Log in now

State and Local Government Series Securities Overview

The Department of the Treasury (Treasury) is issuing a notice of proposed rulemaking (NPRM) to amend the regulations governing State and Local Government Series (SLGS) securities. Treasury is proposing to amend the SLGS regulations to address misuse of the SLGS program, most notably the use of program flexibilities by tax-advantaged entities, usually a state or local government, investing in SLGS securities to create impermissible cost-free options.

Comments on this NPRM must be received on or before November 29, 2022. To see more details and where to send comments, visit

The State and Local Government Series (SLGS) securities program was established in 1972 as the result of federal legislation enacted in 1969 which restricted state and local governments from earning arbitrage profits by investing bond proceeds in higher yielding investments. In 1992, SLGS were centralized within the Special Investments Branch (SIB) of the Bureau of the Public Debt (now the Bureau of the Fiscal Service) in Parkersburg, WV. 

  • SLGS securities are offered for sale to issuers of state and local government tax-exempt debt to assist with compliance of yield restriction or arbitrage rebate provisions of the Internal Revenue Code.
  • Subscribers may invest in time deposit or demand deposit types of securities.
  • All SLGS securities are issued in book-entry form and are non-marketable.

Time Deposit SLGS

  • The securities are issued as Certificates of Indebtedness, Notes, or Bonds.
  • Maturity length can be 15 days up to 40 years.
  • The interest rate earned on time deposit securities is one basis point below the current estimated Treasury borrowing rate for a security of comparable maturity. See Daily Rate Table.

Demand Deposit SLGS

  • The SLGS demand deposit security is a one-day certificate of indebtedness.
  • The principal and daily accrued interest are automatically rolled over each day until redemption is requested.
  • The interest rate on SLGS demand deposit securities is based on an adjustment of the average yield in the most recent auction of the 13-week Treasury bills.

Purchasing SLGS

Subscribers purchase SLGS securities by using SLGSafe, our secure Internet application for managing your SLGS portfolio.

Funds for purchasing the security are sent through the Fedwire Funds Transfer system (Fedwire) on the issue date. Scheduled interest and redemption payments are paid through Automated Clearing House (ACH). Fedwire pays some of the proceeds of redemptions requested before maturity.