McCarthy Backs Commercial Space But Opposes Ex-Im Bank Re-authorization

Rep. Kevin McCarthy

Jeff Foust has an interesting analysis about efforts by Rep. Kevin McCarthy (R-Calif.) to prevent the re-authorization of the Export-Import (Ex-Im) Bank of the United States, which has helped to finance the exports of a number of commercial space companies.

Although McCarthy has introduced legislation to streamline commercial spaceflight regulations for commercial spaceflight companies that have yet to fly any passengers, he views government-backed financing of exports that has helped profitable space companies as unnecessary.

In an interview on “Fox News Sunday,” McCarthy said he would vote against reauthorization of Export-Import (Ex-Im) Bank of the United States, which supports financing of exports of products and services created by U.S. companies.

“One of the problems with government is it’s going to take hard-earned money so others do things that the private sector can do. That’s what Ex-Im Bank does,” McCarthy said when host Chris Wallace asked him about the upcoming reauthorization of the bank. “I think Ex-Im Bank is one that government does not have to be involved in. The private sector can do it.” Asked directly by Wallace if he would vote against its reauthorization, McCarthy said, “Yes.”

The Ex-Im Bank has been increasingly used by domestic satellite manufacturers and launch services providers in recent years to provide favorable financing terms for the sale of commercial satellites and launches. For example, in 2012 it backed financing of satellites built by Boeing, Lockheed Martin and Orbital Sciences to customers in Australia and Mexico. Later that year, it financed the sale of satellites built by Boeing and Space Systems/Loral to a Hong Kong-based company; the deal also covered the launch of two of those satellites on a Space Exploration Technologies Corp. Falcon 9 rocket.

The re-authorization of the bank is supported by the Aerospace Industries Association (AIA), which says the bank has helped level the playing field for aerospace companies.

McCarthy, who was recently elevated to House Minority Leader, represents a district that includes the Mojave Air and Space Port. This explains his decision to introduce the measure designed to streamline regulations on reusable space vehicles.