I 
116TH CONGRESS 
2D SESSION 
H. R. 6328 
To authorize Federal reserve banks to purchase COVID–19 related municipal 
issuances, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 23, 2020 
Ms. TLAIB (for herself, Ms. PRESSLEY, Ms. OCASIO-CORTEZ, Mr. SAN NICO-
LAS, Ms. NORTON, Ms. JAYAPAL, Mr. RASKIN, Mr. LEVIN of Michigan, 
Mr. GARCI´A of Illinois, Mrs. CAROLYN B. MALONEY of New York, Ms. 
OMAR, Mr. GREEN of Texas, Mr. CARSON of Indiana, Mrs. WATSON 
COLEMAN, Mr. POCAN, Ms. VELA´ZQUEZ, Mr. NEGUSE, Mr. SOTO, Mr. 
DANNY K. DAVIS of Illinois, Mr. ROUDA, Mr. NADLER, Ms. ADAMS, Ms. 
GARCIA of Texas, and Ms. HAALAND) 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Emergency Relief for 
State, Territorial and Local Governments Act of 2020’’. 
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SEC. 2. PURCHASE OF COVID–19 RELATED MUNICIPAL 
ISSUANCES. 
(a) AMENDMENT TO AUTHORITY TO BUY AND SELL 
BONDS AND NOTES.—Section 14(b) of the Federal Re-
serve Act (12 U.S.C. 355) is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘and during unusual and 
exigent circumstances,’’ before ‘‘bonds issued’’; 
and 
(B) by striking ‘‘of 1933’’ and all that fol-
lows through ‘‘assured revenues’’; and 
(2) by adding at the end the following: 
‘‘(3) STATE
DEFINED.—In this section, the 
term ‘State’ means each of the several States, the 
District of Columbia, each territory and possession 
of the United States, and each federally recognized 
Indian Tribe.’’. 
(b) FEDERAL RESERVE AUTHORIZATION TO PUR-
CHASE COVID–19 RELATED MUNICIPAL ISSUANCES.— 
(1) AUTHORITY.—Within seven days after the 
date of enactment of this subsection, the Federal 
Reserve Board of Governors shall establish a facility 
to buy and sell, at home or abroad, bills, notes, 
bonds, and warrants that are issued by any State or 
political subdivision thereof between March 1, 2020, 
and July 1, 2021, in order to fund a public health 
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or public service response to the COVID–19 pan-
demic. The Board of Governors of the Federal Re-
serve System may extend the authority under this 
subsection if the Board determines necessary. 
(2) REQUIRED
PURCHASES.—The Board of 
Governors of the Federal Reserve System shall es-
tablish policies and procedures to require the direct 
placement of bills, notes, bonds, and warrants de-
scribed in paragraph (1) with the Board at an inter-
est cost that does not exceed the Federal funds rate 
target for short-term interbank lending, within seven 
days after the date of enactment of this section. 
(3) REVIEW OF SPENDING.—During the 3-year 
period beginning on the date on which all purchases 
under this section are completed, relevant Federal 
authorities shall review such purchases to determine 
if funds were diverted from legitimate public health 
or public services responses to the COVID–19 pan-
demic to make such purchase. The relevant Federal 
authorities shall take appropriate action based on 
findings of such review. 
(4) DEFINITIONS.—In this subsection: 
(A) PUBLIC HEALTH OR PUBLIC SERVICE 
RESPONSE TO THE COVID–19 PANDEMIC.—The 
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term ‘‘public health or public service response 
to the COVID–19 pandemic’’ means— 
(i) the purchase, manufacture, or de-
livery of medical equipment, facilities, or 
services— 
(I) 
to 
treat 
or 
quarantine 
COVID–19 patients; 
(II) to protect first responders 
interacting with such patients; or 
(III) to test for COVID–19 infec-
tions and track social contacts of pa-
tients who have tested positive for the 
virus; 
(ii) the purchase, manufacture, or de-
livery of basic living supports for individ-
uals who are not COVID–19 patients dur-
ing periods of voluntary or mandatory so-
cial distancing or quarantine designed to 
prevent the spread of COVID–19; or 
(iii) the maintenance and delivery of 
basic public services to communities re-
sponding to the public health or economic 
effects of the COVID–19 pandemic. 
(B) STATE.—The term ‘‘State’’ means 
each of the several States, the District of Co-
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