Warren, Colleagues Introduce Bill to Stop Trump’s Argentina Bailout

Warren, Colleagues Introduce Bill to Stop Trump's Argentina Bailout

Senators Warren, Kaine, Van Hollen, Booker, Smith, Gallego, Sanders, and Welch Introduce Bill to stop Donald Trump from propping up a foreign government while he shuts down our own

Bill Text (PDF)

Washington, D.C. - Today, U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, and Tim Kaine (D-VA), Chris Van Hollen (D-MD), Cory Booker (D-NJ), Tina Smith (D-MN), Ruben Gallego (D-AZ), Bernie Sanders (I-VT), and Peter Welch (D-VT) introduced the No Argentina Bailout Act, legislation that would prohibit the use of the Exchange Stabilization Fund (ESF) of the Department of the Treasury to bail out Argentina's financial markets, and its global investors, while American families are struggling at home and the Trump Administration is shutting down our own government.

"It is inexplicable that President Trump is propping up a foreign government, while he shuts down our own. Trump promised 'America First,' but he's putting himself and his billionaire buddies first and sticking Americans with the bill," said Ranking Member Warren.

"Donald Trump can't even keep the government open, but he's going to put $20 billion of U.S. taxpayer money at risk to bail out his personal friend President Milei of Argentina, a country that is working to undercut American soybean farmers amid Trump's trade wars," said Senator Kaine. "This legislation would stop the Trump Administration from using taxpayer dollars to help his political ally."

"Trump refuses to negotiate to keep the government open or prevent a massive spike in health care costs for Americans, but he's eager to shell out $20 billion of taxpayer money to bail out his authoritarian buddy in Argentina. All the while, Americans are stuck facing higher prices at the grocery store and higher premiums on their health insurance. We must put a stop to Trump's brazen scheme to put himself and his cronies ahead of the needs of the American people," said Senator Van Hollen.

"While American families struggle to make ends meet and the President forces our country into a shutdown, Donald Trump's priorities have never been clearer as he inexplicably wastes $20 billion in taxpayer dollars as a political favor to bailout his foreign friends," said Senator Booker. "Our soybean farmers are suffering from the trade war Trump has incited, and instead of working to support American workers and farmers, or restore our place on the global stage, this move will only push us further behind. The No Argentina Bailout Act is legislation to block this brazen misuse of funds so our country can focus on lowering costs at home and protecting our farmers."

"Donald Trump should not be sending $20 billion, backed by taxpayers, just to prop up a foreign political ally. That money should be spent on our own citizens, who are just trying to scrape by and figure out a way to make their lives work while everything seems to get more expensive," said Senator Smith. "The No Argentina Bailout Act would make clear that President Trump doesn't get a blank check to send our constituents' money to whatever countries he wants to do political favors for, especially when Argentina is undermining US soybean farmers who have been harmed by the Republicans' trade war."

"At a time when Donald Trump's policies are making Americans sicker and poorer, when his reckless trade war is squeezing soybean farmers' bottom lines, and when Republicans are shutting down the government just to rip health care away from millions, Trump's priority is a $20 billion bailout to Argentina. The President should be focused on lowering costs here at home, not handing out favors to his foreign friends," said Senator Gallego.

"President Trump says we have to throw 15 million Americans off health care and more than double health insurance premiums for 24 million people because we don't have enough money. But somehow, we have $20 billion to bail out the right-wing regime of Argentina? We can't let that happen," said Senator Sanders.

"President Trump has shown us time and again that his Administration will always prioritize scoring political points over the well-being of hardworking Americans. His reckless trade war and failure to keep the lights on and fund the government are just the latest in a long line of examples," said Senator Welch. "It's appalling that this President is totally fine with wreaking havoc on farmers here at home but wants to hand out $20 billion to help farmers in South America. Our legislation pumps the breaks on Trump's plan to spend millions of taxpayer dollars bailing out right-wing allies in Argentina."

The No Argentina Bailout Act would end the ability of the Trump Administration to provide unilateral financial support to Argentina during Argentina President Javier Milei's term. It would prohibit Treasury Secretary Scott Bessent from using the ESF to provide direct or indirect financial assistance to Argentina, including through the use of currency swap lines, currency or sovereign debt purchases, or direct loans.

The Trump Administration announced it "stands ready to do what is needed" to bail out Argentina's financial markets amidst the country's economic turmoil, starting with a $20 billion swap line with Argentina's central bank. Milei is a close political ally of Trump and faces a crucial midterm election on October 26. Milei, and the Trump Administration, are worried that the ongoing financial market turmoil will negatively impact the upcoming election and derail his radical libertarian economic agenda.

In addition, to help Congress fulfill its legislative responsibilities, Ranking Member Warren sent a letter to Bryan Corbett, President and CEO of the Managed Funds Association (MFA), to request information about the role the MFA and its over 180 fund managers played in the Trump Administration's decision to bail out Argentina. Hedge funds, including some billionaires politically connected to the Trump Administration, have poured money into Argentina in recent years. Treasury's financial support provides a potential off-ramp and helps hedge funds limit losses as they exit their investments.

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