Senators quash Trump’s pick to run struggling Export-Import bank
The U.S. Export-Import Bank provides loans, insurance and guarantees to help foreign buyers purchase U.S. exports. It has since 2015 lacked the required number of board members to approve large transactions
WASHINGTON—A GOP-controlled Senate panel rebuffed President Donald Trump on Dec. 19, killing the nomination of his controversial pick to run the Export-Import Bank.
Two Banking Committee Republicans, Tim Scott of South Carolina and Mike Rounds of South Dakota, joined with Democrats to shelve the nomination of former GOP Rep. Scott Garrett of New Jersey to head up the bank, which provides loans, credit insurance and loan guarantees to help foreign buyers purchase U.S. exports.
It has many GOP critics who say it distorts markets and that too much of its help benefits large corporations like Boeing. Some U.S. businesses, including airlines, say the bank effectively subsidizes foreign competitors.
But the bank has significant bipartisan support in Congress, including backing from the GOP’s establishment wing, as well as outside Republican allies such as the U.S. Chamber of Commerce.
“We need to both reform the Export-Import Bank and ensure it continues to function as an important tool for American businesses large and small,” said Scott, whose state is home to a huge Boeing plant. “Given Mr. Garrett’s long history opposing the Ex-Im Bank, I believe it would be hard for him to accomplish both of those goals.”
Garrett voted to shutter the bank when serving in Congress and didn’t apologize for his opposition when testifying at his confirmation hearing. The bank has been languishing since 2015 without the quorum of board members required to approve larger transactions.
“We are disappointed that the Senate Banking Committee missed this opportunity to get the Export Import Bank fully functioning again. We will continue to work with the Committee on a path forward,” said Marc Short, the White House’s director of legislative affairs.
“To put it plainly, we have lost American jobs because of the games that have been played with the Export-Import Bank,” said top Banking panel Democrat Sherrod Brown of Ohio. “Our manufacturers and their employees don’t have a level playing field when competing for overseas business … American jobs have been lost as deals stall and U.S. manufacturers consider moving their production abroad.
The panel approved several other nominees to the Ex-Im board, however.