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This bill would change how the Export-Import Bank counts certain loans and financing when deciding whether it has reached its lending limit. In simple terms, some financing aimed at helping U.S. companies compete with or replace products and services from certain foreign companies, especially those tied to China or sanctioned entities, would not count as a default against the Bank. The goal is to give the Bank more room to support U.S. exports and strengthen competition with China.
- It changes the rules for calculating the Bank’s default rate, which is used when deciding whether the Bank has reached its lending cap.
- Financing would be left out of that calculation if it helps replace or compete with a product or service from a company on the Commerce Department’s Entity List or from a sanctioned person or company under Treasury rules.
- It also excludes financing provided under the Export-Import Bank’s China and Transformational Exports program.
- The bill’s short title is the “Strengthening Exports Against China Act.”
Official Summaries
Strengthening Exports Against China Act
This bill allows the Export-Import Bank of the United States (EXIM) to exclude financing provided to certain U.S. exporters from its default rate cap calculations.
EXIM, the official export credit agency of the United States, provides financing for U.S. exports of goods and services. EXIM monitors credit and other transaction risks, reserves against losses, and submits quarterly reports to Congress on its default rate. If its default rate reaches 2%, EXIM faces an immediate lending cap freeze.
This bill exempts certain transactions from EXIM's default rate calculation, thereby allowing EXIM to provide financing to these U.S. exporters without the risk of reaching the default rate cap.
Specifically, the bill allows EXIM to exclude from the default rate cap any financing provided to U.S. exporters under the China and Transformational Exports Program. (This program allows EXIM to extend loans, guarantees, and insurance to advance the comparative leadership of the United States with respect to China in specified export areas, such as artificial intelligence, biotechnology, and wireless communications equipment.)
Additionally, the bill allows EXIM to exclude from the default rate cap any financing provided to U.S. exporters that are competing with products or services provided by (1) a foreign entity included on the Entity List maintained by the Department of Commerce's Bureau of Industry and Security (e.g., entities involved in activities contrary to U.S. national security or foreign policy interests), or (2) a foreign individual or entity sanctioned by the Department of the Treasury's Office of Foreign Assets Control.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1615 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1615
To amend the Export-Import Bank Act of 1945 to exclude certain
financing from the calculation of the default rate for purposes of
determining when the lending cap under such Act applies, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 26, 2025
Mrs. Kim (for herself and Mrs. Beatty) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Export-Import Bank Act of 1945 to exclude certain
financing from the calculation of the default rate for purposes of
determining when the lending cap under such Act applies, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strengthening Exports Against China
Act''.
SEC. 2. EXCLUSION OF CERTAIN FINANCING.
Section 6(a)(3) of the Export-Import Bank Act of 1945 (12 U.S.C.
635e(a)(3)) is amended--
(1) by striking ``If'' and inserting the following:
``(A) In general.--If''; and
(2) by adding at the end the following:
``(B) Exclusion of certain financing.--For purposes
of this paragraph, the rate calculated under section
8(g)(1) shall not include an entity in default if the
Bank determines that the financing provided to the
entity--
``(i) facilitates the replacement of or
competition with a product or service provided
by--
``(I) an entity on the Entity List
maintained by the Bureau of Industry
and Security of the Department of
Commerce and set forth in Supplement
No. 4 to part 744 of title 15, Code of
Federal Regulations; or
``(II) a person--
``(aa) on the list of
specially designated nationals
and blocked persons maintained
by the Office of Foreign Assets
Control of the Department of
the Treasury; or
``(bb) with respect to
which one or more persons
described in item (aa),
individually or in the
aggregate, directly or
indirectly, hold at least 50
percent of the outstanding
voting interest; or
``(ii) was provided pursuant to the Program
on China and Transformational Exports
established under section 2(l).''.
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