Six weeks after losing its authorization, the Export-Import Bank has not laid off or furloughed any of its workers yet, and instead appears to be hoping that Congress will find a way to reauthorize the bank when it returns in September.
Ex-Im lost its authorization on June 30, which has stopped it from processing new loans and loan guarantees for overseas purchases of U.S. goods and services. But the bank is still operating, as staff is needed to manage loans and guarantees that were approved before June 30.
According to a spokesman, the bank has shifted all the employees who would normally be working on new business to “other duties.” The spokesman declined to say how many of the bank’s roughly 480 workers have made that shift, and declined to say exactly what they’re doing now.
But he did say they’re still working, and that no one has lost their job yet.
“Since the bank is funded through the end of the fiscal year, the lapse has resulted in no workforce reductions or furloughs,” the spokesman said. “Employees who process and approve new transactions have been assigned to other duties by their supervisors.”
In a Wednesday note to customers and stakeholders, the bank’s chairman and president, Fred Hochberg, indicated he’s hopeful that Congress will reauthorize the bank when it gets back, and saw a July Senate vote as a good sign.
“While our lapse in authority continues, I can report that the United States Senate recently voted 64 to 29 for a five-year Ex-Im reauthorization bill as part of a long-term highway bill,” he wrote. “That bill has now moved to the House for consideration.”
Hochberg didn’t mention that House GOP leaders have said they aren’t fans of that bill at all, in large part because language reauthorizing the bank is on it. Congress left for the summer break after passing a separate bill funding highway programs through late October, leaving the Senate bill with the Export-Import Bank language in limbo.
It’s possible Congress could consider reauthorizing the bank again through a longer-term highway bill, or another bill. But that plan is still expected to be opposed by Republicans, many of whom have cheered the lapse in authority that will be more than two months old when Congress gets back.
In the meantime, Hochberg said this week that people who use the bank’s export credit insurance or working capital loan guarantees will soon be told those tools will expire at some point. But Hochberg also made it clear that he’s still looking for Congress to restore the bank in full.
“On behalf of everyone here at EXIM Bank, I want to express our hope and determination that current efforts to reauthorize EXIM Bank will succeed once Congress returns in September,” he added. “We hope to get back to work equipping you to grow your business and support American jobs through exports.”
