As the U.S. government shutdown drags into its 16th day, a fierce debate has erupted in Washington and beyond over President Donald Trump’s decision to push forward with a massive bailout package for Argentina. The administration’s plan, which could funnel up to $40 billion to the South American nation, has ignited criticism from across the political spectrum and raised fundamental questions about America’s priorities during a time of economic strain at home.
On October 16, 2025, Treasury Secretary Scott Bessent announced that the administration was working to send another $20 billion to Argentina, bringing the total U.S.-backed bailout to a staggering $40 billion. According to reporting by Democrats.org, this sum surpasses what it would cost to fund Affordable Care Act tax credits for two years—an especially pointed comparison as millions of Americans brace for skyrocketing health insurance premiums due to the ongoing government shutdown and the possible expiration of those very subsidies.
“Turns out ‘America First’ was just another one of Donald Trump’s lies,” charged Kendall Witmer, DNC Rapid Response Director, in a statement published by Democrats.org. Witmer accused Trump of “sending billions of dollars overseas to enrich his wealthy friends while American families and farmers bear the brunt of his disastrous economic policies.” The statement continued, “Trump is happy to send billions to his buddies in foreign countries, but when it comes to health care for working families, he’s not willing to spend a penny. That’s not America First—it’s Donald Trump First and America Last.”
The bailout has also drawn sharp rebukes from within the president’s own party. Representative Marjorie Taylor Greene (R-Ga.), a frequent Trump ally who has recently bucked Republican leadership on several issues, took to social media to voice her outrage. “Americans are getting decimated with high cost of living and skyrocketing insurance costs. Many of them have zero savings and some are maxing out credit cards to survive,” Greene wrote on X. “Tell me how it’s America First to bailout a foreign country with $20 [billion] or even $40 BILLION taxpayer dollars.”
Greene’s criticism is not just about the optics of sending money abroad while Americans struggle. She has also been outspoken about the looming expiration of enhanced Affordable Care Act subsidies, which is set to drive up health insurance premiums for millions if the shutdown continues. “Not a single Republican in leadership talked to us about this or has given us a plan to help Americans deal with their health insurance premiums DOUBLING!!!” she wrote, according to Nexstar Media Inc.
Senator Elizabeth Warren (D-Mass.), the ranking member of the Senate Banking, Housing, and Urban Affairs Committee, has pressed the administration for answers on the Argentina deal. In a letter to Secretary Bessent, Warren expressed concern about the timing and beneficiaries of the bailout, writing, “President Trump does not appear to be interested in meaningfully addressing any of the country’s pressing problems. Instead, during a government shutdown, his Administration is working to facilitate private investment in a foreign country–at the expense of the United States economy.” Warren previously authored the No Argentina Bailout Act, which would have prohibited U.S. bailouts of Argentina’s financial markets and wealthy investors.
Warren’s letter highlights that on October 9, 2025, the Treasury Department agreed to a $20 billion currency swap with Argentina’s central bank to prop up the country’s failing financial markets—a move, she contends, designed to benefit “major fund managers” and “wealthy investors” at the expense of American taxpayers and farmers. Then, on October 15, 2025, Secretary Bessent announced plans to facilitate an additional $20 billion in private sector investment to help Argentina with upcoming debt payments. Warren demanded a detailed explanation of the proposed $20 billion facility’s potential impact on U.S. financial stability by October 21, 2025.
Critics have pointed to the fact that prominent financial firms with close ties to Secretary Bessent—including BlackRock, Fidelity, and PIMCO—are heavily invested in Argentina and stand to benefit from the bailout. According to Democracy Now!, Argentine journalist Pablo Calvi said, “I don’t see that the bailout would benefit the Argentine people or the American people, for that matter.” Calvi, an associate professor at Stony Brook University, explained that the bailout is primarily intended to stabilize the Argentine peso and keep inflation at bay ahead of the country’s midterm elections—moves that would help President Javier Milei, a far-right leader and close Trump ally, remain in power.
The relationship between Trump and Milei is central to this story. On October 14, 2025, Trump hosted Milei at the White House, making clear that U.S. support was contingent on Milei’s party winning legislative elections later in the month. “We’re going to work very much with the president. We think he’s going to win. He should win. And if he does win, we’re going to be very helpful. And if he doesn’t win, we’re not going to waste our time, because you have somebody whose philosophy has no chance of making Argentina great again,” Trump declared, as reported by Democracy Now! He described the bailout as “just helping a great philosophy take over a great country.”
Calvi identified three main drivers for the U.S. support: geopolitical strategy, economic interests, and ideological affinity. Geopolitically, Calvi suggested that the Trump administration sees an opportunity to strengthen ties with Argentina as traditional alliances in Latin America shift. Economically, the tech industry has a keen interest in Argentina’s vast natural resources, including lithium—essential for AI and battery technologies. Calvi pointed out that “a few days ago, Sam Altman announced that he was going to invest $25 billion in an AI center in Patagonia.” He added, “There’s a number of things that have to do with AI, crypto, that require enormous amounts of energy, that require vast amounts of land, water, the precious earth minerals…Argentina has them, lithium.”
The third factor is the ideological connection between Trump and Milei. Calvi described Milei as “a little bit of a mini-Trump,” noting that while both are populists, Milei is more globalist in his investment outlook. “I think that there’s a lot of similarities. Milei is a fan boy of Trump. So, there’s some affinity there.”
Yet, the plan is not without risk. Calvi warned that the bailout could backfire both in Argentina and in the U.S., where many view it as an inappropriate use of funds during a domestic crisis. “I don’t see too many scenarios in which this bailout benefits anybody other than Milei, Trump and the sectors that surround them,” he said. “I don’t see that the bailout would benefit the Argentine people or the American people, for that matter.”
As the debate rages on, the fate of both the U.S. government shutdown and the Argentina bailout remains uncertain. What is clear is that the Trump administration’s gamble has exposed deep divisions—over economic priorities, foreign policy, and the meaning of “America First”—with no easy resolution in sight.