WASHINGTON — Conservatives cheered the demise of the federal Export-Import Bank on Tuesday and vowed to beat back efforts to revive it, even as business leaders issued dire warnings that letting the agency expire at midnight would hurt U.S. competitiveness globally.
“Ding Dong, the Ex-Im Bank is dead!” said FreedomWorks, one of the outside groups responsible for transforming the bank from an obscure government lending institution into a conservative rallying cry.
“This is a critical blow to manufacturers,” countered Aric Newhouse, a senior vice president at the National Association of Manufacturers, arguing that the bank plays a necessary role in underwriting loans to help foreign customers purchase U.S. goods.
The charter of the 81-year-old government agency was set to expire at midnight Tuesday, and with the House and Senate on recess for the July 4 holiday, there was no chance of a last-minute reprieve.
Although the Export-Import Bank was unable to make new loans as of midnight, it will stay in business for the time being to service more than $100 billion in outstanding loans and guarantees.
Supporters plan to revive the bank in the coming weeks by attaching it to must-pass legislation to extend the highway trust fund.
Senate Majority Leader Mitch McConnell, R-Ky., told The Associated Press this week that supporters of the bank have the votes to pass it . Whether it could then get through the House is less certain.
Under pressure from Tea Party-backed conservatives, GOP congressional leaders have lined up against the bank.
That’s led to bitter grumbling from some business leaders. Two business officials on a conference call Tuesday organized by the Exporters for Ex-Im Coalition, a group backed by the National Association of Manufacturers and others, attacked House Majority Leader Kevin McCarthy, R-Calif.
One of them, Don Nelson, president of California-based ProGauge Technologies, said he had met with McCarthy to explain that his company will have to stop exporting if the bank is dissolved.
“Truth be told, he has zero experience or knowledge on the topic, and yet he and other misguided congressmen portray they’re experts on this topic and say the private sector can take over,” Nelson said.
