<PAGE> PAGE 1
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000 J000000 A
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001 C000000 4153122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
002 D010000 94404
002 D020000 1585
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008 A000001 FRANKLIN ADVISERS, INC.
008 B000001 A
008 C000001 801-26292
008 D010001 SAN MATEO
008 D020001 CA
008 D030001 94403
008 D040001 7777
011 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
011 B000001 8-5889
011 C010001 SAN MATEO
011 C020001 CA
011 C030001 94403
011 C040001 7777
012 A000001 FRANKLIN/TEMPLETON INVESTOR SERVICES, INC.
012 B000001 84-1036
012 C010001 SAN MATEO
012 C020001 CA
012 C030001 94403
<PAGE> PAGE 2
012 C040001 7777
013 A000001 COOPERS & LYBRAND L.L.P.
013 B010001 SAN FRANCISCO
013 B020001 CA
013 B030001 94105
013 B040001 2119
014 A000001 FRANKLIN/TEMPLETON DISTRIBUTORS, INC.
014 B000001 8-5889
015 A000001 BANK OF AMERICA NT & SA
015 B000001 C
015 C010001 SAN FRANCISCO
015 C020001 CA
015 C030001 94104
015 C040001 1502
015 E010001 X
015 A000002 THE BANK OF NEW YORK
015 B000002 C
015 C010002 NEW YORK
015 C020002 NY
015 C030002 10286
015 E010002 X
015 A000003 CITIBANK DELAWARE
015 B000003 C
015 C010003 NEW CASTLE
015 C020003 DE
015 C030003 19720
015 C040003 2409
015 E010003 X
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020 C000004 0
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022 A000001 PAINEWEBBER INC
022 B000001 13-2638166
022 C000001 275368
022 D000001 201034
022 A000002 SMITH BARNEY SHEARSON
022 B000002 13-1912900
022 C000002 217650
022 D000002 157525
<PAGE> PAGE 3
022 A000003 MERRILL LYNCH PIERCE FENNER
022 B000003 13-5674085
022 C000003 69304
022 D000003 35988
022 A000004 EVEREN SEC., INC
022 B000004 36-2693816
022 C000004 37020
022 D000004 60861
022 A000005 REINOSO & COMPANY, INC
022 B000005 13-3318919
022 C000005 41456
022 D000005 51300
022 A000006 A.F. BEST SECURITIES, INC.
022 B000006 59-2325576
022 C000006 37435
022 D000006 54327
022 A000007 LEHMAN BROTHERS, INC.
022 B000007 13-2518466
022 C000007 45605
022 D000007 43373
022 A000008 GOLDMAN SACHS & CO
022 B000008 13-5108880
022 C000008 66435
022 D000008 7671
022 A000009 CITICORP
022 B000009 13-3187336
022 C000009 30917
022 D000009 36520
022 A000010 BEAR, STEARNS & CO INC
022 B000010 13-3299429
022 C000010 14438
022 D000010 50169
023 C000000 1074480
023 D000000 969816
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025 D000001 0
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<PAGE> PAGE 4
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<PAGE> PAGE 5
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<PAGE> PAGE 6
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<PAGE> PAGE 7
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<PAGE> PAGE 8
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SIGNATURE DIOMEDES LOO-TAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FRANKLIN FEDERAL TAX-FREE INCOME FUND OCTOBER 31, 1996 SEMI-ANNUAL
REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 011
<NAME> FRANKLIN FEDERAL TAX-FREE INCOME FUND - CLASS I
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 6,661,730,529
<INVESTMENTS-AT-VALUE> 7,066,633,017
<RECEIVABLES> 150,205,551
<ASSETS-OTHER> 977,123
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,217,815,691
<PAYABLE-FOR-SECURITIES> 115,359,205
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,202,419
<TOTAL-LIABILITIES> 121,561,624
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,786,995,827
<SHARES-COMMON-STOCK> 588,334,219
<SHARES-COMMON-PRIOR> 592,693,405
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,478,463)
<ACCUMULATED-NET-GAINS> (94,165,785)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 404,902,488
<NET-ASSETS> 7,096,254,067
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 233,309,923
<OTHER-INCOME> 0
<EXPENSES-NET> (20,955,933)
<NET-INVESTMENT-INCOME> 212,353,990
<REALIZED-GAINS-CURRENT> (29,877,351)
<APPREC-INCREASE-CURRENT> 113,581,303
<NET-CHANGE-FROM-OPS> 296,057,942
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (212,675,089)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 28,629,620
<NUMBER-OF-SHARES-REDEEMED> (39,955,932)
<SHARES-REINVESTED> 6,967,126
<NET-CHANGE-IN-ASSETS> 49,543,838
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (64,288,434)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 15,977,887
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,955,933
<AVERAGE-NET-ASSETS> 7,046,771,608
<PER-SHARE-NAV-BEGIN> 11.830
<PER-SHARE-NII> 0.360
<PER-SHARE-GAIN-APPREC> 0.140
<PER-SHARE-DIVIDEND> (0.360)
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<AVG-DEBT-PER-SHARE> .000
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FRANKLIN FEDERAL TAX-FREE INCOME FUND OCTOBER 31, 1996 SEMI-ANNUAL
REPORT AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<SERIES>
<NUMBER> 012
<NAME> FRANKLIN FEDERAL TAX-FREE INCOME FUND - CLASS II
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1997
<PERIOD-END> OCT-31-1996
<INVESTMENTS-AT-COST> 6,661,730,529
<INVESTMENTS-AT-VALUE> 7,066,633,017
<RECEIVABLES> 150,205,551
<ASSETS-OTHER> 977,123
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 7,217,815,691
<PAYABLE-FOR-SECURITIES> 115,359,205
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 6,202,419
<TOTAL-LIABILITIES> 121,561,624
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 6,786,995,827
<SHARES-COMMON-STOCK> 4,462,414
<SHARES-COMMON-PRIOR> 2,884,610
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (1,478,463)
<ACCUMULATED-NET-GAINS> (94,165,785)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 404,902,488
<NET-ASSETS> 7,096,254,067
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 233,309,923
<OTHER-INCOME> 0
<EXPENSES-NET> (20,955,933)
<NET-INVESTMENT-INCOME> 212,353,990
<REALIZED-GAINS-CURRENT> (29,877,351)
<APPREC-INCREASE-CURRENT> 113,581,303
<NET-CHANGE-FROM-OPS> 296,057,942
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (1,157,364)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,696,681
<NUMBER-OF-SHARES-REDEEMED> (178,387)
<SHARES-REINVESTED> 59,510
<NET-CHANGE-IN-ASSETS> 49,543,838
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> (64,288,434)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 15,977,887
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 20,955,933
<AVERAGE-NET-ASSETS> 7,046,771,608
<PER-SHARE-NAV-BEGIN> 11.820
<PER-SHARE-NII> 0.330
<PER-SHARE-GAIN-APPREC> 0.145
<PER-SHARE-DIVIDEND> (0.325)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 11.970
<EXPENSE-RATIO> 1.170
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .000
</TABLE>
