WASHINGTON (July 1, 2015) – The R Street Institute welcomed last night’s expiration of statutory authority for the Export-Import Bank, halting the bank’s ability to make new loans.

Created in 1934 to be the official export credit agency of the United States, the Export-Import Bank is a relic of the New Deal. For decades, it routinely has been reauthorized on grounds that it levels the playing field for small business, when it primarily funnels money to some of the largest corporations.

“By guaranteeing taxpayer-backed loans, the bank can provide financing below market value, a prime example of corporate welfare that puts politically connected businesses at an advantage,” said Nathan Leamer, outreach manager at the R Street Institute. “Government should not be in the business of picking winners and losers in the economy.”

Leamer warned that some of the bank’s supporters have pushed Congress to reauthorize Ex-Im by attaching language to the forthcoming federal highway bill or other unrelated legislation.

“We urge Congress to work on fostering economic growth for all Americans, and letting this symbol of crony capitalism stay relegated to the past,” said Leamer.


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