House Republicans, Industry Officials Press Ex-Im Reauthorization Following McCarthy Rejection

The bank financed $37 billion in transactions for U.S. exporters in fiscal year 2013 involving more than 3,800 U.S. companies, said the letter. “During the upcoming reauthorization process, Congress will have an opportunity to review how the Bank has implemented the significant reforms contained in the last reauthorization two years ago and determine if further reforms may be necessary,” said the letter, led by Rep. Chris Collins, R-N.Y. “In addition, policymakers can ensure that Ex-Im Bank fills market gaps left by private sector lenders.”

Republicans House members have been the most vocal critics of the bank. House Financial Services Committee Chairman Jeb Hensarling, R-Texas, has repeatedly called on Congress to allow the credit agency to expire (see 14061804). The committee will hold a hearing to examine the bank's merits and potential reauthorization on June 25 (see 14062004). Ex-Im Bank President Fred Hochberg, along with other government and industry officials, will provide testimony at the hearing (here).

The bank has broad support among Democrats in both the House and Senate (see 14061616). House Financial Services Committee Ranking Member Maxine Waters, D-Calif., blasted McCarthy's rejection of the program in a June 24 statement. "Just days after being elected Majority Leader, it’s clear that Mr. McCarthy has already fallen under the control of the most extreme elements of the Republican party, who remain determined to eliminate the Export-Import Bank," said Waters in the statement. "His change in position is significant, given that he supported the renewal of Ex-Im’s charter in 2012, and as Whip, encouraged his colleagues to do the same. Despite Mr. McCarthy’s flip flop on the issue, the facts do not change. The Export-Import Bank still supports hundreds of thousands of jobs and levels the playing field so that all American businesses compete successfully in global markets."

The House is, however, likely to pass an Ex-Im reauthorization bill before the credit agency’s Sept. 30 expiration date if Republican leadership permits a vote on the legislation, said National Association of Manufacturers President and Jay Timmons and U.S. Chamber of Commerce President Tom Donohue during a June 23 conference call with reporters. Despite McCarthy’s rejection, the business community is still confident leadership will allow consideration of a bill, said the two executives on the conference call (see 14062301). If the 41 Republicans that sent the June 23 letter to Boehner and McCarthy join the House Democratic caucus to vote in favor of reauthorization, a bill could pass by a large margin with 240 votes. Neither chamber of Congress has introduced reauthorization legislation, and industry is not targeting any specific path through Congress to enact the legislation, said Donohue.

Industry opponents are also reluctant to prescribe specific changes to the legislation, said Donohue, despite the industry understanding that reforms are likely necessary (see 14062301). “It would be foolish to start going up there suggesting changes here. That may well appear in the discussions in the Congress to which we can react … I don’t want to go up there and start talking about ways of taking the system apart. What we want to do is keep the system together.”

Both of the executives dismissed suggestions of passing a continuing resolution to authorize the bank for the short-term. “The uncertainty of the future of the bank impacts deals as well,” said Timmons. “We lose deals because of the uncertainty so we want to see a certain future for bank and we want to get this thing done.” Short term extension will not allow the bank to continue to finance long-term projects, and would ultimately prevent U.S. exporters from closing deals with partners abroad, said Donohue.

President Barack Obama also strongly supports Ex-Im reauthorization, said White House spokesman Josh Earnest during a June 23 press conference. “The Ex-Im Bank helps American companies create and support jobs here at home at no cost to taxpayers and that helps us meet our export goals, which is why reauthorization of the Ex-Im Bank has historically enjoyed bipartisan support in the past,” said Earnest (here). “The benefits are clear -- these are important. Over the last five years, the bank has supported 1.2 million jobs in the United States across a range of business sectors, including more than 200,000 in fiscal year 2013 alone.” -- Brian Dabbs

Email ITTNews@warren-news.com for a copy of the letter.