The Municipal Liquidity Facility The Municipal Liquidity Facility (MLF) helped state and local governments better manage the extraordinary cash flow pressures associated with the pandemic when expenses, often for critical services, were temporarily higher than normal and tax revenues were delayed or temporarily lower than normal.
The MLF contributed to a strong and rapid recovery in municipal securities markets and thereby helped a wide variety of state and local governments and their instrumentalities issue debt with interest rates at or near historic lows.