Sending Office: Honorable Justin Amash
Please join me as an original cosponsor of the Export-Import Bank Termination Act. This important legislation phases out the Export-Import Bank, ensuring taxpayers will no longer
be on the hook for the bank’s billions of dollars in corporate welfare.
The Ex-Im Bank provides loans, loan guarantees, and other financial benefits to foreign buyers of U.S. exports. Despite its mandate, this activity does not “create” jobs or increase
net exports—it simply redistributes commerce from elsewhere to the bank’s politically connected clients. In 2014, the last year Ex-Im was fully operational, 40 percent of its direct loans and guarantees went to support a single multibillion-dollar corporation
that clearly doesn’t require special government financing.
Some claim—wrongly—that the bank functions at no cost to taxpayers. In fact, Ex-Im’s financing and guarantees expose taxpayers to massive liability. According to CBO’s fair-value
estimates, which account for market risk, the bank costs taxpayers millions of dollars each year (a 2014 estimate pegged the 10-year cost at $2 billion). The bank’s below-market interest rates also distort the market and crowd out private-sector trade financing.
Only a small fraction of U.S. exports are supported by Ex-Im—less than two percent as of 2015—and most of these purchase arrangements could have been made with private financing.
In other words, a few well-connected businesses are receiving the benefits of Ex-Im at the expense of everyone else. Ex-Im is both unnecessary and unjust.
Please join me as a cosponsor of the Export-Import Bank Termination Act to eliminate the Ex-Im Bank, a bastion of Washington political cronyism, once and for all.
For more information or to cosponsor, please contact Elizah Stein (email@example.com) in my office.
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