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. 
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 ‘‘Uplifting Our Local 
Communities Act’’. 
SEC. 2. EMERGENCY RELIEF FOR STATE, TERRITORIAL, 
TRIBAL, AND LOCAL GOVERNMENTS. 
(a) PURCHASE OF COVID–19 RELATED MUNICIPAL 
ISSUANCES.— 
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(1) AMENDMENT TO AUTHORITY TO BUY AND 
SELL
BONDS
AND
NOTES.—Section 14(b) of the 
Federal Reserve Act (12 U.S.C. 355) is amended by 
adding at the end the following new paragraph: 
‘‘(3) UNUSUAL
AND EXIGENT CIRCUMSTANCES.— 
Under unusual and exigent circumstances, to buy any 
bills, notes, revenue bonds, and warrants issued by any 
State, county, district, political subdivision, municipality, 
or entity that is a combination of any of the several States, 
the District of Columbia, or any of the territories and pos-
sessions of the United States. In this paragraph, 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.’’. 
(2) FEDERAL
RESERVE
AUTHORIZATION
TO 
PURCHASE
COVID–19
RELATED
MUNICIPAL 
ISSUANCES.— 
(A) AUTHORITY.—Within 7 days after the 
date of the enactment of this subsection, the 
Board of Governors of the Federal Reserve Sys-
tem shall modify the Municipal Liquidity Facil-
ity (established on April 9, 2020, pursuant to 
section 13(3) of the Federal Reserve Act (12 
U.S.C. 343(3))) to— 
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(i) ensure such facility is operational 
until December 31, 2021; 
(ii) allow for the purchase of bills, 
notes, bonds, and warrants with maximum 
maturity of 10 years from the date of such 
purchase; 
(iii) ensure that any purchases made 
are at an interest rate equal to the dis-
count window primary credit interest rate 
most recently published on the Federal Re-
serve Statistical Release on selected inter-
est rates (daily or weekly), commonly re-
ferred to as the ‘‘H.15 release’’ or the 
‘‘Federal funds rate’’; 
(iv) ensure that an eligible issuer does 
not need to attest to an inability to secure 
credit elsewhere; and 
(v) include in the list of eligible 
issuers for such purchases— 
(I) any of the territories and pos-
sessions of the United States; 
(II) a political subdivision of a 
State with a population of more than 
50,000 residents; and 
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(III) an entity that is a combina-
tion of any of the several States, the 
District of Columbia, or any of the 
territories and possessions of the 
United States. 
(b) ESTABLISHMENT OF A LONG-TERM MUNICIPAL 
BORROWING FACILITY.— 
(1) IN
GENERAL.—Of amounts appropriated 
under section 4027(a) of the CARES Act (Public 
Law 116–136) that remain unobligated or unex-
pended, the Board of Governors and the Secretary 
of the Treasury shall provide support for long-term 
municipal borrowing markets in addition to support 
provided for such markets through the Municipal Li-
quidity Facility. 
(2) GOAL.—The purpose of support for long- 
term municipal borrowing markets shall be to ensure 
that each State, county, district, political subdivi-
sion, or municipality in the United States can access 
capital for long-term capital expenditures, infra-
structure projects, and other long-term general obli-
gations at low and stable prices for the entire dura-
tion of any economic disruption caused by the 
COVID-19 pandemic. 
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(c) APPLICABILITY OF THE LIMITATION ON LOAN 
FORGIVENESS.—Section 4003(d)(3) of the CARES Act 
(Public Law 116–136) is amended by striking ‘‘, State, 
or municipality’’. 
Æ 
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