The Federal Reserve Announces a New Municipal Liquidity Facility to Provide Cash Flow Relief to State and Local Governments

By James Lane and Will Vietti

On April 9, 2020, the Federal Reserve announced a new program to bolster State and local government’s cash flow disruptions caused by the COVID-19 pandemic.  In its announcement, the Federal Reserve Board disclosed the creation of a new municipal liquidity facility loan program authorized under Section 13(3) of the Federal Reserve Act to provide lending support to the following “Eligible Issuers”:

  • States;
  • The District of Columbia;
  • Cities with a population exceeding one million residents; and
  • Counties with a population exceeding two million residents.

Read the full advisory HERE.