Jul 12, 2016

Opening the Floodgates to Corporate Welfare

Post by Derek Yale

Arlington, VA — Today the House Appropriations Committee adopted an amendment to the FY 2017 State and Foreign Operations Appropriations bill that, if passed into law, would open the floodgates to billions of dollars in corporate welfare through the Export-Import Bank.

The Ex-Im Bank’s board of directors currently does not have a quorum, which means that the bank is limited to financing small-business transactions worth $10 million or less.

If passed, the adopted amendment, sponsored by U.S. Rep. Charles Dent (R-Penn.), would change the rules of the bank’s quorum requirement, loosening an important check on corporate welfare and giving Ex-Im Chairman Fred Hochberg, a political appointee, even more unaccountable control over the bank’s subsidy authority.

Freedom Partners Senior Policy Advisor Andy Koenig Issued the Following Statement:

“Chairwoman Granger and Rep. Dent are sidestepping the law and opening the floodgates to billions of dollars in more corporate welfare. This irresponsible amendment would effectively provide the Obama administration with a new Ex-Im czar with near-unilateral control over billions of dollars in foreign subsidies.

“You would expect this type of political maneuver from President Obama or Nancy Pelosi, but not from Republican policymakers. As the nation heads for another unnecessary budget crisis this fall, the Republican House is helping Hillary Clinton put the Ex-Im Bank on steroids.”