The U.S. Congress broke for its July 4th holiday recess without voting to renew the charter of the Export-Import Bank, handing an initial victory to conservative members who oppose the export credit agency. The bank’s charter was set to expire at midnight on June 30; however, the agency will continue operating and managing its existing loan commitments.

An independent federal agency, the Ex-Im Bank provides loan guarantees and other financing support to facilitate the export of U.S. products to foreign buyers. It faces determined opposition from some conservative politicians, who believe that it distorts commercial markets in favor of large and politically connected corporations such as Boeing. Last year, Boeing accounted for about 25 percent of exports the bank supported, CEO Fred Hochberg recently told Politico. Aircraft and avionics represented 29 percent of the $27.5 billion in U.S. exports the bank supported in Fiscal Year 2014, according to the bank.

“Ex-Im is a part of yesterday’s economy,” stated Texas Rep. Jeb Hensarling, chairman of the House Financial Services Committee and a leading opponent of the agency. The expiration of the bank’s charter “is a small step toward renewing a competitive free-market economy and arresting the rise of the progressive welfare state and the cronyism connected to it…There’s no doubt some U.S. companies receive a benefit from Ex-Im, but there’s also no doubt Ex-Im hurts other companies and their workers,” he added. “In fact, more are hurt than helped, and nearly 99 percent of all U.S. exports are financed without Ex-Im.”

The expiration of the bank’s charter means that it cannot support new loans, but it will continue to manage some $112 billion in outstanding loans. The agency “will begin a gradual and orderly wind-down and—by law—financing awarded before expiration will continue through the life of the loans, loan guarantees and insurance policies,” Hensarling said. “In fact, some of this financing will extend for 12 to 18 years after Ex-Im’s charter expires.”

Despite the lapse in its charter, the agency remains funded for the remainder of the federal fiscal year, said an Ex-Im Bank spokesman. “Even though our authorization expires tonight, our appropriation for our funding is through September 30, so we’re funded through the end of the fiscal year, which means no layoffs,” the spokesman told AIN. “Everyone will continue to come to work, and we will service all of our obligations and manage our portfolio to maturity.”

The expectation is that bank proponents will push for new legislation to renew or “reauthorize” the agency once the Congress returns from its recess in early July. A majority in the Senate support the Ex-Im Bank. On June 10, 65 senators voted for an amendment to the defense authorization bill that would have extended its charter, while 31 senators were opposed. However, the amendment’s sponsors—Republican senators Kelly Ayotte of New Hampshire and Mark Kirk of Illinois—intended the vote as a test of the chamber’s support, and thereafter withdrew the amendment because it would have complicated the defense legislation. Support for the bank in the House, which is heavily influenced by its conservative “tea party” wing, is less assured.

“We enjoy support in both chambers,” the Ex-Im Bank spokesman said when asked about its future prospects. “The Senate voted overwhelmingly to support the Ex-Im Bank a couple of weeks ago, and we have bipartisan support in the House as well. So I expect that they will arrive at a favorable outcome in the month of July.”