Subcommittee Approves Bill on Ex-Im Bank Financing, Content Guides
The House Financial Services Subcommittee1 marked up and approved H.R. 2072, a bill to reauthorize the Export-Import Bank and provide it with more financing and domestic content guidelines.
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Finance Cap Would Increase by 60%, Content Guides
The Subcommittee’s version of the “Securing American Jobs Through Exports Act (H.R. 2072), would, among other things:
- increase the Bank’s financing cap from the current $100 billion to $160 billion for fiscal year 2014 and each FY thereafter;
- require the Bank to establish, after notice and comment, clear and comprehensive domestic content guidelines. (According to the Bank’s domestic content requirements, financing is provided for the lesser of 85% of the Net Contract Price or 100% of the US content.)
- give the Bank authority to use a portion of its surplus to update its information technology systems; and
- extend the authorization for the Bank’s Sub-Saharan Africa Advisory Committee for an additional 4 years.
Industry, Labor, Etc. Debated Domestic Content Requirement at May Hearing
The Subcommittee also held a May 24, 2011 hearing on Ex-Im Bank reauthorization legislation, which was generally supported by those testifying. Some witnesses recommended improvements for the Bank, such as:
- The BAFT-IFSA2 recommended that the Bank (i) continue to enhance its programs; (ii) change its domestic content requirement to support trade growth; (iii) reexamine the requirement for certain transactions to be shipped using a U.S.-flag carrier; (iv) increase the efficiency in processing times and resources.
- The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) warned against weakening the domestic content requirements.
- The Ex-Im Bank’s Inspector General testified on the need to improve the Ex-Im Bank’s information technology infrastructure.
(In March 2011, the President’s Export Council also recommended reauthorization of the Ex-Im Bank and an increase in the Bank's financing cap. However, the PEC recommended that the Bank’s financing cap be raised to $200 billion.)
1Subcommittee on International Monetary Policy and Trade.
2BAFT-IFSA is the Bankers Association for Finance and Trade -- International Financial Services Association.
(See ITT’s Online Archives or 03/15/11 news, 11031524, for BP summary of PEC’s recommendations for the Ex-Im Bank.
See ITT’s Online Archives or 05/19/11 news, 11051911, for BP summary of Senate Banking Committee’s May 17, 2011 hearing on the Ex-Im Bank.)
Markup materials, including webcast, available here
Hearing testimony and webcast available here