Federal Reserve Board expands scope and duration of the Municipal Liquidity Facility

The Municipal Liquidity Facility (MLF) will provide up to $500 billion in lending to states and municipalities to help manage cash flow stresses caused by the coronavirus pandemic. The expanded scope permits purchase of short-term notes issued by U.S. states and counties with a population of at least 500,000 residents, and U.S. cities with a population of at least 250,000 residents. The reduce population thresholds permit substantially more entities to borrow directly from the MLF. The expansion also permits certain multistate entities to participate. The termination date for the facility has been extended to December 31, 2020.