I don't think giving government-guaranteed loans is the right thing to do. The loan measure was the first of several steel-related bills to reach the Senate floor. The full Senate is expected to consider on Tuesday a bill that would establish comprehensive quotas on foreign steel shipments. The steel industry has sought relief from low-priced imports that reached record levels in 1998 because of the Asian economic crisis. By doing so, they guaranteed that lawmakers would have to cut other programs before they could pay for the loans.
Supporters have targeted cuts in administrative travel expenses to pay for the loans.
Still, some critics were not swayed. Senators also agreed to other changes aimed at removing politics from the loan-approval process and requiring private lenders to share in at least 15 percent of the risk. Supporters said the loans would help domestic steel producers unable to compete with low-priced imports and U.S. oil and natural gas industries struggling because of sagging prices. Officials say the three industries have suffered tens of thousands of layoffs. As part of the agreement, supporters dropped provisions setting minimum loan amounts.