EX-IM CRITICS GET VOCAL AS DEADLINE APPROACHES: The Export-Import Bank faces a Sept. 30 deadline for reauthorization and critics are making a push to either shut down the bank or significantly restrain its power. A new paper today from the Competitive Enterprise Institute, a free-market think tank opposed to the bank, argues that allowing the bank to close its doors will save taxpayer money and end cronyism. Supporters of the bank contend that the institution is self-sufficient and helps U.S. exporters remain competitive against foreign rivals.
“The Export-Import Bank should be closed for a number of reasons, including internal corruption, corporate rent-seeking, and economic inefficiency,” CEI’s Ryan Young writes.
Legislation on the table: Despite its objections, CEI acknowledges that bipartisan legislation introduced in July by Sens. Kevin Cramer and Kyrsten Sinema will likely get enough support to pass. The bill would extend the bank’s charter for 10 years, raise the bank’s financial exposure cap to $175 billion over seven years and allow for the creation of a temporary board to lead the agency if the Senate refuses to confirm board members necessary to approve large transactions. CEI argues that the terms of the bill are far too generous, warning that “fortunately, this battle is not over, regardless of how the 2019 reauthorization cycle plays out.”
Read the whole newsletter here.