The Fed’s Municipal Liquidity Facility, explained
Abstract: The Fed is lending up to $500 billion to eligible cities, counties, and states. Eligible borrowers include all 50 states and Washington DC, counties with at least 500,000 residents, and cities with at least 250,000 residents. Nearly 270 cities, counties, and states meet these thresholds. To ensure smaller places may also be supported, potential borrowers also include cities or counties identified by governors in states where less than two cities and counties meet these population thresholds. Additionally, governors may identify two entities in their states that draw revenue through government activities—for example, public transit, toll facilities, and airports—as eligible to borrow from the Fed.
Description: Full Text
Provider: Federal Reserve Bank of Cleveland
Publication Date: 2020-07-07