Senators Move To Keep Export-Import Bank Alive

U.S. lawmakers submitted a bill to Congress Wednesday (July 24) in an effort to reauthorize the nation’s Export-Import Bank for the next decade.

Politico said Thursday (July 25) that a bipartisan bill is proposing a reauthorization of the trade finance provider before its charter expires at the end of September. The legislation, proposed by Kevin Cramer (ND) and Kyrsten Sinema (AZ), was submitted to the Senate following the decision by House Financial Services Chairwoman Maxine Waters (CA) to shelf previous legislation aimed to reauthorize the Ex-Im bank, developed alongside Patrick McHenry (NC).

According to Politico, the latest bill could have a greater chance at success than Waters’ and McHenry’s. The legislation proposes a $175 billion financial exposure cap for the bank over the next seven years and establishes a temporary board that would lead the Ex-Im Bank if the Senate is unable to confirm a board, which is required to approve of large trade finance transactions, reports explained.

The reauthorization bill is only the latest effort by lawmakers to keep the Ex-Im bank in operation. Congress recently removed a four-year block on the bank that prevented it from approving any trade finance transactions more than $10 million, according to reports. In May, Congress confirmed President Donald Trump’s nominations to fill vacancies on the Ex-Im’s board, which prevented it from approving large financing deals.

Following the proposal, the Aerospace Industries Association issued a press release urging Congress to approve of the bill.

“The [Export-Import] Bank enables American products …. to compete on a level playing field,” the AIA said. “More than 95 foreign export credit agencies around the world tirelessly support their respective country’s businesses, and without the U.S. Export-Import Bank, American exporters are competing with one hand tied behind their backs. Reauthorizing the bank will show that America stands behind its exporters.”