Trump’s $20b Argentina Aid Triggers GOP Backlash

By Staff, Agencies

US Treasury Secretary Scott Bessent is facing increasing pressure to justify Washington’s multibillion-dollar financial aid to Argentina, as political opposition mounts over the Trump administration’s support for President Javier Milei.

The US Treasury Secretary is leading efforts to stabilize Argentina’s economy and currency through an extensive rescue package that has drawn criticism across party lines.

The package includes a $20 billion swap agreement with the Argentine central bank and ongoing talks with private banks to arrange an additional $20 billion loan. The US has also intervened in currency markets to bolster the Argentine peso.

In a post on X, Bessent defended the move, saying Milei has worked to reverse “irresponsible economic policies” and stressed that “a strong, stable Argentina... is explicitly in the strategic interest of the United States.”

The administration views Milei’s libertarian government as a key ally in Latin America. However, critics argue the Argentina bailout is politically motivated, especially with midterm elections scheduled in the country this Sunday.

The Argentina bailout has sparked backlash from Trump’s base, with MAGA figures and Republicans from farm states questioning its scale and purpose.

“The administration will have difficulty explaining how ‘Argentina first’ is ‘America first,’” said former Treasury Official Brad Setser, criticizing the lack of tough policy demands.

Representative Marjorie Taylor Greene wrote on X, "Tell me how it’s America First to bail out a foreign country with $20 or even $40 BILLION taxpayer dollars." She added that many Americans are struggling financially, making the foreign aid seem out of touch.

Criticism grew as China shifted soybean imports from the US to Argentina, and Trump backed Argentine beef, calling the country “a nation fighting for its life.”

“That really went down like a lead balloon,” said Don Bacon, Rep. congressman from Nebraska. “This is what happens when a president bases policy on personalities… he’s clearly bending over backwards for Argentina’s leader.”

Senator Deb Fischer urged the Trump administration to prioritize trade deals benefiting US farmers over harmful Argentine beef imports.

Democrats have criticized the aid plan, accusing the administration of using US funds to influence Argentina’s elections. Rep. Linda Sánchez and House Democrats warned Bessent against linking support to electoral outcomes.

"The US Treasury’s authorities to address international financial crises, which are meant for situations that present a genuine US national interest, should not be used to influence elections abroad," the letter stated.

Despite criticism, experts like Michael Strain of the American Enterprise Institute defend the strategy, saying, "President Milei is trying to do some difficult things" aligned with American free enterprise and leadership in the hemisphere.

The Trump administration remains firm in its support for Buenos Aires, underscoring the importance it places on Argentina as a strategic partner in the region.