Mar 17, 2015

House Rejects Seven-Year Reauthorization Of Export-Import Bank

Post by Freedom Partners

The House of Representatives voted Tuesday against an amendment that would have reauthorized the Export-Import Bank for seven years.

The victory comes just weeks after the House Financial Services Committee took a stand against the Export-Import Bank by rejecting a force-vote on the same issue. Rep. Alcee Hastings (D-Fla.), who offered Tuesday’s amendment to reauthorize the bank for seven years, might not realize what effect the bank has on his home state, but he should.

The Export-Import Bank only supports 1.8 percent of Florida’s exports, but the state’s taxpayers are equally liable for shouldering any debt that the bank incurs from its risky loans. In fact, the Congressional Budget Office found that the bank stands to cost American taxpayers $2 billion over the next ten years.

At least some Florida companies receive Ex-Im funds. Hencorp Becstone Capital, a financial services company based in Miami, certainly benefitted. Then again, according to the Department of Justice, the company also didn’t sell or export any products; it pocketed the public funds—apparently without oversight from the Export-Import Bank—and recently agreed to a $3.8 million settlement.

What a boon for Florida taxpayers!