Senate Fails to Reauthorize Ex-Im Bank

Yesterday the Senate fell five votes shy of reauthorizing the Export-Import Bank, a government banking program designed to help level the playing field for U.S companies who export their products in the global market.  The Ex-Im Banks charter expires May 31st, however it has been projected that it will reach its 100 billion dollar lending cap before the May deadline. 

President Obama’s goal to double American exports in five years amidst an increasingly competitive global marketplace has increased business for Ex-Im bank, and business has been very good. Ex-Im Bank has seen back two back record setting years, adding billions of dollars to the treasury. Another plus? The Ex-Im Bank is 100 percent self-sustaining, meaning that American citizens don’t pay a single tax dollar to support the bank’s endeavors.

Ex-Im bank supports large and small companies alike. Senator Lindsay Graham (R, SC), claims that Ex-Im supports one third of GE’s South Carolina gas turbine sales abroad through competitive financing options. General Electric Chief Executive Jeffrey Immelt defends the necessity for government backed programs like Ex-Im, saying, "If you're trying to sell a Boeing 737 MAX with GE engines in Africa, you've got (to compete against) a fully subsidized European superstructure and Chinese bank financing ... I think things like Exim are ways that we can level the playing field.”

The failure of Ex-Im reauthorization in the Senate as an amendment to the JOBS bill appears to be a victim of politics. Despite bi-partisan support, Ex-Im bank authorization would force the JOBS bill to go back the House for a revote instead of passing quickly through the Senate. Senate Minority leader Mitch McConnell (R-KY) urged his fellow Republicans to vote against the Ex-Im amendment in favor of passing the JOBS bill as quickly as possible.