The U.S. Treasury Department opposes extending the Federal Reserve’s $500 billion municipal lending program beyond the end of 2020 or easing the costly terms that have left it virtually unused.

The Trump administration’s views were laid out in response to questions from the Congressional Oversight Commission, which was created to monitor the central bank lending efforts ushered in by the March economic stimulus bill.

Extending the Fed’s ability to intervene in the $3.9 trillion municipal market improved the confidence of investors and caused prices to rebound from the fear-driven selloff that erupted in March and threatened to severely curtail governments’ ability to raise cash. It has since been almost completely unused, with loans extended only to two borrowers, Illinois and New York’s Metropolitan Transportation Authority, since governments can borrow more cheaply in the public markets.

The lending facility was the subject of a commission report last week that reflected a partisan split on whether it should be expanded. It’s currently set to lapse at the end of December, unless the Fed’s Board of Governors and the Treasury agree to extend it, according to the central bank.

The Treasury currently opposes keeping it in place beyond the end of the year, according to responses to questions included in an Oct. 16 letter to the commission from Frederick Vaughan, an official in the Treasury’s Office of Legislative Affairs. The Treasury is also currently against lowering the pricing of the loans or extending their terms beyond the three-year limit, according to the document.

Local government lobbying groups have urged the Fed and Treasury to loosen the terms of the program and extend it, given that the pandemic continues to hurt municipal budgets and the prospects for a large amount of aid from Washington appear dim for now.

The Treasury said the program succeeded in calming the market by providing a backstop for state and local governments.

“The facility’s low utilization reflects a recovered and functioning municipal securities market,” the document says.

While the program hasn’t seen major usage, it helped drive down borrowing costs for states and cities since March. Local government lobbying groups said in the letter last week that support for the market would likely still be needed in 2021 due to the pandemic’s fiscal toll.

The Treasury Department worked with the Fed on the design of the program and reviewed amendments to it.