CBO Deals Blow to Export-Import Bank
Washington – Today, the Congressional Budget Office (CBO) released a report on the estimated costs of selected federal credit programs, including the Export-Import Bank. The analysis found a $16 billion difference between the Federal Credit Reform Act of 1990 (FCRA) methodology and the fair-value approach, which accounts for the cost of risk. The CBO explains this “offers a more comprehensive estimate of federal costs.” According to the report, the Bank’s six largest programs would cost $2 billion on a fair-value basis over the next decade. Heritage Action released the following statement from chief executive officer Michael A. Needham:
The Congressional Budget Office debunked one of the main arguments deployed by proponents of the Export-Import Bank. Under fair-value rules, the Export-Import Bank is a cost to taxpayers. Today’s report makes clear those who wish to argue in favor of reauthorizing the Bank must do so on the grounds that market disruption, taxpayer risk and cronyism are laudable, not on the grounds of budgetary savings.