Renewal of Export-Import Bank is Still Possible

July 15, 2015

        After much speculation over the future of the Export-Import Bank, Congress failed to vote on legislation that would renew the bank’s charter before June 30^th. This caused the agency to shut its doors to new business for the first time since 1934. A partisan divide played a large role in the failure to restore the charter, as Republicans continuously blocked renewal efforts by criticizing the bank for giving out “corporate wealth” to companies that should be able to export goods without government assistance. Yet, many supporters are hopeful of a charter renewal before the fiscal year funding ends, which would avoid full closure of the bank on September 30^th. 
        Currently, many supporters of the agency have spoken out about the potential consequences of terminating the bank and have urged Congress to renew the charter. The White House released a statement warning that American businesses would fall behind China with the closure of the Export-Import Bank. 
        In an attempt to avoid these repercussions, two renewal bills are being discussed. The legislation backed by Representative Denny Heck (D-WA) would extend the bank’s charter for seven years and boost its financial limit. However, it would also bar the agency from financing overseas coal power plants. The other piece of proposed legislation is sponsored by Representative Stephen Fincher (R-TN). This bill renews the charter for only five years, decreases the agency’s financial limit, and does not restrict the financing of coal projects. One of these bills may be attached to a piece of “must-pass” legislation, allowing the bank to avoid closure.

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