In one of the most controversial foreign policy moves of his second term, U.S. President Donald Trump has announced plans to double Washington’s bailout package to Argentina — taking the total aid to an eye-popping $40 billion. Officially billed as an “economic stabilization initiative,” this massive infusion of funds comes just weeks before Argentina’s crucial midterm elections, raising global eyebrows and accusations of political interference.
Trump’s move, critics argue, is not about saving Argentina’s economy, but about saving Argentine President Javier Milei, Trump’s ideological twin and political ally. The timing, tone, and conditional nature of the funding have sparked outrage both in Buenos Aires and in Washington, with opposition leaders calling it “election funding disguised as aid.”
The Trump–Milei Connection: Ideology and Loyalty
Since coming to power in December 2023, Javier Milei has cultivated a flamboyant, fiercely pro-American image, mirroring Trump’s populist playbook. The Argentine leader brands himself an “anarcho-capitalist,” advocating radical free-market reforms, privatization, and a smaller state. His campaign speeches, marked by fiery anti-socialist rhetoric and anti-establishment zeal, won him comparisons to Trump even before they met.
Trump has repeatedly called Milei “a great friend” and “a man who loves freedom.” The relationship has evolved into one of mutual endorsement — and now, financial lifeline. During a recent White House meeting in October 2025, Trump publicly tied America’s generosity to Milei’s political fate, declaring:
“If he loses, we will not be generous with Argentina.”
It was an unprecedented admission — that U.S. aid was conditional upon the re-election of a specific foreign leader.
The $40 Billion Lifeline — Or Leash?
The Trump administration initially approved a $20 billion bailout to stabilize Argentina’s collapsing peso, as inflation and debt crippled the economy. That figure has now doubled to $40 billion, with additional funding sourced from private American investors and financial institutions such as BlackRock and Fidelity, both of which hold major stakes in Argentine debt.
Treasury Secretary Scott Bessent, a former hedge fund executive, described the package as “a joint public-private mechanism to ensure regional stability.” But critics inside and outside the U.S. point to the timing — just days before Argentina’s October 26 midterm elections — as evidence that the money serves political, not economic, objectives.
Trump’s remarks further fuel that suspicion. By openly conditioning the aid on Milei’s victory, he has blurred the line between foreign assistance and electoral manipulation.
Milei’s Decline and Domestic Discontent
At home, President Milei is battling plunging approval ratings. Once hailed as a bold reformer ready to “blow up the political caste,” he now faces record disapproval of 58% according to September 2025 polls. Inflation continues to surge, GDP growth has slowed to 1.4%, and living costs are crushing the working class.
Milei’s ambitious plan to dollarize the economy has stalled, and scandals involving alleged bribery within his administration have further dented his credibility. His party, La Libertad Avanza, risks losing its parliamentary majority in the upcoming elections.
For many Argentines, the new U.S. bailout is seen less as relief and more as foreign intrusion — a tool to keep Milei in power. Protesters in Buenos Aires now chant, “Argentina is not for sale,” as anti-U.S. sentiment spreads among the middle class and youth.
The BRICS Betrayal: A Strategic Shift
Perhaps the most controversial decision of Milei’s presidency came early: his withdrawal from Argentina’s invitation to join BRICS — the powerful economic bloc comprising Brazil, Russia, India, China, and South Africa. Under the previous Peronist government, Argentina was set to become a full BRICS member in January 2024, opening doors to billions in investment and trade with Asia and Africa.
But just weeks after taking office, Milei scrapped the plan, citing his “alignment with Western democracies.” That move was widely interpreted as a direct concession to Washington — and to Trump personally, who has repeatedly criticized BRICS as a “China-led alliance undermining the dollar.”
Economists in Argentina estimate the decision cost the country billions in potential trade deals and access to alternative credit sources. “It was an act of geopolitical servitude,” says political analyst María Torres. “Argentina turned its back on emerging markets to please Washington — and gained almost nothing in return.”
Now, with Milei’s popularity sinking, opposition leaders are vowing to reapply for BRICS membership if they win power, describing it as a way to restore sovereignty and economic diversification.
U.S. Critics Cry Foul
The backlash isn’t confined to Argentina. In Washington, progressive lawmakers have condemned the $40 billion deal as an abuse of power.
Senator Bernie Sanders accused Trump of “using taxpayer money to fund a foreign campaign,” while Representative Ilhan Omar called the package “a political bribe paid for by ordinary Americans.”
Omar further highlighted the hypocrisy of approving billions in foreign bailouts while domestic programs face cuts:
“Trump is handing billions to Argentina while gutting healthcare and food assistance at home. This is not aid — this is election interference.”
Financial watchdogs also question the role of U.S. hedge funds, pointing out that many of the institutions involved stand to profit handsomely if Argentina’s new bailout terms favor bondholders. In short, Wall Street wins, while Argentine citizens lose.
Argentina’s Political Climate: Winds of Change
On the streets of Argentina, anger is palpable. Milei’s once-loyal voter base — small business owners, urban professionals, and students — has begun to fracture. Many who saw him as a “revolutionary outsider” now view him as Trump’s puppet, too dependent on U.S. influence to defend national interests.
The opposition, led by Sergio Massa and the Peronist coalition, is gaining ground by promising to rebuild social programs, strengthen local industries, and restore ties with BRICS nations. “We will not be anyone’s colony,” Massa declared at a rally in Rosario.
If the opposition secures a majority in the midterms, Milei’s reform agenda could be paralyzed — and his presidency severely weakened. It would also send a message across Latin America: foreign interference has limits.
The BRICS Factor: A South American Pivot
Trump’s high-stakes gamble may also have unintended geopolitical consequences. By tying U.S. aid so blatantly to political outcomes, Washington risks pushing Latin America closer to BRICS.
Brazil, a founding BRICS member, has already condemned what it calls “undue interference in regional affairs.” China, too, has subtly hinted at reopening BRICS invitations to “any nation that values true sovereignty” — a not-so-veiled invitation to Argentina’s opposition.
If post-Milei Argentina joins BRICS, it would mark a turning point: the economic bloc’s first major expansion into South America. Combined with recent additions in Africa and the Middle East, BRICS could establish itself as a counterweight to Western dominance — a major blow to Trump’s foreign policy vision.
The $40 Billion Question
As the October elections approach, Argentina stands at a crossroads. Trump’s bailout may temporarily stabilize the markets, but it has polarized the nation and inflamed anti-U.S. sentiment. What was meant to be a symbol of economic partnership has turned into a lightning rod of political controversy.
For Washington, the question is simple: Can money buy loyalty in a world increasingly tired of American interventionism?
For Buenos Aires, the stakes are even higher: Will Argentina remain tied to the U.S. dollar — or reclaim its place in the emerging multipolar world led by BRICS?
As one Argentine protester put it during a recent rally:
“This is not a bailout. This is a leash.”
The outcome of Argentina’s midterm elections may not just decide Javier Milei’s fate — it could redefine South America’s entire alignment in the global order.
