Export-Import Bank Reauthorization: Frequently Asked Questions (CRS Report for Congress)
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| Release Date |
Revised April 13, 2016 |
| Report Number |
R43671 |
| Report Type |
Report |
| Authors |
Akhtar, Shayerah Ilias;Carpenter, David Hatcher;Taylor, Julia;Tollestrup, Jessica |
| Source Agency |
Congressional Research Service |
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Summary:
The Export-Import Bank of the United States (Ex-Im Bank or the Bank), a wholly owned federal government corporation, is the official export credit agency (ECA) of the U.S. government. Its mission is to assist in financing and facilitating U.S. exports of goods and services to support U.S. employment. Ex-Im Bank operates under a renewable general statutory charter (Export-Import Bank Act of 1945, as amended), previously extended for nine months through June 30, 2015 (FY2015 continuing resolution, Section 147 of P.L. 113-164). Congress did not renew the charter before it expired on July 1, 2015. As a result, some but not all of the Bank's statutory authorities have expired. Ex-Im Bank retains statutory authority (12 U.S.C. Section 635f) to "continu[e] as a corporate agency of the United States" and exercise any of its functions "for purposes of orderly liquidation." The charter offers little guidance on what an "orderly liquidation" entails. In general, Ex-Im Bank states that, under an authorization lapse, no new loan, guarantee, or insurance commitments can be approved by its Board or under delegated authority, but the Bank may continue administering and servicing existing obligations.
The Ex-Im Bank reauthorization debate presents a number of scenarios for Congress. If Congress chooses to reauthorize Ex-Im Bank, considerations may include for how long to renew its authority and under what terms, including any changes to its charter. If Congress allows it to expire permanently, it need not take any action or could pass legislation, for instance, specifying parameters for the orderly liquidation. Consideration of these issues raises a number of questions that are frequently asked, including:
What is the Export-Import Bank and the debate over its reauthorization?
What is its leadership structure?
What are its programs, policies, and activities?
What is its international context?
How does its budget work?
How does it manage risk?
What are the implications of a sunset in authority for the Bank's activities?
What are historical and current approaches to Ex-Im Bank reauthorization?
Congress has actively debated Ex-Im Bank reauthorization in the 114th session of Congress, with multiple bills introduced, many of which have focused on reforms to the Bank. On July 30, 2015, the Senate passed H.R. 22 with an amendment containing a six-year surface transportation reauthorization. That amendment also includes a provision (agreed to by a vote of 64-29) to reauthorize the Bank through FY2019; decrease its exposure cap to $135 billion for each of FY2015-FY2019; and make reforms, including in terms of risk management, fraud controls, ethics, and international negotiations on export credit financing. On November 5, 2015, the House voted (363-64) to adopt its version of the highway bill as an amendment to the Senate's version of H.R. 22, including substantively the same Ex-Im Bank extension. In considering H.R. 22, the House rejected several amendments that generally were viewed as placing additional limitations on the Bank's activities. The House and Senate are expected to try to resolve differences with regard to H.R. 22 through conference proceedings.
Additional CRS resources on Ex-Im Bank include CRS Report R43581, Export-Import Bank: Overview and Reauthorization Issues, by Shayerah Ilias Akhtar, and CRS In Focus IF10017, Export-Import Bank (Ex-Im Bank) Reauthorization, by Shayerah Ilias Akhtar.
