Established in 1976, Government Money Fund and Tax-Free Income Fund continue to deliver on investors' needs to manage liquidity, taxes, and uncertainty amid heightened market volatility

BALTIMORE, June 8, 2026 /PRNewswire/ -- T. Rowe Price, a premier global investment management firm and a leader in retirement, is marking 2026 with the 50th anniversaries for two mutual funds: T. Rowe Price Government Money Fund (Ticker: PRRXX) and T. Rowe Price Tax-Free Income Fund (Ticker: PRTAX). The anniversaries come at a time of heightened market volatility, underscoring investors' needs for liquidity management, tax-efficiency, and portfolio resilience. These were the first T. Rowe Price mutual funds in each category, and they join six other firm funds with track records of 50 years or more. *

From Cash on the Sidelines to Cash as a Strategy

In the mid-1970s, savers faced a dilemma. Inflation was surging and interest rates were rising, but bank regulations limited their ability to earn competitive yields on deposits. Leveraging what was then a recent innovation, the investment industry attracted savers with money market mutual funds, which invested in short-term securities such as Treasury bills, commercial paper, and repurchase agreements.

This shift helped define cash as an asset class. As a response to growing client demand, T. Rowe Price launched the Government Money Fund in January 1976, then known as T. Rowe Price Prime Reserve Fund. The rise of money market mutual funds through the Seventies reshaped how investors used cash, as assets in the category grew from $2 billion to $74 billion during the last six years of the decade. By 1982, assets reached $200 billion; today, they stand at approximately $8 trillion¹, according to the Investment Company Institute.

"Cash plays a critical role in investors' portfolios, especially during periods of uncertainty," said Alex Obaza, money market fund portfolio manager at T. Rowe Price. "We have seen many interest rate and market cycles over the last 50 years. All the while, money market funds have been anchors for investors, helping them manage volatility and maintain liquidity while earning competitive levels of income. Our commitment to rigorous research and disciplined liquidity management have served investors well."

As of March 31, 2026, T. Rowe Price manages approximately $69 billion in liquidity-focused strategies², including approximately $34 billion in money market mutual funds.

Tax Reform Puts Tax-Exempt Bond Funds on Center Stage

Tax-free municipal bond funds were largely a creation of the Tax Reform Act of 1976, though the legacy of the federal tax exemption for interest on state and local bonds dates to the Revenue Act of 1913, which gave birth to the modern federal income tax. As Congress worked to expand the use of tax-exempt bonds as an economic development tool, T. Rowe Price launched the Tax-Free Income Fund in October 1976. Municipal bond funds gave investors a way to generate income that would not be subject to federal taxes while supporting essential infrastructure projects such as highways, bridges, water and sewage treatment plants, schools, electric and gas utilities, parks, mass transit, and more.

"Saving on taxes has long been a primary focus for many investors," said Jim Murphy, head of tax-exempt investing at T. Rowe Price. "Beyond that, tax-exempt bonds have been an effective diversifier as a complement in stock-heavy portfolios. As the municipal bond market has grown over the decades, it has become increasingly complex, making strong credit research and disciplined portfolio construction more important than ever in serving investors."

While markets, interest rate environments, and regulations have evolved significantly over the past 50 years, the role of cash and tax-free income remains constant. T. Rowe Price's money market and tax-free bond fund portfolio managers continue their research-driven approach to help investors effectively navigate change.

As of March 31, 2026, T. Rowe Price manages approximately $31 billion in tax-exempt portfolios, including approximately $21 billion in tax-exempt mutual funds.

*T. Rowe Price Mutual Funds With 50 or More Years of History

• T. Rowe Price Balanced Fund (1939)
• T. Rowe Price Growth Stock Fund (1950)
• T. Rowe Price Small-Cap Stock Fund (1956)
• T. Rowe Price New Horizons Fund (1960)
• T. Rowe Price New Era Fund (1969)
• T. Rowe Price New Income Fund (1973)
• T. Rowe Price Government Money Fund (1976)
• T. Rowe Price Tax-Free Income Fund (1976)

¹ $7.78 trillion for the week ended May 27, 2026.

² Comprises money market mutual funds, money market trusts, money market separately managed accounts, and short-term investment funds, including stable value portfolios.

ABOUT T. ROWE PRICE

T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm, entrusted with managing $1.83 trillion in client assets as of April 30, 2026, about two-thirds of which are retirement-related. Renowned for over 85 years of investment excellence, retirement leadership, and independent proprietary research, the firm leverages its longstanding expertise to ask better questions that can drive better investment decisions. Built on a culture of integrity and prioritizing client interests, T. Rowe Price empowers millions of investors worldwide to thrive amidst evolving markets. Visit troweprice.com/newsroom for news and public policy commentary.

IMPORTANT INFORMATION

T. Rowe Price Government Money Fund: You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. T. Rowe Price Associates, Inc., is not required to reimburse the fund for losses, and you should not expect that T. Rowe Price Associates, Inc., will provide financial support to the fund at any time, including during periods of market stress.

T. Rowe Price Tax-Free Income Fund: Interest rates: A rise in interest rates typically causes the price of a fixed rate debt instrument to fall and its yield to rise. Conversely, a decline in interest rates typically causes the price of a fixed rate debt instrument to rise and the yield to fall. Municipal securities: The fund may be highly impacted by events tied to the overall municipal securities markets, which can be very volatile and significantly affected by unfavorable legislative or political developments and adverse changes in the financial conditions of municipal securities issuers and the global, national, and/or local economies. Taxes: Some income may be subject to the federal alternative minimum tax. Capital gains, if any, are generally taxable.

Consider the investment objectives, risks, and charges and expenses carefully before investing. For a prospectus or, if available, a summary prospectus containing this and other information, visit troweprice.com/prospectus. Read it carefully.

All investments are subject to market risk, including the possible loss of principal. See each fund's prospectus for more detail on the fund's Principal Risks.

T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price funds

All T. Rowe Price data as of March 31, 2026, and data from the Investment Company Institute as of May 27, 2026.

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SOURCE T. Rowe Price Group