US Reinforces Support for Milei's Government with $40 Billion Package Amid Midterm Elections

US Unveils Significant Financial Aid for Argentina

The United States has formalized a comprehensive financial support package for Argentina, totaling $40 billion. This aid, orchestrated by the Trump administration, includes a $20 billion currency swap line with Argentina's Central Bank and an additional $20 billion facilitated through private lenders and sovereign wealth funds. The announcement, made in late September and early October 2025, underscores a reinforced commitment to Argentina's economic stability under President Javier Milei.

US Treasury Secretary Scott Bessent confirmed the measures, stating that the US would do 'what is needed' to aid Argentina and expressed 'full support' for President Milei's economic reforms.

Aid Linked to Milei's Midterm Electoral Success

A critical aspect of this financial backing was its explicit connection to the outcome of Argentina's October 26, 2025 midterm elections. US President Donald Trump publicly conditioned continued financial support on the strong performance of President Milei's party, La Libertad Avanza (LLA). Trump reportedly warned that if Milei's party did not fare well, the US would 'not be generous with Argentina' and would 'not waste its time.'

Following the elections, Milei's LLA party achieved a 'landslide victory,' exceeding expectations by securing over 40% of the votes. This result was widely interpreted as a crucial vote of confidence for Milei's administration and was seen by some as influenced by the US intervention, with the prospect of aid withdrawal potentially swaying voters.

Impact on Argentina's Economic Stability Efforts

The substantial US financial package is designed to bolster Argentina's ongoing efforts to achieve economic stability. The funds are intended to:

• Stabilize the Argentine peso.
• Shore up the country's capital reserves.
• Address the persistent currency crisis and debt issues.

President Milei's government has been implementing stringent austerity measures, including significant spending cuts and reforms aimed at reducing inflation, which has reportedly seen a sharp decline. The US support is considered vital for these reforms and for attracting private sector investment, with Secretary Bessent emphasizing the US desire to be Argentina's 'partner of choice' as it reopens to global markets.

Historical Context and Current Alignment

While the current $40 billion package is a direct initiative of the Trump administration, it is distinct from the $57 billion IMF loan granted to Argentina in 2018 during the Macri presidency, which the US, as a major IMF shareholder, supported. The recent aid highlights a strong ideological alignment between President Milei and President Trump, with Trump calling Milei his 'favorite president' and Milei expressing gratitude for the US support. This renewed partnership aims to strengthen US influence in Latin America and counter other regional powers.