A bill to prohibit the Export-Import Bank of the United States from providing financing to persons with seriously delinquent tax debt.
- Bill Number
- S. 4308
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2026-04-15: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-04-30T12:20:29Z
AI-Generated Summary
Purpose
This bill aims to prevent the Export-Import Bank of the United States (EXIM Bank) from providing loans, guarantees, or other financing to individuals or entities with seriously delinquent tax debt (unpaid federal taxes that the government can collect through forced seizures or court action). It ensures that federal export financing supports only those who comply with tax obligations.
Key Provisions
- Prohibition: EXIM Bank cannot finance any person with seriously delinquent tax debt, nor any project where a participant has such debt.
- How Debt is Checked:
- Uses data from the System for Award Management (SAM) website (a federal database for vetting contractors and recipients).
- Employs data analytics.
- Consults with the IRS Commissioner.
- Waiver Option: The U.S. President can override the prohibition if there are "urgent and compelling circumstances" harming U.S. interests. The President must notify the Senate Banking Committee and House Financial Services Committee within 30 days, explaining the decision.
- Definition of Seriously Delinquent Tax Debt:
- An assessed federal tax liability collectible by IRS levy (seizure of assets) or court.
- Excludes:
- Debts paid on time under IRS installment agreements.
- Debts with pending appeals, hearings, or relief requests.
- Debts under ongoing IRS levies.
- Debts where levies have been released.
Significant Changes to Existing Law
- Amends Section 2 of the Export-Import Bank Act of 1945 by adding a new subsection (m).
- Introduces the first explicit tax delinquency check for EXIM Bank financing, linking it to IRS data and SAM.
Potential Impacts
- Government Agencies: EXIM Bank must implement new screening processes, increasing administrative workload. IRS provides consultation, potentially streamlining tax enforcement.
- Citizens/Businesses: U.S. exporters or project participants with unpaid taxes lose access to EXIM financing, possibly hindering export deals. Compliant businesses face no change.
- International Relations: Could slow or block financing for foreign projects involving U.S. exporters, affecting trade competitiveness if waivers are rare.
Main Stakeholders Affected
- EXIM Bank: Must enforce the rule and handle waivers indirectly.
- Tax Delinquents: Individuals/companies owing serious IRS debts, blocked from financing.
- U.S. Exporters and Projects: Rely on EXIM for competitive loans/guarantees.
- IRS and Treasury: Gain indirect leverage via data sharing.
- President and Congress: President gains waiver authority; committees receive oversight reports.
- U.S. Taxpayers: Potential benefit from reduced federal support to tax evaders.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens tax enforcement by tying federal benefits to compliance; waivers provide flexibility without full exemption.
- Constitutional: Aligns with Congress's spending power and no clear due process issues (exclusions protect those in good-faith repayment).
- Political: Promotes fiscal responsibility; may spark debate on burdens for small exporters vs. deterring tax avoidance. Oversight reports ensure transparency.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-04-15: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-04-15: Introduced in Senate
Bill Versions
- To prohibit the Export-Import Bank of the United States from providing financing to persons with seriously delinquent tax debt. — issued 2026-04-15 — PDF (4 pages)