Ex-Im Is One Of The Few Government Programs That Helps Reduce The Deficit
Now that the United States has surpassed the debt ceiling, it’s a good time to review the role government programs play in adding to – or reducing – the country’s deficit.
Many important federal programs cost billions of dollars each month due to the nature of their work – it costs money to equip our military or build new roads and bridges. Some programs cost money because they include wasteful spending that should be cut. But a minority of programs actually make money for the government and help reduce the nation’s debts and deficit. The Export-Import Bank is one of them.
That’s why it’s confusing to hear a misguided minority in Congress call for ending the Ex-Im Bank while also claiming to support reducing our deficit.
Here are some facts:
- Ex-Im covers its own operating expenses and contributes to a loan-loss reserve fund by charging fees and interests for its services.
- On top of covering its own costs, Ex-Im Bank sent $675 million to the Treasury last year. That helped reduce the U.S. deficit by $675 million.
- Over the last two decades, the Bank has sent to the Treasury more than $7 billion.
In a discussion about managing the deficit, opposing Ex-Im is about as out of touch as one can get.
U.S. taxpayers can’t afford for lawmakers to miss this important point. To learn more about how Ex-Im reduces the deficit while minimizing risk, check out the Coalition’s recent report: “Is Ex-Im A Risk To Taxpayers?”