LEGISLATION will be introduced in the US today authorising $70bn in additional funding for the Export-Import Bank over the next decade, as the agency takes on a central role in supporting energy and minerals projects, said the Financial Times.
Republican senator Kevin Cramer of North Dakota, co-sponsoring the bill with Democrat Mark Warner, told the newspaper that President Donald Trump was “all in” on the funding. Trump “sees the value” of the institution, Cramer said.
The proposal would raise Ex-Im’s lending ceiling from $135bn to $205bn as the Trump administration seeks to reduce American dependence on China for rare earths and critical minerals. Beijing imposed export controls on several important rare earths last year amid escalating trade tensions.
Without reauthorisation, Ex-Im funding lapses at year-end. The agency finances American businesses competing for overseas sales when private sector loans are unavailable.
The bill requires approval from both the House of Representatives and Senate before Trump can sign it into law, said the Financial Times.
Cramer argued the bank helps “foreign buyers of American products” and would reduce the trade deficit by supporting exporters. “To balance trade, obviously people need to buy more stuff from us,” he said.
He added that Ex-Im financing could facilitate trade agreements, providing a “carrot” to partners whilst Trump “wields” tariffs as a “stick”.
Military sales, pharmaceuticals, food, energy and critical minerals could benefit from enhanced Ex-Im support, Cramer said.
Last reauthorised in 2019, the agency faces criticism from both parties over taxpayer funding for corporations. Progressive Democrats have raised climate and human rights concerns about Ex-Im investments.
