• The US plans a $20 billion "facility" to aid Argentina's struggling economy alongside a $20 billion swap line.
• Treasury Secretary Scott Bessent emphasizes support will depend on Argentina's adherence to effective economic policies.
• President Trump expresses conditional support for Argentina linked to President Milei’s electoral success.
• Controversy arises in the US regarding the timing and need for this financial support amid domestic farmer struggles.
• Argentina's President Milei seeks US backing for his libertarian policies ahead of crucial midterm elections.

The United States is working on a significant financial initiative involving a new $20 billion "facility" to support Argentina's economy, which will be unveiled alongside an existing $20 billion currency swap agreement. Treasury Secretary Scott Bessent stated this funding aims to provide essential support for Argentina's debt market and is expected to bolster investor confidence during a politically sensitive period, coming just before midterm elections in Argentina that pose a challenge for President Javier Milei, who has instigated controversial budget cuts to address inflation and stabilise the economy, according to ABC News, Al Jazeera, TRT Global, and Reuters.

At a press conference, Bessent elaborated on the new facility, which would work in conjunction with the currency swap, making a total of $40 billion available for Argentina. This announcement positively influenced the Argentine stock market, showcasing a potential recovery while affirming US support for Milei's administration, amid concerns that political changes could disrupt this financial backing. Bessent stressed that the financial support program prioritises Argentina's economic policies rather than merely electoral outcomes, stating that "as long as Argentina continues enacting good policy, they will have U.S. support," according to Al Jazeera, TRT Global, and Reuters.

President Trump has shown vocal support for Milei, indicating that US financial assistance is contingent upon Milei's success in the upcoming elections. Trump explicitly remarked, "If he loses, we are not going to be generous with Argentina," signalling that the geopolitical alignment and future financial agreements hinge on Milei's electoral fortunes. This creates an atmosphere of uncertainty amidst pressing economic troubles in Argentina and ongoing worries over US farm support amidst its own economic challenges, as pointed out by various American farmers who view this support for a foreign economy with skepticism, according to ABC News, Al Jazeera, TRT Global, and Reuters.

In the wake of these developments, President Milei has expressed confidence in securing continued support from the US throughout his term, and has reinforced his commitment to his libertarian economic policies despite facing extensive domestic criticism and protests. Milei stated, "We continue to advance the ideas of freedom, so at least until 2027 we have that support assured," emphasizing his belief in long-term US backing provided he remains in power, as noted in reports from Al Jazeera, TRT Global, and Reuters.