The Trump administration is preparing a multi-billion-dollar financial lifeline for Argentina under President Javier Milei — a move that supporters see as strategic but critics argue undercuts President Donald Trump’s signature “America First” philosophy.
A spokesperson for the U.S. State Department told Newsweek on Thursday that America First Foreign Assistance programs must remain consistent with administration policy while advancing clear U.S. national interests.
Why It Matters
U.S. Treasury Secretary Scott Bessent confirmed Wednesday that Washington is in talks to provide Argentina with $20 billion. The plan follows the Trump administration’s decision to dismantle the U.S. Agency for International Development (USAID) earlier this year, shifting resources instead toward programs tied to Trump’s agenda.
Argentina, one of South America’s largest economies, is a resource-rich nation with oil, gas, uranium, and lithium reserves — key elements for global energy and battery production.
What to Know
Administration officials have signaled repeatedly that financial support for Milei, a close ally of Trump, is on the table. This week, Trump and Milei appeared together at the United Nations General Assembly (UNGA) alongside senior economic advisers.
Critics contend that the move reflects Trump’s personal backing of Milei, who faces midterm elections in October. Trump formally endorsed him on Tuesday, telling reporters, “I’m doing something I don’t often do… I’m giving my full endorsement to him,” praising Milei’s economic overhaul efforts.
“We need to make Argentina Great Again,” Trump declared, borrowing his signature slogan for the moment.
Bessent later posted on X that the Treasury Department “stands ready to purchase Argentina’s USD bonds” and is also prepared to deliver stand-by credit through the Exchange Stabilization Fund. He said active negotiations with Milei’s team are ongoing.
The Pushback
Not all conservatives are on board. Former White House chief strategist Steve Bannon reacted bluntly on Gettr, posting simply: “Wat.”
Senator Chuck Grassley of Iowa voiced frustration on X, saying U.S. farmers are “VERY upset” about Argentina’s soybean sales to China while American soybeans remain blocked by tariffs. Grassley argued the bailout risks undermining American agriculture at a time when trade relief is still unresolved.
The controversy deepened after Argentina announced it would temporarily suspend export taxes on soybeans, a decision that boosts trade with China but potentially weakens the U.S. soybean market.
What People Are Saying
Neera Tanden, former Biden administration policy chief, questioned the administration’s priorities, posting: “Someone needs to explain the rationale for cutting USAID but bailing out Argentina from their own whack policies.”
Senator Elizabeth Warren blasted the plan on X, saying Trump was preparing to lend “$20 billion of our money to bail out a political ally and his global investors before an election,” while highlighting Argentina’s soybean deal with China as a blow to U.S. farmers.
Trump defended Milei in a Truth Social post, calling him “a truly fantastic and powerful Leader” who inherited “a total mess” but quickly stabilized Argentina’s economy. Trump added that Milei has elevated Argentina to “a new level of Prominence and Respect.”
Tommy Vietor, a former Obama aide and Pod Save America host, criticized the bailout on X, writing: “Trump is going to give Argentina a $20 BILLION bank bailout!! This is America First???”
Anthony Michael Kreis, a constitutional law professor, echoed similar frustrations, saying: “Can’t forgive American student debt; can prop up Argentina.”
What Happens Next
The deal is expected to move forward quickly. Kevin Hassett, director of the National Economic Council, told Fox Business that “The U.S. will 100 percent support Argentina.”
Argentina’s midterm elections are set for October 26.
