House Democrats and Republicans on Oct. 27 voted to resurrect the Export-Import Bank, a huge win for companies such as Boeing [BA] and General Electric [GE] that rely on the bank to help finance exports to international buyers.
The reauthorization was passed in a 313-118 vote in which nearly all Democrats and a majority of Republicans moved in favor of the bill.
Although the bank has typically garnered bipartisan support, conservative Republicans—many of whom hold top leadership positions—have called for the bank’s demise, allowing its charter to expire on June 30.
Senate Majority Leader Mitch McConnell (R-Ky.), who opposes the bank, made it clear that he will not allow the standalone Ex-Im Bill come to the floor.
“The way to achieve Ex-Im, if it’s going to be achieved in the Senate, would be in the context of the highway bill,” he told reporters on Tuesday. This July, the Senate amended the highway funding bill to include a provision authorizing Ex-Im, but the House’s highway funding bill contains no such language.
Majority Leader Kevin McCarthy (R-Calif) and Rep. Paul Ryan, (R-Wis.), the frontrunner to become the next speaker of the House, are also ardent opponents of the bill. During debate on the floor on Tuesday, Ryan slammed the bank, calling it “corporate welfare” that rewards companies with good government connections.
“Two-thirds of the money goes to 10 companies. Forty percent goes to one company,” he said, referring to Boeing. “We should be exporting democratic capitalism, not crony capitalism.”
Lawmakers applauded after his statement.
Rep. Lynn Westmoreland (R-Ga.) said Ex-Im’s lending activity picks winners and losers and has put Delta Airlines [DAL] jobs in his state at risk through its support of Boeing.
“Every time the Ex-Im bank finances a Boeing plane for Emirates Airlines, as if Emirates Airlines would need any financing, the bank is telling pilots and flight attendants and mechanics and others in my district that their jobs don’t matter to the government,” he said.
Supporters of Ex-Im argued that the bank helps U.S businesses stay competitive overseas and helps reduce the deficit. The three-month lapse in authority has already cost American jobs and sales to foreign nations, they added.
“Last month General Electric announced it would move production of large gas powered engines to Canada along with 350 jobs because the company cannot access funding from the Export-Import Bank,” Rep. Carolyn B. Maloney (D-N.Y.) said. “Boeing was recently told by a Singapore-based satellite company not even to bother bidding on a satellite contract because they lacked the financing from Ex-Im.”
Other lawmakers came to the floor to describe how the Ex-Im Bank helps facilitate small business exports.
“In my district alone, in eastern San Diego, you have nine companies. No Boeings. No G.E.s. Over 400 jobs, $60 million in exports, all underwritten by the Ex-Im Bank,” said Rep. Duncan Hunter (R-Calif.).
Rep. Bob Dold (R-Ill.) said 86 percent of the Ex-Im loans that benefit his district go to small businesses.
“Yes, Boeing does utilize the Export-Import bank. They say whenever a Boeing plane lands, 19,000 small businesses land with them,” he said.
Now that the House and Senate have passed individual measures to reauthorize Ex-Im, the two chambers should work together to ensure its charter is renewed, said David Melcher, Aerospace Industries Association’s president and CEO.
“So far, American companies have lost three space payload orders, billions of dollars in commercial airplane sales are at risk, and several companies are talking about moving operations overseas–all because Ex-Im Bank financing has not been available since July 1. Enough is enough,” he said in a written statement.