Posted on

Garrett votes to ensure U.S. banks never finance airplane sales to Iran


July 15,2016

the staff of the Ridgewood blog

WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, today voted for three pieces of legislation before the Financial Services Committee to stop the sale of U.S. aircrafts to Iran from entities like Boeing.

“It’s crazy for the Obama Administration to allow U.S. companies to sell airplanes to the largest state sponsor of terror in the world, Iran, and it’s even crazier to allow the U.S. financial system to finance these transactions or use taxpayer dollars to back these deals,” said Garrett. “Since the president is willing to put the needs of Iran before our national security, and entities such as Boeing and the Export-Import Bank are more concerned about profits than stopping terrorists, Congress must put an immediate stop to this dangerous idea. The legislation before the Financial Services Committee today will ensure that taxpayer money and the U.S. financial system is never used to assist an Iranian regime that wants to destroy the United States and its allies.”

Legislation before the committee:

H.R. 5729, Prohibits the Secretary of the Treasury from licensing the export of commercial aircraft to Iran.
H.R. 5711, Prohibits the Secretary of the Treasury from authorizing transactions by U.S. financial institutions in connection with these sales.
H.R. 5715, Ensures that no taxpayer dollars will back these sales in the form of Ex-Im financing by codifying and strengthening a current prohibition on Ex-Im support for Iran contained in annual appropriations language and closing a loophole that could allow for indirect Ex-Im financing of aircraft deals with Iran through third-party leasing companies.


By authorizing aircraft sales to the ayatollahs, the Obama Administration would materially aid what its own State Department calls the world’s foremost state sponsor of terrorism. Just last month, Iran Air flew “known weapons resupply routes to Syria” three times. This is the very airline President Obama wants to receive new Boeing airplanes. Additionally, neither the Treasury Department nor Boeing has provided assurances that Iran Air will not transfer planes to other airlines.

Under current law, Ex-Im may indirectly finance planes being exported to Iran, particularly by providing support to aircraft leasing companies. This is a loophole that Congress must close. When selling the nuclear deal, the Obama Administration has explicitly stated that Iran will not have access to the U.S. financial system. Any authorization of U.S. financing for aircraft exports would show that the Administration has been misleading the public.

Garrett has been an outspoken critic of the Ex-Im bank and the Iran nuclear deal.