Summary: Financing provided by the Export-Import Bank of the United States (Eximbank) helps support the sale of billions of dollars worth of U.S. goods and services to foreign markets each year consistent with U.S. foreign policy interests. However, this comes at a cost to U.S. taxpayers--about $3.75 billion in appropriated program funds during the last five years. The Office of Management and Budget projects a substantial decline in these resources during the next five years. GAO identifies two options for reducing the Eximbank's subsidy costs: (1) raising fees for services and (2) reducing the risks of its programs. For example, Eximbank might cap the maximum allowable subsidies offered, limit program availability in some high-risk markets, or offer less than 100-percent risk protection. Both of these options could significantly reduce subsidy costs and would allow Eximbank to continue to operate with reduced federal funding. GAO cautions that these options need to be considered within the full context of their trade and foreign policy implications and should be consistent with Eximbank's other statutory obligations. In GAO's view, raising exposure fees within the context of ongoing international negotiations to reduce government export credit subsidies appears to be the least disruptive of the two options.
