Export-Import Bank of the United States: Overview and Reauthorization Issues

The Export-Import Bank of the United States (Ex-Im Bank, EXIM, or the Bank), a wholly U.S. government-owned corporation, aims to support U.S. jobs by financing and facilitating U.S. exports when: (1) the private sector is unwilling or unable to provide financing at acceptable rates; and/or (2) U.S. exports are competing against exports from foreign countries that receive financial backing from their national governments. Ex-Im Bank also is one of approximately 117 export credit agencies (ECAs) operated by more than 90 governments globally. ECAs commonly are defined as public or semi-public institutions that governments use generally to support national exporters competing to sell their goods and services in foreign markets. Ex-Im Bank is headed by a Board of Directors with five voting positions that are subject to presidential appointment and Senate advice and consent. A quorum of the Board (three members) is required for the Board to conduct business, including to make policy and approve transactions; transactions below $20 million can be approved at below-Board levels under delegated authority. The Bank provides direct loans to foreign buyers of U.S. exports, guarantees of loans by financial institutions to foreign buyers, and export credit insurance for U.S. exporters and financial institutions. In addition to providing financing for U.S. exports, the Bank provides financing for domestic export-oriented projects and has a new initiative called Project Vault to establish a domestic critical minerals reserve. A major program highlighted by Ex-Im Bank is its China and Transformational Exports Program (CTEP), which provides financing to counter export financing and subsidies by the People’s Republic of China (PRC, or China) and/or advance U.S. comparative leadership in certain high-technology export areas. Bank transactions are demand-driven, fee-based, backed by the full faith and credit of the U.S. government, and subject to statutory and policy requirements. Ex-Im Bank also abides by international rules for ECAs under the Organisation for Economic Co-operation and Development (OECD). Congress has various responsibilities with respect to Ex-Im Bank. Congress established Ex-Im Bank in its current form in 1945 under a general statutory charter, the Export-Import Bank Act of 1945, as amended (12 U.S.C. §§635 et seq.). Congress periodically has debated and reauthorized the agency’s charter. The most recent reauthorization took place in December 2019, when Congress extended the Bank’s charter for seven years until December 31, 2026 (P.L. 116-94, Div. I, Title IV). If Congress does not reauthorize the Bank or does not take other action to waive the sunset, the Bank would be unable to approve new transactions, but could manage its existing financial obligations and perform certain other functions for “an orderly liquidation” of its assets (12 U.S.C. §635f). Congress does not approve individual Ex-Im Bank transactions, but has set general statutory parameters for the Bank’s support in the charter. Ex-Im Bank financing is subject to statutory requirements such as to: support, not compete with private sector financing; have a “reasonable assurance of repayment”; and be “fully competitive” with the rates, terms, and conditions of foreign ECAs. Congress also has set notification requirements for certain transactions, including those that are above $100 million, before final approval by the Board. Congress also provides appropriations for the Bank and conducts oversight of its activities. Additionally, the Senate has responsibility to provide advice and consent for presidential appointments to Ex-Im Bank Board and certain other positions. Ex-Im Bank’s financing authority has been constrained at times. In 2015, the Bank’s charter lapsed for five months when Congress did not take action to renew it amid debate over rationales for and against the Bank’s existence. This period overlapped with a lapse in a quorum of the Board for nearly four years during 2015 to 2019, during which the time Ex-Im Bank could not approve larger, long-term deals that required Board approval. The 119th Congress faces a number of issues on Ex-Im Bank, chief of which is whether or not to renew Ex-Im Bank’s charter. Should Congress decide to reauthorize the Bank, it would need to consider for how long to renew the Bank’s charter. It also could consider other issues, such as whether or not to change its lending limit; whether or not to modify the scope or aims of its authorities and risk management requirements; and whether or not to codify and/or set parameters for Bank initiatives established by the Administration, such as the critical minerals-focused Project Vault or Make More in America (MMIA) domestic financing initiative. Congress also faces issues such as consideration of Ex-Im Bank’s FY2027 budget request and FY2027 appropriations, and the Senate faces consideration of potential Ex-Im Bank Board nominees.