Two senators plan to unveil a bill Wednesday that would keep the US Export-Import Bank running for another ten years and significantly boost its financial capacity, aiming to strengthen American companies competing in energy and mining sectors worldwide.
North Dakota Republican Kevin Cramer, who is working with Virginia Democrat Mark Warner on the proposal, said President Donald Trump fully backs expanding the Ex-Im Bank’s resources. According to Cramer, the president understands how important the institution is for American business interests abroad.
Lending cap would jump to $205 billion
The proposed legislation would raise the bank’s lending limit from $135 billion to $205 billion, Cramer told reporters. This $70 billion increase comes as the Trump administration works to lessen America’s reliance on China for rare earth elements and other minerals considered vital to national security.
Beijing slapped export restrictions on several key rare earth materials last year. These elements go into everything from military aircraft to electric cars, and the move escalated tensions between the world’s two largest economies. The escalating trade conflict has prompted lawmakers to seek more aggressive tools for economic competition.
Time is running short for the bank’s current authorization, which ends in December. The Ex-Im Bank helps American businesses get financing to sell products internationally, particularly when regular bank loans aren’t an option. Both chambers of Congress must approve any new authorization bill before Trump can make it law.
Cramer described the bank as a way to help “foreign buyers of American products” and said it would shrink the US trade gap by making it easier for American companies to export goods.
“To balance trade, obviously people need to buy more stuff from us,” Cramer explained. “You might be able to sweeten the pot a little bit with favourable financing terms that you couldn’t have without the Export-Import Bank.”
The senator also suggested the bank’s financing could help Washington negotiate better trade agreements, serving as an incentive for other countries.
“The president uses tariffs as a stick . . . he wields it as a pretty strong weapon,” Cramer said. “The Export-Import Bank makes some un-doable deals doable. I think the president, as a matter of business acumen, understands that.”
He pointed to military equipment, medicines, food products, energy, and critical minerals as areas where the bank could help American sellers and strengthen relationships with friendly nations.
Trump’s shifting stance on the agency
Congress last approved funding for the Ex-Im Bank in 2019, but the agency has drawn fire from politicians on both sides of the aisle who argue it funnels taxpayer dollars to private businesses. Liberal Democrats have questioned whether some Ex-Im investments harm the environment or violate human rights standards.
Trump himself called the bank “unnecessary” and a “one-way street” during his 2016 presidential campaign, describing it as “sort of a feather-bedding for politicians and others, and a few companies.” He reversed course later, calling it a “very good thing” and backing its 2019 reauthorization.
The White House did not respond when asked to comment on the new legislation. Officials have remained quiet regarding the specific details of the proposed expansion.
Cramer acknowledged he expects pushback from some lawmakers but warned that refusing to fund the bank would put America at a competitive disadvantage.
“To me, it is not even really levelling the playing field, it’s just adding a tool to our tool chest . . . that every other developed nation has,” Cramer said.
Just days ago, the Ex-Im Bank revealed plans to supply $10 billion in financing to stockpile “essential raw materials” throughout the United States. Manufacturers like automakers would be able to access these supplies as needed.
The initiative aims to build stronger supply chains in America and counter Beijing’s dominance over mineral and battery production networks.
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Source: https://www.cryptopolitan.com/senators-push-70-billion-to-counter-china/
