Ex-Im Bank Reauthorization House Bill Draws Veto Threat
House Speaker Nancy Pelosi called the Export-Import Bank renewal a very important piece of legislation, at her press conference Nov. 14, and said it shouldn't be a bill that divides the two parties. However, The United States Export Finance Agency Act of 2019, which reauthorizes the Ex-Im Bank for 10 years, passed out of committee with no Republican support.
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The White House issued a veto threat on Nov. 14, focusing on the provisions in the renewal that promote the export of renewable energy technologies and those that prohibit financing to bad actors. The top Republican on the House Financial Services Committee had tried to block Chinese borrowers more broadly, and that was defeated. The administration suggested that if Chinese companies are constrained in their ability to borrow at the advantageous Ex-Im rates, they could use subsidized borrowing authority from other countries, which would mean, for instance, they might buy Airbus planes rather than Boeing aircraft.
With regard to the energy plank, the statement said: “The Administration supports an energy source and technology-neutral approach to financing that discourages the consideration of non-market criteria in the financing process." The White House supports a 10-year reauthorization, the statement said, "H.R. 4863, however, does not represent the type of bipartisan, bicameral approach needed to appropriately accomplish that goal."
The bill would increase the bank’s lending authority from $135 billion to $175 billion and changes the name of the Export-Import Bank to the United States Export Finance Agency. It would also allow large loans to go forward even if the Senate does not keep enough members on the board to have a quorum. This has been an issue in recent years.
Debate is underway on the bill, and a vote was expected on the House floor Nov. 14. The New Democrat Coalition issued a press release Nov. 14 lauding the bill. “Reauthorizing the Export-Import Bank is really important for export-dependent states like Washington,” NDC Chair Derek Kilmer, D-Wash., said. “It’s an essential tool in the trade toolbox that helps enable American-made products to be sold around the world." Boeing is the biggest beneficiary of the export financing offered by the bank.