A child hoists the national flag of Argentina on the outskirts of Dhaka during the 2018 World Cup

The Trump administration is preparing to nearly double its financial support to Argentina by adding a $20 billion private-sector facility atop an existing $20 billion swap agreement, bringing the total U.S. backstop to $40 billion. Treasury Secretary Scott Bessent framed the move as a private-sector solution to help Argentina meet its upcoming debt obligations.

Bessent said Washington is coordinating commitments from banks and sovereign wealth funds to finance the new tranche, which would operate "adjacent to our swap line" targeting Argentina's debt markets. He stressed the additional support is not dependent on electoral outcomes, but on Argentina's continuation of "good policy" regardless of October midterms.

This announcement follows earlier U.S. purchases of Argentine pesos intended to stabilize the currency and calm investor nerves. According to Bessent, these forex interventions are still underway. The peso, which had lost ground amid investor concerns over Argentina's trajectory, rallied modestly following the combined support measures.

Yet the rescue plans remain a high-risk bet. Argentina has defaulted on its sovereign debt multiple times since 2000, and structural weaknesses in its fiscal and monetary configuration are deep. Critics warn that even tens of billions cannot resolve entrenched imbalances, including weak growth, capital flight, and recurring inflation.

President Donald Trump has at times suggested that continued U.S. support could hinge on the electoral success of Argentina's ruling party, remarks that rattled financial markets. In response, Bessent clarified that the $40 billion package is policy-, not election-driven, and support will persist so long as Argentina maintains reformist momentum.

The political dimension of the pledge is unmistakable. Argentine President Javier Milei is closely aligned ideologically with Trump, and the timing of the expanded U.S. rescue plan coincides with Argentina's upcoming legislative elections. Some observers see the assistance as a strategic bid to maintain right-wing governance in a volatile Latin American landscape.

Domestically, the rescue has sparked backlash. U.S. soybean farmers, already under pressure from trade tensions, decry the decision to bankroll Argentina while they struggle with falling Chinese demand for American crops. Critics in Congress have likewise questioned the justification for funding a foreign economic crisis when many U.S. sectors are facing significant headwinds.

Argentina's government remains publicly confident. Economy Minister Luis Caputo has expressed optimism that the currency swap and private-sector facility will be finalized swiftly, and maintained that Milei's economic agenda will continue regardless of political setbacks. In Buenos Aires, officials are also pursuing trade agreements and tariff reductions with the U.S. to cement deeper bilateral ties.

As this bold rescue plan unfolds, markets, governments, and citizens in both nations are watching. The success or failure of this $40 billion bet may reshape perceptions of U.S. influence in Latin America — and test the limits of market confidence in Argentina's capacity to deliver sustainable reform.

IBT's Global Markets Desk will continue to monitor the flow of U.S. funding, Argentine fiscal developments, and investor response as this high-stakes rescue story evolves.

Originally published on IBTimes