Title: Uplifting Our Local Communities Act
Policy area: Finance and Financial Sector

Summary:
Uplifting Our Local Communities Act
This bill allows the Federal Reserve Board in unusual and exigent circumstances to authorize Federal Reserve banks to buy and sell municipal bonds and other specified financial instruments issued by a state, the District of Columbia, a U.S. territory or possession, or a federally recognized Indian Tribe.
The Federal Reserve Board must revise the terms of operation of the Municipal Liquidity Facility through which the board purchases state and municipal debt. Specifically, the board must
The bill also establishes a long-term municipal borrowing facility to provide capital for the duration of the economic disruption caused by the COVID-19 (i.e., coronavirus disease 2019) pandemic. Additionally, the bill removes the prohibition on loan forgiveness for states and municipalities receiving specified COVID-19 aid.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7498 Introduced in House (IH)]

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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 Representatives 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.--
            (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 
possessions 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 System shall modify the Municipal 
                Liquidity Facility (established on April 9, 2020, 
                pursuant to section 13(3) of the Federal Reserve Act 
                (12 U.S.C. 343(3))) to--
                            (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 discount window 
                        primary credit interest rate most recently 
                        published on the Federal Reserve Statistical 
                        Release on selected interest rates (daily or 
                        weekly), commonly referred 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 
                                possessions of the United States;
                                    (II) a political subdivision of a 
                                State with a population of more than 
                                50,000 residents; and
                                    (III) an entity that is a 
                                combination 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 unexpended, 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 Liquidity Facility.
            (2) Goal.--The purpose of support for long-term municipal 
        borrowing markets shall be to ensure that each State, county, 
        district, political subdivision, or municipality in the United 
        States can access capital for long-term capital expenditures, 
        infrastructure projects, and other long-term general 
        obligations at low and stable prices for the entire duration of 
        any economic disruption caused by the COVID-19 pandemic.
    (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''.
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