Like Causes?

Install the App
TRY NOW
Countable Is Officially Causes.com

house Bill H.R. 3114

Shutting Down the Export-Import Bank in 3 Years

Argument in favor

The Export-Import Bank is nothing more than taxpayer-backed corporate welfare. Export subsidies — like those provided by the Ex-Im Bank — don’t create jobs, and only fuel an international subsidy bidding war.

Chase's Opinion
···
07/21/2017
Again, I'm marveling at the left's response. The ex-im bank gives a huge market advantage to large corporations at the expense of taxpayers.you'd think the left would jump on board right away but nope, republicans proposed it so it must be evil!
Like (29)
Follow
Share
Leo's Opinion
···
07/21/2017
The import export bank loans accounted for only 1.2 percent of exports in 2013. This does not seem to be worth using taxpayer money for when there are infrastructure investments in this country that could use funding.
Like (15)
Follow
Share
Pat's Opinion
···
07/21/2017
Has no sound economic justification for existing. Is a rent-seek by politically connected trading firms. Let's get rid of it for good. All trade-related banking is better done banks of trading agents choosing, not politicians' choosing.
Like (12)
Follow
Share

Argument opposed

With many of our economic competitors subsidizing their exports, failing to follow suit through the Ex-Im Bank would cost the U.S. jobs and hit small businesses the hardest. In uncertain economic times, those are consequences we can’t afford.

Karin 's Opinion
···
07/21/2017
This move will hurt the small American exporters the most. Having worked in international banking for many years I probably know more about this than most politicians. "The Export–Import Bank of the United States (abbreviated as Ex-Im Bank or the Bank) is the official export credit agency (ECA) of the United States federal government.[1][2] Operating as a wholly owned federal government corporation,[1] the Bank "assists in financing and facilitating U.S. exports of goods and services".[1] Under its charter, the Bank does not compete with private sector lenders, but rather provides financing for transactions that would otherwise not occur because commercial lenders are either unable or unwilling to accept the political or commercial risks inherent in the deal."
Like (104)
Follow
Share
JayFeat's Opinion
···
07/21/2017
While there are issues with the Export-Import Bank they aren't large enough to call for a shutdown of bank as a whole. The main issue with the Ex-Im Bank is the amount of profit large businesses see because of it, and because of that we need to do some light reform to ensure that only small businesses can reap the bank's benefits. Without it would be more difficult for most small exporters to get their products sold across the world, and therefore we would see a reduction of American products overseas. As for the distorts the markets argument, foreign governments already do this exact same thing. By doing this we don't distort the market, we balance it for the sake of our own companies. We need to insure that America stays a top player on the global economic stage, and this is a way to do it on the small business level.
Like (50)
Follow
Share
Marc's Opinion
···
07/21/2017
This is a fools move and will result in a depression in America
Like (29)
Follow
Share

What is House Bill H.R. 3114?

This bill would abolish the Export-Import Bank in three years, and reduce the authorities of the Bank in the interim period. The Export-Import Bank was reauthorized in December 2015 through September 30, 2019.

Established in 1934 by President Franklin D. Roosevelt, the Export-Import Bank, is self-described on its website as: 

"The official export credit agency of the United States. EXIM is an independent, self-sustaining Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services ... When private sector lenders are unable or unwilling to provide financing, EXIM fills in the gap for American businesses by equipping them with the financing tools necessary to compete for global sales."

Basically, the bank guarantees loans for customers abroad buying U.S.-made goods who otherwise would not take the commercial or political risks.

This bill would keep the Export-Import Bank from accepting new applications 30 days after it passes. One year in, the bank could no longer renew or enter into contracts. At the end of three years, the Bank’s remaining functions would be transferred to the Department of the Treasury — which at that point would be limited to loan repayment and oversight. The Export-Import Bank’s Office of the Inspector General would be abolished along with the Bank, and the Department of the Treasury would also take over ongoing audits, investigations, inspections, and reports.

The Secretary of the Treasury would be responsible for winding down the Bank’s operations, and have the authority to delegate tasks, transfer assets and personnel, enter into contracts, and employ experts to aid in those activities. Once all of the Bank’s obligations expire, the Treasury’s authorities would expire as well, and the Secretary would notify Congress.

Assets and funds that are currently available to the Bank could continue to be used for the three years, and existing savings provisions would be in effect until the Bank is finally terminated.

Impact

Domestic and international companies that do business with the Export-Import Bank; the Export-Import Bank and its employees; the Department of the Treasury; Congress; and the Secretary of the Treasury.

Cost of House Bill H.R. 3114

A CBO cost estimate is unavailable.

More Information

In-Depth: After introducing similar legislation during the 113th Congress, this bill’s sponsor Rep. Justin Amash (R-MI) noted: 

“The Export-Import Bank is a prime example of Washington's addiction to political cronyism. Instead of allowing businesses to compete in a free market, politicians pick winners and losers. Meanwhile, taxpayers assume the financial risk for the bank's federally backed loans while a few corporations pocket the profits.”

The Export-Import Bank (or Ex-Im Bank) has been criticized as "corporate welfare"  because several of the companies benefitting from its existence are among the largest corporations in the U.S. About 40 percent of the Ex-Im Bank’s 2014 authorizations benefited Boeing alone, and nearly two-thirds of the Bank’s 2013 money went to 10 U.S. companies, including General Electric, Caterpillar, and Ford along with Boeing. Of the $2.3 trillion that the U.S. exported in 2013, the Ex-Im Bank only approved $27.3 billion of loan guarantees — amounting to about 1.2 percent of the value of that year’s exports.

Proponents of the Ex-Im Bank point out that nearly 90 percent of the Bank’s total transactions involved small businesses, and in 2014 those transactions were valued at about $5 billion, making up around 20 percent of the total value of the Bank’s activity that year. It has also been noted by the Bank’s supporters that these activities supported over 160,000 U.S. jobs in 2014.

This legislation has the support of nine Republican cosponsors in the House.


Of Note: In addition to doubts about the Ex-Im Bank’s benefits, it has been maligned for its cost — its price tag was estimated at $2 billion between 2015 and 2024 by the Congressional Budget Office.

Doubts about the long-term survival of the Ex-Im Bank date back at least as far as December 2011, when the White House drafted a contingency plan to be put into place if Congress failed to authorize the Bank’s appropriations during that budget cycle.

Media:

Summary by Eric Revell
(Photo Credit: Flickr user Tim Evanson)

AKA

Export-Import Bank Termination Act

Official Title

To abolish the Export-Import Bank of the United States, and for other purposes.

bill Progress

  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Financial Services
    IntroducedJune 29th, 2017
    Chase's Opinion In Favor
    ···
    07/21/2017
    Again, I'm marveling at the left's response. The ex-im bank gives a huge market advantage to large corporations at the expense of taxpayers.you'd think the left would jump on board right away but nope, republicans proposed it so it must be evil!
    Like (29)
    Follow
    Share
    Karin 's Opinion Against
    ···
    07/21/2017
    This move will hurt the small American exporters the most. Having worked in international banking for many years I probably know more about this than most politicians. "The Export–Import Bank of the United States (abbreviated as Ex-Im Bank or the Bank) is the official export credit agency (ECA) of the United States federal government.[1][2] Operating as a wholly owned federal government corporation,[1] the Bank "assists in financing and facilitating U.S. exports of goods and services".[1] Under its charter, the Bank does not compete with private sector lenders, but rather provides financing for transactions that would otherwise not occur because commercial lenders are either unable or unwilling to accept the political or commercial risks inherent in the deal."
    Like (104)
    Follow
    Share
    JayFeat's Opinion Against
    ···
    07/21/2017
    While there are issues with the Export-Import Bank they aren't large enough to call for a shutdown of bank as a whole. The main issue with the Ex-Im Bank is the amount of profit large businesses see because of it, and because of that we need to do some light reform to ensure that only small businesses can reap the bank's benefits. Without it would be more difficult for most small exporters to get their products sold across the world, and therefore we would see a reduction of American products overseas. As for the distorts the markets argument, foreign governments already do this exact same thing. By doing this we don't distort the market, we balance it for the sake of our own companies. We need to insure that America stays a top player on the global economic stage, and this is a way to do it on the small business level.
    Like (50)
    Follow
    Share
    Marc's Opinion Against
    ···
    07/21/2017
    This is a fools move and will result in a depression in America
    Like (29)
    Follow
    Share
    Rodney's Opinion Against
    ···
    07/21/2017
    A NAY vote is the correct vote. Everything republicans do screws up the the economy big time. Everyone suffers, especially the working class. Every time they get power we have very significant economic hiccups and recessions/depressions. Abolishing this export/import bank will be catastrophic.
    Like (24)
    Follow
    Share
    Leo's Opinion In Favor
    ···
    07/21/2017
    The import export bank loans accounted for only 1.2 percent of exports in 2013. This does not seem to be worth using taxpayer money for when there are infrastructure investments in this country that could use funding.
    Like (15)
    Follow
    Share
    Derek's Opinion Against
    ···
    07/21/2017
    Reforming the bank to assist smaller US businesses instead of only corporations seems the more legitimate path forward than abolishing a very useful agency.
    Like (14)
    Follow
    Share
    Doreen's Opinion Against
    ···
    07/21/2017
    With 90 percent of its business being contracted with small business, this would give small businesses no assistance in the global market. I know that there are also some high rollers that use this as well. But if this goes away, those high rollers have no problem finding assistance; but the small businesses will lose all power and assistance.
    Like (13)
    Follow
    Share
    Pat's Opinion In Favor
    ···
    07/21/2017
    Has no sound economic justification for existing. Is a rent-seek by politically connected trading firms. Let's get rid of it for good. All trade-related banking is better done banks of trading agents choosing, not politicians' choosing.
    Like (12)
    Follow
    Share
    KansasTamale's Opinion Against
    ···
    07/21/2017
    Why would the government want to do away with something that helps small businesses compete in the world market?? That's what this bill will do. Our economic competitors subsidize their exports. Think about it, if we fail to follow suit using the Ex-Im Bank for small businesses so that they can continue to compete with big businesses in the US and the subsidized exports from other countries. This would cost the U.S. jobs and hit small businesses the hardest. These are consequences we can’t afford.
    Like (9)
    Follow
    Share
    Patricia's Opinion Against
    ···
    07/21/2017
    Sometimes things just need to be fixed rather than destroyed. I wish this administration could understand that for many issues!
    Like (7)
    Follow
    Share
    Kathy's Opinion Against
    ···
    07/21/2017
    This is a ridiculous move for America .
    Like (7)
    Follow
    Share
    libertyLOL's Opinion In Favor
    ···
    07/21/2017
    I thought we all hated Corporate Greed? The Export-Import Bank is yet another Big Government Scheme to finance Big Business at expense of the many. "In fiscal years 1998 through 2005, Ex-Im has issued $63.5 billion in loans and long-term guarantees. In those years, $33 billion of Ex-Im subsidies went to Boeing. That means that a majority — 52 percent — of Ex-Im’s money went to help just one company.” “Of the $9.3 billion in loan guarantees Ex-Im issued in fiscal 2009, $8.4 billion subsidized Boeing sales.” The government’s intervention into the economy not only distorts the Free Market exchange of goods and services but, also, favors those Big Businesses connected to the elected. No Thanks. Hard Pass.
    Like (7)
    Follow
    Share
    burrkitty's Opinion Against
    ···
    07/22/2018
    Helps American businesses get products sold overseas, turns more money back to the treasury most years, default rate of less than 1%... why would we want to stop this? Some light reforms, sure, but shutting it down? That’s stupid.
    Like (5)
    Follow
    Share
    I.Got.an.Idea...'s Opinion Against
    ···
    07/22/2017
    Yet another Conservative tactic to put more control in a very few hands with all of the power. This appears to have more to do with consolidating power into something Republicans can manipulate more easily, without any oversight. How about modifying the program, such that it focuses on the small businesses that it was apparently intended to help. After a business reaches a specific revenue milestone, it can no longer be eligible to use this vehicle for business transactions outside of the United States.
    Like (5)
    Follow
    Share
    Jeanne's Opinion Against
    ···
    07/21/2017
    To quote Christopherhall: There is a middle ground here: change policy and mission so that ExIm Bank only helps small exporters, linking it closely with the SBA. That will shrink its budget, fight waste, level the playing field and refocus ExIm on new, small and often tech-based businesses, thereby polishing and refining a successfully-run government agency. We need to stop breaking and destroying our government in a quest for "small government" because there is a point where government will be too small to protect our rights.
    Like (5)
    Follow
    Share
    GatewayJohn's Opinion Against
    ···
    07/21/2017
    As a former employee of Exim I would hate so see that happen.Too few know how the bank works. Its role in international projects is now challenged by China and regional development bank. Its role in supporting Boeing and other workers is unparalleled. I strongly support continuation of the Bank
    Like (4)
    Follow
    Share
    Zaina's Opinion Against
    ···
    07/21/2017
    We don't want to hurt the smaller businesses.
    Like (4)
    Follow
    Share
    Jb's Opinion Against
    ···
    07/21/2017
    If Franklin D Roosevelt started it and the Republicans want to shut it down - I say HELL NO!
    Like (4)
    Follow
    Share
    Anre's Opinion Against
    ···
    07/21/2017
    Incredulous the havoc and ineptitude this administration continues display seemingly unabated by the GOP who have chosen party over people. Where is the focus on small businesses, one of the driving forces behind the economy? Sooner or later the chickens will come home to roost.
    Like (4)
    Follow
    Share
    MORE