Bill Details
View committees (1)
View cosponsors (1)
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would change how the Export-Import Bank of the United States counts certain loans and financing when it decides whether it has reached its lending limit. In simple terms, it would keep some financing from being treated as a default for this calculation if that financing helps replace or compete with products or services from certain Chinese companies or from people and companies under U.S. sanctions. The goal is to make it easier for the bank to support U.S. exports that compete with China, without those deals hurting the bank’s lending cap in the same way as other defaults.
- It changes the rules under the Export-Import Bank Act of 1945 for figuring out the bank’s default rate, which helps determine when its lending cap applies.
- The excluded financing would include support for projects that help replace or compete with products or services from companies on the Commerce Department’s Entity List.
- It would also cover financing tied to people or companies on the Treasury Department’s sanctions list, including businesses that are partly owned by sanctioned parties.
- Financing made under the bank’s Program on China and Transformational Exports would also be left out of this default-rate calculation.
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]
[S. 753 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 753
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 SENATE OF THE UNITED STATES
February 26, 2025
Ms. Cortez Masto (for herself and Mr. Rounds) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
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).''.
<all>