On May 11, 2020, the Fed announced the pricing methodology for the purchase of short term notes under the Municipal Liquidity Facility. The notes will bear a fixed interest rate that is based on the overnight indexed swap rate for a comparable maturity plus a fixed spread that corresponds with the rating of the notes and their tax status. The Fed also made an allowance for issuers that had been rated by only one rating agency (previously an issuer needed two ratings), so long as other conditions are met. The revised term sheet and frequently asked questions can be found here: May 11, 2020.

Click here to read a day-by-day breakdown of certain Federal Reserve and Treasury Department actions taken since the outbreak of the COVID-19 pandemic.