UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-09401

Name of Fund: The BlackRock Strategic Municipal Trust (BSD)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, The BlackRock Strategic Municipal Trust, 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2008

Date of reporting period: 01/01/2008 – 03/31/2008


Item 1 – Schedule of Investments


BlackRock Strategic Municipal Trust            
Schedule of Investments as of March 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
        Par      
State Municipal Bonds       (000)     Value
Alabama - 11.5% Alabama State Public School and College Authority, Capital Improvement Revenue Bonds, Series C, 5.75%, 7/01/18   $ 7,000   $ 7,299,880
  Birmingham, Alabama, Special Care Facilities Financing Authority, Revenue Refunding Bonds (Ascension Health Credit), Series C-2, 5%, 11/15/36     755     726,076
  Courtland, Alabama, IDB, Solid Waste Disposal Revenue Refunding Bonds (Champion International Corporation Project), AMT, Series A, 6.70%, 11/01/29     3,000     3,016,800
              11,042,756
Arizona - 4.2% Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5%, 12/01/32     1,455     1,260,408
  Salt Verde Financial Corporation, Arizona, Senior Gas Revenue Bonds, 5%, 12/01/37     2,390     2,034,201
  San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project), 6.25%, 5/01/15     210     198,920
  San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project), 7%, 5/01/20     210     194,042
  San Luis, Arizona, Facilities Development Corporation, Senior Lien Revenue Bonds (Regional Detention Center Project), 7.25%, 5/01/27     420     382,847
              4,070,418
California - 15.0% California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding Corporation), Sub-Series B, 5.875%, 6/01/46 (n)     585     34,445
  California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding Corporation), Sub-Series C, 6.30%, 6/01/55 (n)     3,095     72,794
  California County Tobacco Securitization Agency, Tobacco Revenue Bonds (Stanislaus County Tobacco Funding Corporation), Sub-Series D, 7.251%, 6/01/55 (n)     3,955     74,196
  California State, GO, 5%, 3/01/33 (a)     5,000     4,941,500
  California State, GO, Refunding, 5%, 6/01/32     1,950     1,917,630
  Golden State Tobacco Securitization Corporation of California, Tobacco Settlement Revenue Refunding Bonds, Senior Series A-1, 5.125%, 6/01/47     950     765,358
  University of California Revenue Bonds, Series B, 4.75%, 5/15/38     1,835     1,758,370
  West Valley Mission Community College District, California, GO (Election of 2004), Series A, 4.75%, 8/01/30 (b)     5,000     4,885,250
              14,449,543
Portfolio Abbreviations
To simplify the listings of Blackrock Strategic Municipal Trust's portfolio of holdings in the Schedule of Investments we have abbreviated the names of many of the securities according to the list below.
  AMT Alternative Minimum Tax (subject to) HFA Housing Finance Agency
  CABS Capital Appreciation Bonds IDA Industrial Development Authority
  EDA Economic Development Authority IDB Industrial Development Board
  EDR Economic Development Revenue S/F Single-Family
  GO General Obligation Bonds    

1

BlackRock Strategic Municipal Trust            
Schedule of Investments as of March 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
        Par      
State Municipal Bonds     (000)   Value
Colorado - 3.8% Colorado Springs, Colorado, Utilities System Improvement Revenue Bonds,            
  Subordinate Lien, Series C, 5%, 11/15/45 (b)   $ 445   $ 438,294
  Northwest Parkway Public Highway Authority, Colorado, Senior Revenue            
  Bonds, CABS, Series B, 6.30%, 6/15/11 (b)(c)(n)     10,000     2,854,800
  Park Creek Metropolitan District, Colorado, Senior Limited Tax Supported            
  Revenue Refunding Bonds, 5.50%, 12/01/37     440     402,838
              3,695,932
Connecticut - Mashantucket Western Pequot Tribe, Connecticut, Special Revenue Refunding            
7.2% Bonds, Sub-Series A, 5.50%, 9/01/28     1,500     1,348,830
  Mashantucket Western Pequot Tribe, Connecticut, Special Revenue Refunding            
  Bonds, Sub-Series B, 5.75%, 9/01/27 (d)     6,000     5,620,140
              6,968,970
Florida - 15.2% Arborwood Community Development District, Florida, Capital Improvement            
  Special Assessment Bonds (Master Infrastructure Projects), Series B, 5.10%,            
  5/01/14     1,635     1,471,124
  Halifax Hospital Medical Center, Florida, Hospital Revenue Refunding Bonds,            
  Series A, 5%, 6/01/38     1,050     899,147
  Hillsborough County, Florida, IDA, Exempt Facilities Revenue Bonds (National            
  Gypsum Company), AMT, Series A, 7.125%, 4/01/30     3,300     3,259,971
  Jacksonville, Florida, Health Facilities Authority, Hospital Revenue Bonds            
  (Baptist Medical Center Project), Series A, 5%, 8/15/37     715     652,516
  Miami Beach, Florida, Health Facilities Authority, Hospital Revenue Refunding            
  Bonds (Mount Sinai Medical Center of Florida), 6.75%, 11/15/21     2,045     2,079,642
  Orange County, Florida, Tourist Development, Tax Revenue Refunding Bonds,            
  4.75%, 10/01/32 (e)     5,265     4,911,297
  Sumter Landing Community Development District, Florida, Recreational            
  Revenue Bonds, Sub-Series B, 5.70%, 10/01/38     1,605     1,346,980
              14,620,677
Illinois - 9.4% Bolingbrook, Illinois, GO, Refunding, Series A, 4.75%, 1/01/38 (f)     1,000     949,570
  Centerpoint Intermodal Center Program Trust, Illinois, Tax Allocation Bonds,            
  Class A, 8%, 6/15/23 (d)     850     794,215
  Chicago, Illinois, Housing Authority, Capital Program Revenue Refunding            
  Bonds, 5%, 7/01/24 (b)     1,415     1,441,715
  Illinois Educational Facilities Authority Revenue Bonds (Northwestern            
  University), 5%, 12/01/33     5,000     4,956,800
  Illinois State Finance Authority Revenue Bonds (Friendship Village of            
  Schaumburg), Series A, 5.625%, 2/15/37     295     248,375
  Illinois State Finance Authority Revenue Bonds (Monarch Landing, Inc.            
  Project), Series A, 7%, 12/01/37     575     548,763
  Illinois State Financing Authority, Student Housing Revenue Bonds (MJH            
  Education Assistance IV LLC), Sub-Series B, 5.375%, 6/01/35 (o)     300     143,892
              9,083,330

2

BlackRock Strategic Municipal Trust            
Schedule of Investments as of March 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
        Par      
State Municipal Bonds     (000)   Value
Kentucky - 7.3% Kentucky Economic Development Finance Authority, Health System Revenue            
  Refunding Bonds (Norton Healthcare, Inc.), Series B, 6.20%, 10/01/24 (f)(n)   $ 17,780   $ 7,045,147
Louisiana - 1.4% Saint Tammany Parish, Louisiana, Financing Authority, S/F Mortgage Revenue            
  Bonds (Home Ownership Program), Series A, 5.25%, 12/01/39 (g)(h)     1,303     1,305,814
Maryland - 2.2% Maryland State Community Development Administration, Department of            
  Housing and Community Development, Residential Revenue Refunding Bonds,            
  AMT, Series A, 4.70%, 9/01/37     2,500     2,117,050
Massachusetts - Massachusetts State Water Resource Authority, General Revenue Refunding            
2.0% Bonds, Series A, 5%, 8/01/41     1,980     1,954,537
Michigan - 2.9% Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Henry            
  Ford Health System), Series A, 5.25%, 11/15/46     730     680,827
  Michigan State Hospital Finance Authority, Revenue Refunding Bonds (Mercy            
  Health Services), Series X, 5.75%, 8/15/09 (c)(f)     2,000     2,122,460
              2,803,287
Missouri - 6.9% Missouri Joint Municipal Electric Utility Commission, Power Project Revenue            
  Bonds (Plum Point Project), 4.60%, 1/01/36 (f)     2,385     2,153,202
  Missouri State Health and Educational Facilities Authority, Health Facilities            
  Revenue Refunding Bonds (Saint Anthony's Medical Center), 6.125%, 12/01/10 (c)     2,000     2,203,060
  Missouri State Housing Development Commission, S/F Mortgage Revenue            
  Refunding Bonds (Homeownership Loan Program), AMT, Series B-1, 5.05%,            
  3/01/38 (g)(h)     2,230     2,235,597
              6,591,859
Nebraska - 1.2% Omaha Public Power District, Nebraska, Electric System Revenue Bonds,            
  Series A, 4.75%, 2/01/44     1,205     1,132,073
Nevada - 0.9% Clark County, Nevada, EDR, Refunding (Alexander Dawson School of Nevada            
  Project), 5%, 5/15/29     905     864,049
New Jersey - 3.1% Middlesex County, New Jersey, Improvement Authority, Subordinate Revenue            
  Bonds (Heldrich Center Hotel/Conference Project), Series B, 6.25%, 1/01/37     645     547,302
  New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%, 6/15/24     2,480     2,382,139
              2,929,441
New York - 6.8% Albany, New York, IDA, Civic Facility Revenue Bonds (New Covenant Charter            
  School Project), Series A, 7%, 5/01/35 (o)     315     244,248
  New York City, New York, City IDA, Special Facility Revenue Bonds            
  (Continental Airlines Inc. Project), AMT, 7.75%, 8/01/31     4,395     4,520,038
  New York Liberty Development Corporation Revenue Bonds (Goldman Sachs            
  Headquarters), 5.25%, 10/01/35     1,775     1,790,514
              6,554,800
Ohio - 6.1% Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco Settlement            
  Asset-Backed Bonds, Series A-2, 6.50%, 6/01/47     1,105     1,067,419
  Ohio State Air Quality Development Authority, Revenue Refunding Bonds            
  (Dayton Power and Light Company Project), Series B, 4.80%, 1/01/34 (i)     5,265     4,841,641
              5,909,060

3

BlackRock Strategic Municipal Trust          
Schedule of Investments as of March 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
        Par      
State Municipal Bonds     (000)   Value
Oklahoma - 2.2% Oklahoma State Development Finance Authority, Revenue Refunding Bonds            
  (Saint John Health System), 5%, 2/15/42   $ 905   $ 844,953
  Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding Bonds, Series A,            
  7.75%, 6/01/35     1,225     1,259,998
              2,104,951
Pennsylvania - Pennsylvania Economic Development Financing Authority, Exempt Facilities            
7.2% Revenue Bonds (Amtrak Project), AMT, Series A, 6.50%, 11/01/16     1,000     1,049,150
  Pennsylvania Economic Development Financing Authority, Exempt Facilities            
  Revenue Bonds (Amtrak Project), AMT, Series A, 6.125%, 11/01/21     700     714,483
  Pennsylvania Economic Development Financing Authority, Exempt Facilities            
  Revenue Bonds (Amtrak Project), AMT, Series A, 6.25%, 11/01/31     1,000     1,001,000
  Pennsylvania Economic Development Financing Authority, Exempt Facilities            
  Revenue Bonds (Reliant Energy), AMT, Series A, 6.75%, 12/01/36     2,745     2,743,957
  Pennsylvania Economic Development Financing Authority, Resource Recovery            
  Revenue Refunding Bonds (Colver Project), Series G, 5.125%, 12/01/15     1,000     948,540
  Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds, AMT, Series 97A,            
  4.60%, 10/01/27     420     370,091
  Washington County, Pennsylvania, Capital Funding Authority Revenue Bonds            
  (Capital Projects and Equipment Program), 6.15%, 12/01/29 (j)     105     104,865
              6,932,086
South Carolina - South Carolina Jobs EDA, Hospital Facilities Revenue Refunding Bonds            
3.1% (Palmetto Health Alliance), Series C, 7%, 8/01/13 (c)     2,500     2,978,805
South Dakota - South Dakota State Health and Educational Facilities Authority Revenue Bonds            
0.9% (Sanford Health), 5%, 11/01/40     910     831,995
Tennessee - 3.4% Memphis-Shelby County, Tennessee, Airport Authority, Airport Revenue            
  Bonds, AMT, Series D, 6%, 3/01/24 (j)     2,000     2,030,260
  Shelby County, Tennessee, Health, Educational and Housing Facility Board,            
  Hospital Revenue Refunding Bonds (Saint Jude Children's Research Hospital),            
  5%, 7/01/31     1,270     1,249,324
              3,279,584
Texas - 14.8% Harris County-Houston Sports Authority, Texas, Revenue Refunding Bonds,            
  Senior Lien, Series A, 6.146%, 11/15/38 (f)(n)     4,750     685,995
  La Joya, Texas, Independent School District, GO, 5%, 2/15/34     4,060     4,030,606
  Lower Colorado River Authority, Texas, Revenue Refunding Bonds, Series A,            
  5.50%, 5/15/21 (j)     1,500     1,541,565
  Montgomery County, Texas, Municipal Utility District Number 46, Waterworks            
  and Sewer System, GO, 4.75%, 3/01/30 (f)     295     281,831
  Pearland, Texas, GO, Refunding, 4.75%, 3/01/29 (i)     1,000     945,430

4

BlackRock Strategic Municipal Trust              
Schedule of Investments as of March 31, 2008 (Unaudited) (Percentages shown are based on Net Assets)
        Par        
State Municipal Bonds     (000)   Value
  SA Energy Acquisition Public Facilities Corporation, Texas, Gas Supply            
  Revenue Bonds, 5.50%, 8/01/24   $ 1,095   $ 1,047,170  
  Texas State Turnpike Authority, Central Texas Turnpike System Revenue            
  Bonds, 6.06%, 8/15/31 (j)(n)     15,000     3,755,550  
  Texas State Turnpike Authority, Central Texas Turnpike System Revenue            
  Bonds, First Tier, Series A, 5%, 8/15/42 (j)     1,450     1,408,893  
  Texas State, Water Financial Assistance, GO, Refunding, 5.75%, 8/01/22   500     522,230  
              14,219,270  
Virginia - 1.2% Henrico County, Virginia, EDA, Residential Care Facility, Mortgage Revenue            
  Refunding Bonds (Westminster-Canterbury Of Winchester, Inc.), 5%, 10/01/27   1,000     908,390  
  Tobacco Settlement Financing Corporation of Virginia, Revenue Refunding            
  Bonds, Senior Series B-1, 5%, 6/01/47     270     213,068  
              1,121,458  
Washington - 1.5% King County, Washington, Sewer Revenue Refunding Bonds, 5%, 1/01/36 (b)   620     617,185  
  Washington State Health Care Facilities Authority, Revenue Refunding Bonds            
  (Providence Health System), Series A, 4.625%, 10/01/34 (i)   915     831,232  
              1,448,417  
Wisconsin - 6.0% Wisconsin State Health and Educational Facilities Authority Revenue Bonds            
  (Ascension Health), Series A, 5%, 11/15/31     4,665     4,538,672  
  Wisconsin State Health and Educational Facilities Authority, Revenue            
  Refunding Bonds (Franciscan Sisters Healthcare), 5%, 9/01/26   1,375     1,215,913  
              5,754,585  
Puerto Rico - 1.4% Puerto Rico Commonwealth Highway and Transportation Authority,            
  Transportation Revenue Refunding Bonds, Series N, 5.25%, 7/01/34 (k)   1,355     1,388,076  
  Total Municipal Bonds (Cost - $147,103,173) - 148.8%           143,197,970  
  Corporate Bonds              
Multi-State - 6.6% Charter Mac Equity Issuer Trust, 7.60%, 11/30/50 (d)     2,000     2,190,720  
  MuniMae TE Bond Subsidiary LLC, 6.875%, 6/30/49 (d)   4,000     4,140,520  
  Total Corporate Bonds (Cost - $5,876,890) - 6.6%           6,331,240  
  Short-Term Securities     Shares        
  Merrill Lynch Institutional Tax-Exempt Fund, 2.16% (l)(m)   6,700,000     6,700,000  
  Total Short-Term Securities (Cost - $6,700,000) - 6.9%           6,700,000  
  Total Investments (Cost - $159,680,063*) - 162.3%           156,229,210  
  Other Assets Less Liabilities - 2.1%           2,038,114  
  Preferred Shares, at Redemption Value - (64.4%)           (62,027,424 )
  Net Assets Applicable to Common Shares - 100.0%         $ 96,239,900  

5

BlackRock Strategic Municipal Trust
Schedule of Investments as of March 31, 2008 (Unaudited)
*
The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:
Aggregate cost $ 159,680,063  
Gross unrealized appreciation $ 3,140,383  
Gross unrealized depreciation   (6,591,236 )
Net unrealized depreciation $ (3,450,853 )
(a)

CIFG Insured.
(b)

FSA Insured.
(c)

Prerefunded.
(d)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. Unless otherwise indicated, these securities are not considered to be illiquid.
(e)

XL Capital Insured.
(f)

MBIA Insured.
(g)

FHLMC Collateralized.
(h)

FNMA/GNMA Collateralized.
(i)

FGIC Insured.
(j)

AMBAC Insured.
(k)

Assured Guaranty Insured.
(l)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
        Dividend
Affiliate Net Activity   Income
Merrill Lynch Institutional Tax-Exempt Fund $ 6,700,000   $ 12,329
(m)

Represents the current yield as of March 31, 2008.

(n)

Represents a zero coupon bond; the interest rate is the effective yield at time of purchase.
(o) Security is illiquid.
• Forward interest rate swaps outstanding as of March 31, 2008 were as follows:
    Notional        
    Amount     Unrealized  
    (000)     Depreciation  
Pay a fixed rate of 4.3385% and receive a floating            
based on 3-month USD LIBOR            
Broker, JPMorgan Chase            
Expires May 2018 $ 8,220   $ (178,070 )
Pay a fixed rate of 3.585% and receive a floating rate            
based on 1-week (SIFMA) Municipal Swap Index rate.            
Broker, JPMorgan Chase            
Expires April 2023 $ 10,750     (118,540 )
Pay a fixed rate of 3.689% and receive a floating rate            
based on 1-week (SIFMA) Municipal Swap Index rate.            
Broker, Citibank NA            
Expires June 2028 $ 2,670     (13,430 )
Total       $ (310,040 )

6

BlackRock Strategic Municipal Trust

• Effective January 1, 2008, the BlackRock Strategic Municipal Trust (the “Trust”) adopted FASB Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

• Level 1 – price quotations in active markets/exchanges for identical securities
• Level 2 – other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market–corroborated inputs)
• Level 3 – unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following table summarizes the inputs used as of March 31, 2008 in determining the fair valuation of the Trust’s investments:

 Valuation   Investments in   Other Financial  
 Inputs   Securities   Instruments*  
 Level 1     0     0  
 Level 2   $ 156,229,210 $ (310,040 )
 Level 3     0     0  
 Total   $ 156,229,210   $ (310,040 )
*Other financial instruments are derivative instruments such as swaps.  


Item 2 – Controls and Procedures

2(a) –

The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
   
2(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a- 3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

The BlackRock Strategic Municipal Trust
 
By:
/s/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer of
  The BlackRock Strategic Municipal Trust
 
Date: May 22, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:
/s/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer (principal executive officer) of
  The BlackRock Strategic Municipal Trust
 
Date: May 22, 2008
 
By:
/s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  The BlackRock Strategic Municipal Trust
 
Date: May 22, 2008