House Majority Leader Kevin McCarthy said Tuesday that he opposes re-authorization of the Export-Import Bank but would not stand in the way of Congress extending the program.
The California Republican, speaking to reporters during a news conference on upcoming House action, said his main concern was preserving regular order in how the bank’s future is considered. That could leave the Export-Import Bank’s fate in the hands of House Financial Services Chairman Jeb Hensarling of Texas, who generally opposes reauthorization of the agency although he has indicated he might support an extension that is accompanied by significant reforms.
“I believe you should go through regular order,” McCarthy said. “You’re creating a disadvantage with government in the mix.”
There is bipartisan support for legislation to extend the Export-Import Bank, or “Ex-Im” for short, although Republicans are split on the matter and Democrats are mostly in favor. The bank provides government-backed loans to U.S. companies, ostensibly to help them compete with foreign companies that receive subsidies from their home governments.
There is heavy resistance from many Tea Party-affiliated conservatives, plus senior GOP leaders such as McCarthy and Hensarling, who oppose the agency because they believe the government shouldn’t play favorites by bestowing some companies with special loans, while leaving others to the whims of the market. Other Republicans back the bank because they believe it evens the playing field with foreign corporations that receive an otherwise unfair boost from the governments where they are headquartered.
A middle-path solution could be for Congress to extend the banks, but include major reforms as part of the legislative package. The program expires at the end of June if Congress doesn’t act.
“House Republican members, led by Chairmen Hensarling and the rest of the Financial Services Committee, are having a serious discussion about that issue,” said Michael Steel, a spokesman for House Speaker John Boehner, R-Ohio.
