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Budgetary Impact of Reauthorizing the Export-Import Bank 1 (July 24, 2015)

handle is hein.congrec/cbo2413 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE Keith Hall, Director U.S. Congress Washington, DC 20515 July 24, 2015 Honorable Mike Enzi Chairman Committee on the Budget United States Senate Washington, DC 20510 Re: The Budgetary Impact ofReauthorizing the Export-Import Bank Dear Mr. Chairman: As you requested, and pursuant to section 3105 of S. Con. Res 11, the Concurrent Resolution on the Budget for Fiscal Year 2016, the Congressional Budget Office is providing two estimates of the costs of reauthorizing the Export-Import Bank through 2019 under Senate amendment number 2327, the Export-Import Bank Reform and Reauthorization Act of 2015. One estimate is based on procedures currently used in the federal budget as prescribed by the Federal Credit Reform Act of 1990 (FCRA). The other estimate is based on the market value of the federal government's obligations, often termed a fair-value estimate. Estimate on a FCRA Basis On a FCRA basis, CBO estimates that reauthorizing the Export-Import Bank beginning on October 1, 2015, would reduce spending subject to appropriation by $2.3 billion over the 2016-2020 period, assuming annual appropriation action consistent with such a reauthorization. That estimate reflects the bank's recent experience; it comprises the budgetary effect of new loans and guarantees issued by the bank (a reduction in discretionary spending totaling $2.6 billion over the 2016-2020 period) and additional administrative costs associated with those new commitments (totaling $0.3 billion over that same period). If the bank is reauthorized before the end of fiscal year 2015, the budgetary effects from any new loans or loan guarantees made during the remainder of 2015 would be treated as direct spending because they would occur as a direct result of this legislation. Assuming the amendment is enacted by early August 2015, CBO estimates that direct spending would decline by $30 million in 2015.