The Trump administration has doubled its financial support for Argentina to $40 billion, Treasury Secretary Scott Bessent announced Wednesday, as the South American nation struggles with economic instability ahead of crucial midterm elections.
The package combines a $20 billion currency swap already in place with an additional $20 billion facility that commercial banks and international investment funds are assembling. The Treasury bought Argentine pesos on the open market twice this week, intervening directly to stabilize the currency.
Bessent framed the intervention as an “economic Monroe Doctrine,” asserting US influence over Latin America as China deepens its regional ties. Beijing currently operates an $18 billion swap line with Buenos Aires.
“It’s much better to use the heft of the US economic power rather than have to use military power,” Bessent told reporters, comparing the strategy to the administration’s military strikes on alleged drug trafficking vessels near Venezuela.
The aid package shores up Argentine President Javier Milei, a Trump ally, ahead of the October 26 midterm elections that will determine whether his libertarian reform agenda can continue. While Trump initially suggested aid depended on Milei’s electoral success, Bessent clarified Wednesday that support would continue as long as Argentina pursues what the administration considers “good policies.”
The bailout has drawn sharp criticism from Democrats during an ongoing government shutdown. Senator Elizabeth Warren called it “Argentina First” policy that prioritizes foreign interests over domestic needs, pointing to hedge funds that stand to benefit and citing Bessent’s relationships with Wall Street investors. The New York Times has reported that major investment funds, including BlackRock, Fidelity, and Pimco, as well as independent investors with ties to Bessent, would gain significantly from the aid package.
Related: Bessent Approves $20B Argentina Bailout Benefiting Hedge Fund Run by His Friend
American soybean farmers have expressed frustration after Argentina suspended export taxes on soybeans following the initial aid announcement, allowing China to purchase Argentine soybeans that would typically come from US suppliers.
Argentina is the International Monetary Fund’s largest debtor, having already received $40 billion in previous IMF loans plus a $20 billion IMF loan in April. The country has defaulted on its sovereign debt three times since 2000.
Eight senators — including six Democrats and two Independents who caucus with Democrats — have introduced the “No Argentina Bailout Act” to block the administration from using Treasury funds for the rescue package.
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