Chiding Congress on Ex-Im Bank's lapse, Obama warns US must not 'unilaterally disarm'
President Barack Obama, right, with Paul Sullivan, left, Vice President of International Business Development at Acrow Bridge, speaks during a meeting with small business owners to discuss the importance of the reauthorization of the Export-Import Bank in the Roosevelt Room of the White House in Washington, Wednesday, July 22, 2015. Obama is ramping up pressure on Congress to reauthorize the Export-Import Bank, the obscure federal agency's charter expired last month after lawmakers refused to reauthorize it. The bank underwrites loans to foreign companies purchasing American products, but conservatives call it corporate welfare. (AP Photo/Pablo Martinez Monsivais)
By JOSH LEDERMAN and ERICA WERNER, Associated Press
WASHINGTON (AP) — Chiding Congress in no uncertain terms, President Barack Obama warned Wednesday that American businesses are suffering while the Export-Import Bank lapses, and called on lawmakers to reauthorize the bank within days.
With Congress nearing its annual August recess, Obama said the U.S. "cannot leave these businesses hanging" by punting a vote to renew the bank until after Congress returns. He said it was a "shame" that the bank had been allowed to expire, and said the lapse puts the U.S. at a disadvantage because "every other advanced country has a program like this" to promote its exports.
"We cannot unilaterally disarm," Obama said during a meeting in the Roosevelt Room with small businesses affected by the bank's expiration. "Orders are on hold. Businesses are in danger. We need to get this done."
An obscure federal agency unknown to most Americans, the Export-Import Bank underwrites loans to foreign companies that are purchasing American products, which helps U.S. businesses successfully market their products overseas. Conservatives denounce it as corporate welfare, although Obama insisted that's not the case. He said the U.S. Treasury actually benefits because the government makes money from the bank.
The bank's charter expired June 30 for the first time in its 81-year history because of congressional inaction. With conservative opponents celebrating its demise, prospects to revive it are uncertain.
Supporters in the Senate are hoping to add it to must-pass highway legislation now being considered — and they have the votes to prevail — but the underlying highway legislation may run into trouble. The House has passed its own, shorter highway bill without the Export-Import Bank included, and House Republicans are opposed to the Senate bill.
The White House not only supports adding the bank's reauthorization to the bill, but "insists" it be added to the crucial highway legislation, White House spokesman Josh Earnest said Wednesday.
Complicating matters, Congress' legislative session is drawing near its close, so supporters face the prospect of running out of time to push the Export-Import Bank across the finish line before lawmakers leave Washington for their annual August recess.
"This should be a no-brainer," Obama said. In a jab at a controversial Republican presidential candidate, Obama said he feels strongly about the bank even though "I know it's not as interesting as some of the other issues and Donald Trump and all that."
The bank cannot currently make new loans or guarantees but remains in business to service billions in outstanding loans and guarantees. However, its funding runs out Sept. 30, so its outlook becomes even shakier if Congress does not act before then.
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Reach Josh Lederman on Twitter at http://twitter.com/joshledermanAP and Erica Werner at http://twitter.com/ericawerner
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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