Export-Import Bank. This legislation (H.R. 2072) reauthorized the U.S. Export-Import Bank for two years and increased the agency’s lending cap from $100 billion to $140 billion. The bank issues loans and loan guarantees to foreign governments or companies for the purchase of U.S. products.
The Senate passed H.R. 2072 on May 15, 2012 by a vote of 78 to 20 (Roll Call 96). We have assigned pluses to the nays because the federal government has no constitutional authority risking taxpayers’ money to provide loans the private sector considers too risky to provide. Indeed, U.S. government backed export financing is a form of corporate welfare, and if the Ex-Im Bank goes bust (as happened to Freddie Mac and Fannie Mae), the taxpayers will get stuck holding the bag.
