The Senate pushed forward an amendment over the weekend that would reauthorize the Export-Import Bank, which guarantees loans to foreign entities to buy products from United States businesses.
The 67-26 vote ended debate on the amendment, paving the way for senators to add it to the federal highway spending bill. A vote to do that is expected to occur later Monday.
Reauthorizing the bank is seen as a boon to the defense industry, as officials from industry organizations have said the bank provides international customers the financing needed to keep U.S. contractors competitive against other vendors.
Congress allowed the bank’s charter to expire on June 30 amid an impasse within the Republican Party. Although Ex-Im retains the support of most Democrats and many Republicans, some in the GOP argue that the loans and loan guarantees granted by the bank—which are backed by U.S. taxes—allow corporations to profit at taxpayers’ expense. Ultimately, 24 Republicans voted in favor of ending debate on the bill, with all 26 “nay” votes coming from GOP lawmakers as well.
The amendment was authored by Sen. Mark Kirk (R-Ill.) and Sen. Heidi Heitkamp (D-N.D.)
“We are one step closer to keeping American jobs here in America and not lost to countries like China,” Kirk said in a written statement after the Sunday vote.
The Aerospace Industries Association (AIA), which represents the interests of more than 300 commercial and military aerospace companies, has called for Congress to reauthorize the bank. Should Ex-Im be permanently shuttered, it may be more difficult for firms to turn export opportunities into actual sales, said AIA President and CEO Dave Melcher in a letter sent to Capitol Hill last week.
“We cannot underscore enough the importance of the Ex-Im Bank to our industry and its vast ecosystem of small and medium sized companies in the aerospace and defense industrial base. For many of us, the livelihood of our workers and their families depend on U.S. exports,” he wrote. “Sales of passenger and business aircraft, helicopters, satellites, spacecraft and launch vehicles and countless other products to foreign entities are a cornerstone of our industry. In 2014, the Ex-Im Bank supplied more than $20 billion in financing to support roughly $27 billion in exports. Those transactions supported more than 160,000 American jobs.”
Senate Majority Leader Mitch McConnell (R-Ky.) called the bank a “New Deal relic.”
“If a project is worthy, private banks will step in to fund it, and if it not worthy, we should definitely not be financing it by putting American taxpayers on the hook. Either way, Ex-Im is not necessary,” he said on Sunday.
Although McConnell personally didn’t support reauthorizing the bank, he understood that there was bipartisan support for doing so and thus will allow a debate and vote, he said.
Sen. Ted Cruz (R-Texas) harshly criticized McConnell for doing so, saying that the majority leader had taken “extraordinary steps” to force a vote on the bank, which was contrary to the promises he made to Cruz and other Republicans.
Even if the amendment is included in the highway spending bill and passed by the Senate, Ex-Im supporters will face an uphill battle. House Majority Leader Kevin McCarthy (R-Calif.), who opposes re-authorization, said today that the lower chamber will not take up the highway bill before it leaves for August recess Thursday.