WASHINGTON - Municipal issuers are pushing to be included in the Federal Reserve's program to buy commercial paper, which the Fed has hinted will not include municipalities under its current terms. The resolution may ultimately boil down to the definition of a municipality, market participants contend.

Since the Fed announced its Commercial Paper Funding Facility program on Monday, municipal issuers have been pushing to be included in it. They argue that the Fed's desire to provide liquidity to the short-term market through commercial paper should extend to their tax-exempt commercial paper and even to municipal tax and revenue anticipation notes. They also claim it may be possible for municipalities to be legally considered corporations.

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