Senator John Kennedy, a member of the Senate Banking Committee, announced on Apr. 15 that he has reintroduced legislation aimed at preventing the U.S. Export-Import (EXIM) Bank from providing loans to companies and individuals who are behind on their federal tax payments.
The bill is intended to address concerns about government lending practices and ensure taxpayer money is not used to support businesses that have outstanding federal debts. Kennedy said, “It makes no sense for the government to lend hard-earned money to businesses that fail to even repay their tax debt. My bill would help root out waste, fraud and abuse, and make sure our Export-Import Bank isn’t subsidizing companies that don’t play by the rules.”
Currently, EXIM Bank applicants must self-certify they do not owe delinquent federal debt. However, a Government Accountability Office analysis found billions of dollars in transactions involving companies that may have misrepresented their status between 2014 and 2016. According to this review, System for Award Management data flagged 32 U.S.-based companies as having delinquent federal debt during months when they received EXIM authorizations totaling $1.7 billion.
Based on these findings, both the Government Accountability Office and EXIM Bank agreed that more robust verification methods should be used rather than relying solely on self-certification by applicants. Kennedy’s proposal would allow EXIM Bank access to SAM data and require collaboration with the Internal Revenue Service for confirmation before granting financing.
Under this legislation, once delinquency is confirmed through available data sources and IRS consultation, affected entities would lose access to future EXIM financing unless waived by presidential authority if deemed in national interest. The bill also clarifies that debts being repaid on time are not considered seriously delinquent.
Kennedy holds top Republican positions on subcommittees related to energy policy and economic development according to his official website. He serves as an adjunct professor and substitute teacher according to his official website, contributes scholarly work in constitutional law according to his official website, served as executive editor of the Virginia Law Review according to his official website, earned degrees from Vanderbilt University, Oxford University, and University of Virginia School of Law according to his official website, ran on a platform focused on policies benefiting constituents according to his official website, and sits on Senate committees for appropriations, banking, budget, and judiciary according to his official website.
