
U.S. Treasury Secretary Scott Bessent announced Wednesday that the Trump administration will double its financial assistance package for Argentina to approximately $40 billion, up from the previously promised $20 billion. The expanded bailout aims to stabilize Argentina’s fragile economy and shore up President Javier Milei’s government ahead of Argentina’s midterm elections on October 26.
According to Bessent, the new package includes an additional $20 billion in private financing from major U.S. and international banks, as well as sovereign wealth funds, supplementing the original $20 billion in direct U.S. government support. The funding is designed to support Argentina’s peso, reduce sovereign debt volatility, and reinforce Buenos Aires’ economic credibility as Milei’s sweeping libertarian reforms struggle to take hold.
The announcement follows Milei’s visit to Washington on Tuesday, where he met with President Donald Trump at the White House. The meeting, also attended by Vice President JD Vance, Chief of Staff Susie Wiles, and Treasury Secretary Scott Bessent, underscored the close personal and ideological ties between the two leaders. Trump publicly hailed Milei as his “favorite president,” an extraordinary statement by a sitting U.S. president in support of a foreign head of state.
The administration’s growing financial commitment to Buenos Aires has sparked criticism in Washington. Democrats condemned the decision amid the ongoing U.S. government shutdown, while several Republican lawmakers accused Trump of abandoning his “America First” principles by funding what they described as a foreign economic experiment.
Milei’s supporters within the MAGA movement have praised him as a crusader against socialism and government bloat, but results in Argentina have been mixed. Inflation remains stubbornly high, and Milei’s “chainsaw” economic reforms—intended to slash spending and deregulate markets—have so far delivered limited relief.
Despite his alignment with Washington, Milei has occasionally defied expectations. Last month, even as Argentina received its first tranche of U.S. aid, Milei signed a major soybean export agreement with China, signaling Buenos Aires’ continued willingness to maintain pragmatic economic ties with Beijing.