The House today rejected an amendment that would have prohibited the Export-Import Bank from providing loans, loan guarantees, and credit to state sponsors of terrorism such as Iran.
Rep. Ed Royce, R-Calif., chairman of the Foreign Affairs Committee, introduced the amendment amid concerns that President Barack Obama would issue waivers to state sponsors of terrorism that would allow them to receive taxpayer-backed subsidies from the government bank.
Republicans, however, helped Democrats defeat the amendment, 244-183.
“Some parts of U.S. law, most notably in the Foreign Assistance Act, does prevent Ex-Im from engaging with state sponsors of terrorism,” Royce said on the House floor. “But these commonsense prohibitions are subject to presidential waivers, and we have seen the president abuse waivers to pursue his agenda over and over again on Iran.”
Royce called on Congress to close the “loophole” that would allow the president to make such exceptions.
“I think we can all agree, Ex-Im supporters and opponents alike, that Iran should not be entitled to American taxpayer-financed aircraft deals,” Royce said.
The measure went down with 181 Democrats and 63 Republicans voting against it.
Congress allowed the charter of the Ex-Im Bank to expire in June, citing examples of cronyism, but efforts are afoot among lawmakers to revive the government bank.
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