House Majority Leader Kevin McCarthy, R-Calif., tells The Daily Signal that it’s time to “wind down” the Export-Import Bank.
“This is a place the speaker [John Boehner] and I disagree upon,” McCarthy says. “I think this is an opportunity to wind down the bank because I think private sector can fill that void.”
The Export-Important Bank is shaping up to be a divisive issue on Capitol Hill. Congress has until June 30 to decide whether they will reauthorize the bank or not. So far, 89 lawmakers, including McCarthy, have publicly stated their opposition.
President Franklin Roosevelt created the bank more than 80 years ago as a way to promote the sale of American exports. The idea was to provide financing to cash-strapped foreign countries during the global Depression.
Today, both Republican and Democratic lawmakers say it has turned into a corporate welfare system, in which big corporations get unnecessary subsidies paid for with taxpayer dollars. Recent congressional investigations show that the bank has been hampered by inefficiency, fraud and government waste.
The bank’s supporters include the U.S. Chamber of Commerce, which this week launched an advertising campaign, hoping to convince lawmakers in both parties to support reauthorization.
>>> The Debate Over the Export-Import Bank, Explained in 90 Seconds
This article was updated.