Ex-Im Bank Reauthorization Stalled, Even as House Prepares to Adjourn
Though the U.S. Senate voted 64-29 this week to renew the charter of the Export-Import Bank of the United States (Ex-Im), the House may adjourn for its summer break without taking action on the issue.
Congress let the Ex-Im bank's charter lapse for the first time in its 81 years of continuous operation on June 30.
Stripped of its authority after its charter expired, the independent federal agency that fills gaps in private export finance has since been unable to process applications or authorize new transactions. It continues oversight of preexisting transactions, loans, guarantees, and insurance policies, however.
Legislation proposed by Sens. Mark Kirk (R-Ill.) and Heidi Heitkamp (D-N.D.), as an amendment to the multi-year Highway Trust Fund bill, would renew the bank's charter through fiscal year 2019. The Senate passed it on July 27 in a bipartisan vote. A clear majority in the House also reportedly supports keeping the bank operational, but putting the measure up for vote is up to House leaders-who oppose the bank's resurrection.
Led by Jeb Hensarling (R-Texas), chair of the House Financial Services Committee, critics say the bank goes against a competitive, free-market economy. The lapse will help in "arresting the rise of the progressive welfare state and the cronyism connected to it," Hensarling has said.
The White House had pushed hard for the bank's reauthorization. It said in a June 30 fact sheet that the bank last year supported $27.5 billion in exports through more than 3,700 transactions-including $462 million to back U.S. exports related to power generation projects-and generated nearly $7 billion for taxpayers over the past two decades.
"When Ex-Im lapses, China and other foreign rivals will pick up the slack, putting American businesses and American workers at a disadvantage," it said.
The bank's charter renewal is also strongly backed by the nuclear sector, including industry group Nuclear Energy Institute, as well as the National Association of Manufacturers, the U.S. Chamber of Commerce, the National Small Business Association, the Business Roundtable, and many others representing specific industries.
-Sonal Patel, associate editor(@POWERmagazine, @sonalcpatel)
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