Velázquez Demands Answers on Trump’s $20 Billion Bailout for Argentina

WASHINGTON- Today, Congresswoman Nydia M. Velázquez (D-NY) led 35 Members of Congress in demanding answers from Treasury Secretary Scott Bessent regarding the Trump Administration’s reported plan to extend approximately $20 billion in support to Argentina through the U.S. Department of the Treasury’s Exchange Stabilization Fund (ESF).
 
The lawmakers warn that the ESF is being used to provide extraordinary financial assistance to President Javier Milei’s government for political ends, rather than to serve U.S. economic interests.
 
“At a time when tariffs, rising prices and cuts to essential domestic programs are straining American families and businesses, it is troubling that U.S. taxpayer-backed funds are being deployed to stabilize a foreign government’s currency, seemingly to advance partisan objectives, rather than to meet urgent needs at home,” wrote the lawmakers. “The Milei Administration's extreme austerity program has caused spending on utilities to rise from 6 to 15 percent of the average salary, while failing to achieve its purported goal of macroeconomic stabilization. The recent provincial election results in Argentina underscore widespread dissatisfaction with these policies and the severe social costs of Milei’s experiment.”
 
The lawmakers also question the transparency and legality of the Administration’s actions. Historically, interventions through the ESF were guided by a defined policy framework. These actions typically included repayment schedules and required congressional notifications to ensure accountability and protect U.S. taxpayers. In this instance, the Administration’s decision to proceed without comparable safeguards or transparency raises serious concerns regarding the rationale, legality, and fiscal responsibility of its actions.
 
“Significant American investment of this nature demands consultation and oversight from Congress.  Historically, deployment of the ESF—like for Mexico in 1995— has come with substantial consultation and collaboration with Congress and transparency into the ESF’s operations,” continued the lawmakers. “We expect the Treasury Department to provide Congress and the American people with information concerning the actions taken through ESF to strengthen the Argentinian peso and stabilize Argentina’s economy.”
 
Reports indicate that major U.S. investment firms—including Fidelity, Pimco, and Discovery Capital Management—stand to profit directly from this intervention due to their exposure to Argentine bonds. This suggests the Administration may be using the Exchange Stabilization Fund to advance the interests of Wall Street investors at the expense of U.S. taxpayers.
The letter also raises concerns about Argentina’s ability to repay the loan. The government’s practice of draining billions in reserves to defend an overvalued currency is unsustainable regardless of how much it borrows from the United States or international lenders. The lawmakers write that the Treasury Department owes the American people a clear explanation of what actions have been taken to protect the ESF and U.S. taxpayers from potential losses.
 
“Treasury must explain what reforms or collateral are in place to protect the ESF and U.S. taxpayers from loss,” concluded the lawmakers. “Given the magnitude and precedent of this action, we request that Treasury suspend any disbursement or implementation of the proposed swap or credit line to Argentina until these issues are fully addressed.”
 
In addition to Velázquez, the letter was signed by Reps. Alma Adams (D-NC), Greg Casar (D-TX), Joaquin Castro (D-TX), Judy Chu (D-CA), Yvette Clarke (D-NY), Emanuel Cleaver (D-MO), Diana DeGette (D-CO), Suzan DelBene (D-WA), Lloyd Doggett (D-TX), Veronica Escobar (D-TX), Dwight Evans (D-PA), Chuy Garcia (D-IL), Sylvia Garcia (D-TX), Al Green (D-TX), Jim Himes (D-CT), Steven Horsford (D-NV), Jonathan Jackson (D-IL), Sara Jacobs (D-CA), Pramila Jayapal (D-WA), Robin Kelly (D-IL), Eleanor Holmes Norton (D-DC), Alexandria Ocasio-Cortez (D-NY), Ilhan Omar (D-MN), Scott Peters (D-CA), Delia Ramirez (D-IL), Jan Schakowsky (D-IL), Brad Sherman (D-CA), Lateefah Simon (D-CA), Eric Swalwell (D-CA), Mark Takano (D-CA), Rashida Tlaib (D-MI), Jill Tokuda (D-HI), Paul Tonko (D-NY), Juan Vargas (D-CA).  
 
Find the full letter here.
 

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