 U.S.C. 343(3))) to— 

3 (i) ensure such facility is operational 

4 until December 31, 2021; 

5 (ii) allow for the purchase of bills, 

6 notes, bonds, and warrants with maximum 

7 maturity of 10 years from the date of such 

8 purchase; 

9 (iii) ensure that any purchases made 

10 are at an interest rate equal to the dis11 count window primary credit interest rate 

12 most recently published on the Federal Re13 serve Statistical Release on selected inter14 est rates (daily or weekly), commonly re15 ferred to as the ‘‘H.15 release’’ or the 

16 ‘‘Federal funds rate’’; 

17 (iv) ensure that an eligible issuer does 

18 not need to attest to an inability to secure 

19 credit elsewhere; and 

20 (v) include in the list of eligible 

21 issuers for such purchases— 

22 (I) any of the territories and pos23 sessions of the United States; 


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1 (II) a political subdivision of a 

2 State with a population of more than 

3 50,000 residents; and 

4 (III) an entity that is a combina5 tion of any of the several States, the 

6 District of Columbia, or any of the 

7 territories and possessions of the 

8 United States. 

9 (b) ESTABLISHMENT OF A LONG-TERM MUNICIPAL

10 BORROWING FACILITY.— 

11 (1) IN GENERAL.—Of amounts appropriated 

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

13 Law 116–136) that remain unobligated or unex14 pended, the Board of Governors and the Secretary 

15 of the Treasury shall provide support for long-term 

16 municipal borrowing markets in addition to support 

17 provided for such markets through the Municipal Li18 quidity Facility. 

19 (2) GOAL.—The purpose of support for long20 term municipal borrowing markets shall be to ensure 

21 that each State, county, district, political subdivi22 sion, or municipality in the United States can access 

23 capital for long-term capital expenditures, infra24 structure projects, and other long-term general obli25 gations at low and stable prices for the entire duraVerDate Sep 11 2014 01:09 Aug 09, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7717.IH H7717

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1 tion of any economic disruption caused by the 

2 COVID–19 pandemic. 

3 (c) APPLICABILITY OF THE LIMITATION ON LOAN

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

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

6 or municipality’’. 

Æ 


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