WASHINGTON – Before leaving town for the July 4 congressional recess late Thursday, Democrats and Republicans found one last opportunity to fight – a tug-of-war over renewing the charter of the U.S. Export-Import Bank, which lends money to foreign firms to buy American goods.
“Today, Speaker (John) Boehner and House Republicans have chosen once again to govern by crisis, leaving town without taking a single step to prevent the Export-Import Bank from shutting down,” Rep. Maxine Waters, D-Calif., said Thursday. “For more than 80 years, the Ex-Im Bank has worked to level the playing field for Americans looking to grow their businesses and sell their products in foreign markets. It has been renewed 16 times without controversy.”
The bank’s charter was set to expire last September but some House Republicans extended it nine more months, until June 30.
On Wednesday, Democrats took to the House floor to try to win approval to extend the charter seven more years but their bill was defeated on a party line vote of 243,181.
The Export-Import Bank of the United States is an official export credit agency that has been financing the exports of U.S. goods and services for more than 80 years. It provides loan, guarantee and insurance programs for foreign buyers, usually with a lower default rate than is commercially available. According to a bank report, it has supported 1.3 million American jobs since 2009.
With nearly 60 other export credit agencies around the world, including ones supported by China and Russia, trying to win jobs for their own countries, supporters said the Export-Import Bank helps level the global market for American businesses.
Steven Wilburn, CEO of FirmGreen Inc. in Newport Beach, Calif., said his renewal energy company lost a $57 million contract last year because of uncertainty over the future of the Export-Import Bank. While his company was the preferred vendor, a Korean company – and its export credit authority – was able to win a contract instead of his business by persuading a prospective Philippine client that there was a high degree of uncertainty around reauthorization of Ex-Im.
Opponents, however, say the bank distorts the market and wastes tax dollars. The Club for Growth, a conservative interest group, released TV ads on June 12 urging an end to the Export-Import Bank.
“ The list of conservatives who want to end the Export-Import Bank is growing,” said Club for Growth President David McIntosh. “Republican presidential candidates, congressional leaders, and committee chairmen in the House and Senate are lining up against Ex-Im.”
Even the though bank’s charter ends next week, supporters said they will continue to try to revive the charter through other vehicles. Senate Majority Leader Mitch McConnell said Tuesday that attaching it to the highway bill would be the “obvious place” for a vote to keep the bank alive.
And though no new loans will be issued after June 30, the agency will continue to function until September, according to the bank’s spokeswoman.
“We have the votes, and when we return in July, we will continue pressing Republican leadership to take action to ensure the Bank’s charter is extended for the long-term.,” Waters said.