U.S. House votes to restore Export-Import Bank, but Senate may block it

The U.S. Export-Import Bank took a step closer to being restored Tuesday, after a coalition of House Republicans and Democrats voted in favour of renewing its charter.

The charter expired June 30, leaving the U.S. as one of the few trading nations in the world without a federal agency to back financing deals.

Like Canada's Export Development Corp., the bank helps overseas buyers get financing to purchase U.S. products, including airplanes, heavy equipment and power generators.

General Electric has led a campaign to restore funding for the Export-Import Bank, regularly announcing jobs it was having to move to overseas locations because it was getting export funding from other countries.

Among the announcements was the building of a new plant to make gas-powered engines in Canada, moving 350 jobs from the U.S., because it was able to tap export financing from EDC.

Corporate lobby

GE is among several U.S. companies who say they could lose out on international deals if they don't have trade financing.

The U.S. Chamber of Commerce and the National Association of Manufacturers also lobbied for return of the bank, highlighting the help it provides to small businesses.

The U.S. House supported the bank 313 to 118, overruling prominent Republicans such as Majority Leader Kevin McCarthy, Whip Steve Scalise of Louisiana and Financial Services Committee Chairman Jeb Hensarling.

Republicans have seen the elimination of the Export-Import Bank as an opportunity to eliminate a major government program, saying it only helps big corporations.

"I think there are plenty of other ways to expand opportunity in this country, and corporate welfare is not one of them," said Paul Ryan, a Republican who is soon to take the role of House speaker.

For the bank to survive, it will have get support in the Republican-held Senate, where Senate Majority Leader Mitch McConnell opposes the bank.

McConnell could block efforts to bring the House measure to a vote.