Conservatives strongly oppose a renewal of the Export-Import Bank. However, the establishment members of the Republican party and, of course, the Democratic Party favor renewing this program. Why? Because the Federal Government subsidizes loans for some exports enabling the government to carry any risk in the loan and, thus, enabling the company to garner greater profits. The Ex-Im Bank is now scheduled to end this year unless Congress renews it. Efforts are underway to either do this through a provision added to the Continuing Resolution now being introduced in the House or to do this in a Lame Duck session after the November election. The Heritage Foundation has been a leader in the conservative opposition to this renewal. Why? Because this is a simple litmus test of the true conservative nature of our Republican elected officials. If the Republicans cannot get behind closing down the Ex-Im Bank, how will they tackle the more important issues such as repealing Obamacare, addressing border security, etc. This week’s Heritage Action Sentinel summary brings you up-to-date on this important Congressional action.
I think Mike Needham, and Chris Chocola (president of Club for Growth) summed it up well in this letter to Majority Leader Kevin McCarthy:
“If you can’t start with the Export-Import Bank, then how can Americans trust the Republican Party to tackle the big challenges our nation faces after six years of President Obama and his failed policies?”
This week House Republicans are considering whether or not to comply with President Obama’s request to attach an extension of the bank to the continuing resolution.
>> Urge Your Representative to Oppose the Ex-Im Extension
REMINDER: If you are on Twitter, a number of Sentinels are having a “Tweetfest” tonight and Tweeting from 5:30-6:30pm ET using the hashtag #EndExIm. If you need articles to Tweet (or more information on what a “Tweetfest” is), let me know.
Weekly Call Notes (9/8/14)
The House and Senate are back in session.
Export-Import Bank: Press reports indicate the House will consider a “clean” continuing resolution (CR) this week. President Obama has petitioned Congress to attach an extension of the Export-Import Bank to the CR. If the Republican-controlled House complies with the President’s request, the government funding bill would not be “clean.” Heritage Action opposes any reauthorization or extension of the Ex-Im Bank and will key vote accordingly.
On the political front, there are three recurring arguments—that Heritage Action rejects—for why an Ex-Im extension, folded into the CR, should be acceptable to conservatives:
The extension may include “wind down” language (only a possibility, as no bill text has yet been released).
Current law already provides for a “wind down,” as the bank’s charter specifically allows for “orderly liquidation” in the event that it is not reauthorized. The political class knows this, for if they were truly interested in ending the bank, they would simply allow its charter to lapse. Should this occur, Ex-Im may continue the operations necessary to manage its existing portfolio pending an orderly liquidation. Therefore, doing nothing is equal to a “wind down”. Moreover, the 2012 reauthorization was also presented as the beginning of an eventual wind down, and just two years later the beneficiaries of corporate welfare are back clamoring for a higher lending cap.
If the Democrats insist on an extension in order to fund the government, failure to pass it would place the GOP in a precarious position headed into the midterm elections.
Plenty of members oppose Ex-Im but remain afraid of blocking an extension that will look too much like partisan brinksmanship. Ex-Im is the poster child for cronyism and corporate welfare. Conservatives cannot shy away from opposing it in the national spotlight, and what’s more, they should not make the mistake of thinking such a stance will reflect unfavorably at the voting booths. Conservatives will not slide into national victory by way of passive silence—they must work to earn it.
Recently, the Obama Administration announced the President would not seek to expand his unlawful amnesty initiative in the immediate future. This is a program that remains wildly unpopular among Congressmen and constituents alike, and the President taking a step back is evidence that the Democrats, notwithstanding their bluster, could not risk the national spotlight being shined on their unpopular agenda as a result of their legislative brinksmanship. Ex-Im is another example of an area where conservatives can rebuff status-quo dominance and stand up for the citizens who elected them in the first place.
A short-term extension in the CR will “decouple” the need to reauthorize Ex-Im from the need to continue funding the government, allowing time to rally the necessary support to end the bank.
The “decouple” strategy is flawed in its own right. Nobody can know what the political landscape will look like under the new Congress, nor can conservatives be sure that the appetite to abolish cronyism is as strong as it is today. Moreover, simple inaction has the same effect of decoupling these measures. Failure to reauthorize the bank’s charter initiates an immediate wind-down of Ex-Im while the CR would guarantee short-term funding. Decoupling is not necessary to ensure the bank’s extinction.
Call to Action: A two year fight is culminating in this final standoff between true congressional conservatives and those members intent on pleasing special interests and the beneficiaries of corporate welfare. It is more important than ever for concerned citizens to apply pressure to their representatives and see the mission through to the end. Tell 5 or more people in your conservative network to write or call their Congressman and demand they #EndExIm for good.
Read more about the irrefutable facts of the crony institution here:
http://heritageaction.com/2014/09/ex-im-bank-just-facts/
Sentinel Summit: http://heritageaction.com/sentinelsummit./
You all are the very best,
Stephanie Kreuz
Midwest Regional Coordinator
Heritage Action for America
Cell: 202-258-4703
Twitter: @skreuz