The US House of Representatives has passed a Democrat-supported bill reauthorising the Export-Import Bank of the United States, though the measure seems to have little chance of passing the US Senate.
The US House of Representatives has passed a Democrat-supported bill reauthorising the Export-Import Bank of the United States, though the measure seems to have little chance of passing the US Senate.
The bill, which would fund the bank for 10 years, has already been panned by a top Senate Republican and the White House budget office.
The Export-Import Bank provides financing to overseas buyers of US manufacturing goods. Boeing is among the top beneficiaries.
The bill passed by House Democrats would authorise the bank’s loan-making ability through the end of 2029.
It would green-light the bank to back loans worth up to $145 billion in fiscal 2020, with the cap increasing to $175 billion annually from fiscal years 2026 to 2029.
The measure would also change the bank’s name from the Export-Import Bank of the United States to the United States Export Finance Agency.
Industry group Aerospace Industries Association hailed the measure as sending a “clear message that America is serious about taking the necessary steps to ensure our exports can compete on a level playing field against foreign competitors”.
The will would “provide long-term certainty for the aerospace sector and support industry jobs”, it adds.
But Republican Senator Mitch McConnell has already vowed not to pass the bill, according to reports. McConnell’s office could not immediately be reached for comment.
The White House Office of Management and Budget issued a statement on 14 November saying it would advise President Donald Trump to veto the bill if it ever landed on his desk.
“This bill creates significant obstacles to achieving the mission of the Export-Import Bank and includes provisions that would create excessive costs and burdensome reporting structures, which could delay project approval and implementation,” says the budget office. “The Export-Import Bank must remain flexible so it can counter alternative sources of project financing from international competitors, such as China, that make use of a diverse array of credit agencies.”
