Report: US senator proposes $70 billion funding increase to support Trump's critical minerals agenda

Report: US senator proposes $70 billion funding increase to support Trump's critical minerals agenda

According to media reports on the 4th, bipartisan US senators plan to propose legislation on Wednesday to raise the US Export-Import Bank’s loan cap by $70 billion to $205 billion and extend its authorization by ten years, aiming to fully support US President Donald Trump’s strategic agenda in key mineral sectors by expanding financing capacity.

The proposal is jointly initiated by Republican Senator Kevin Cramer and Democratic Senator Mark Warner, coinciding with the Trump administration's acceleration of supply chain restructuring. Kevin Cramer revealed to the media that Trump is “fully committed” to funding the institution and recognizes its value on the commercial front. This legislative effort closely echoes the White House’s “Project Vault” initiative launched this week, which aims to use Export-Import Bank financing to establish commercial stockpiles of critical minerals.

Buoyed by this favorable policy, market expectations for related sectors have surged, with government capital injection predicted to directly boost the domestic minerals supply chain. In pre-market trading after the news was released, US rare earth stocks generally rose, with American Rare Earths up 17.46% before gains narrowed; US Antimony rose 5.3%, and both Critical Metals and MP Materials also logged significant increases.

This move marks a significant shift in US industrial policy—strengthening the resilience of domestic manufacturing supply chains through policy-oriented financial tools. Analysts note that without new legislative authorization, the Export-Import Bank’s funding will expire at the end of this year. Against the backdrop of increasingly complex global trade circumstances, the institution is viewed as a key tool for boosting US export competitiveness, balancing trade deficits, and ensuring strategic resource security.

Expanding Financing and Policy Shift

Under the proposed legislation, lawmakers seek to raise the Export-Import Bank’s loan cap dramatically from the current $135 billion to $205 billion. Kevin Cramer pointed out that without reauthorization and increased funding, the US would be at a disadvantage compared to other developed countries.

He emphasized that this is not just about trade balance, but rather “adding another tool to our toolbox.” By providing preferential financing terms, it will help US exporters secure overseas orders and turn transactions that were previously “unfeasible” into “feasible” ones.

Trump’s attitude toward the institution has undergone a significant shift. He criticized the Export-Import Bank as “unnecessary” during his 2016 campaign, but supported its reauthorization in 2019. According to Cramer, Trump uses tariffs as the “stick”, while Export-Import Bank financing provides the “carrot” in making trade deals. The president, with his sharp business acumen, now deeply appreciates the institution’s practical role in facilitating deals and balancing trade.

Commercial Stockpile Plan and Corporate Participation

According to a previous Wallstreetcn article, the Trump administration launched the “Project Vault” strategic reserve plan on Monday. The plan totals $12 billion, including $10 billion in debt financing from the Export-Import Bank and $1.67 billion in private capital. The initiative aims to establish the US private sector’s first commercial stockpile of critical minerals, covering gallium, cobalt, and other raw materials crucial for automotive, technology, and aerospace manufacturing.

Currently, more than a dozen industry giants including General Motors (GM), Google's parent Alphabet, and Boeing have joined the plan. In terms of operations, commodity traders such as Hartree Partners LP, Traxys North America LLC, and Macquarie Energy Group are responsible for procurement, while manufacturers pay upfront fees and bear holding costs. The mechanism is designed with market stabilizer functions; participating companies can draw from the stockpile during supply disruptions but must commit to repurchasing the same quantity in the future to smooth price fluctuations.

Supply Chain Security and Trade Balance

The core logic behind this legislation and capital injection is to address global supply chain vulnerability. Kevin Cramer pointed out that beyond military sales, pharmaceuticals, and food, energy and key minerals are areas where the Export-Import Bank can play a critical role. By supporting domestic and allied projects, the US aims to reduce reliance on single foreign suppliers—especially after some key rare earths faced export controls last year, making this need even more urgent.

Previously, the Export-Import Bank announced $10 billion in financing dedicated to building domestic raw material stockpiles for downstream industries such as auto manufacturing. This move is intended not only to hedge against asset-liability shocks like the post-Russia-Ukraine conflict nickel price surge but also to fundamentally reshape the global minerals and battery supply chain landscape, ensuring the US industrial base has adequate buffers against external shocks.

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