In the midst of impeachment hearings, the House of Representatives also conducted legislative business this week. The main legislation under consideration was a bill to reauthorize a controversial federal agency that provides loan guarantees for U.S. businesses. Supporters say it is essential to supporting American exports, while critics argue that it’s nothing more than corporate welfare.
The House passed H.R. 4863 by a vote of 235-184. Here is how VoteSpotter described the bill:
To renew the authorization of the Export-Import Bank to operate through 2029 and expand its lending authority from $135 billion to $175 billion. The Export-Import Bank is a federal agency that gives loans and loan guarantees to companies purchasing U.S. exports. These loans are backed by the federal government, meaning if borrowers default the government pays them.
The reauthorization and staffing of the Export-Import Bank’s board has been a long-running controversy in Congress. While the agency has bipartisan support, there is also strong opposition to it on the left and the right who see it as a taxpayer giveaway to large corporations. This reauthorization legislation is aimed at ending the efforts to kill the agency.
Independent Rep. Justin Amash spoke out forcefully against reauthorization, tweeting:
The Ex-Im Bank is inherently corrupt. It unfairly forces Americans to subsidize foreign entities that buy things from well-connected corporations—particularly Boeing. This corporate welfare program expires next week, yet the House is voting Friday to reauthorize it. Let it die.
Ex-Im puts taxpayers on the hook for loans to foreign governments and corporations to buy things from well-connected companies (especially Boeing), which is unfair to the vast majority of Americans who don’t benefit from Ex-Im yet are assuming the financial risk for the loans.
There was bipartisan support for reauthorizing the agency, however, as well as a large coalition of interest groups pushing for this legislation. Linda Dempsey of The National Association of Manufacturers spoke for many of these supporters in defense of the agency:
As the United States’ official export credit agency, the Ex-Im Bank is a critical tool to support American jobs through exports. It has become increasingly vital in the face of more than 90 countries that operate more than 100 foreign export credit agencies (ECAs) around the world. From China and Germany to Canada and Japan, other countries are working to boost their farmers, manufacturers and workers and win foreign sales.
The legislation now heads to the Senate, where it is likely to pass.
Do you support reauthorizing an agency that provides federal loan guarantees for companies that purchase U.S. exports?