US doubles Argentina aid, but only if Milei wins midterms
Argentina’s beleaguered economy may receive a dramatic boost from Washington, but only if President Javier Milei secures a win in this month’s midterm elections.
The Trump administration is now proposing to double its rescue package, effectively linking financial support to political outcomes.
At a meeting in the White House, Donald Trump explicitly conditioned further aid on Milei’s party winning the legislative vote. He warned that without an electoral victory, the United States “would not be as generous.” Markets reacted swiftly: Argentine bonds plunged, stocks tumbled, and the peso lost ground.
The proposed new injection, reportedly $20 billion in private-sector funds, would sit atop an existing $20 billion currency swap line already pledged by the U.S. Treasury. That would bring the total U.S.-backed aid package to around $40 billion — a major lifeline for a government scrambling to stabilise its finances. In parallel, U.S. authorities have intervened in currency markets, including selling Argentine pesos through Citigroup to the Federal Reserve in a bid to support the peso.
Critics and opposition voices in Argentina immediately denounced the arrangement as conditional and coercive. Some viewed it as a clear message: support is contingent not on policies but on electoral success. The proposal raises significant questions about sovereignty, the role of foreign influence in domestic politics, and the sustainability of aid tied to political alliances.
As the October 26 elections approach, Argentina finds itself in a high-stakes moment: the fate of its economy—and the credibility of its democracy—may hinge on whether rescue becomes a tool of political leverage or a genuine act of emergency economic stabilisation.
This story is written and edited by the Global South World team, you can contact us here.
