WASHINGTON (Nov. 2, 2025) — Senator Elizabeth Warren (D-Mass.) is taking direct aim at President Donald Trump’s decision to extend a $20 billion currency swap to help stabilize Argentina’s struggling peso, calling the move a “bailout for hedge funds and Trump’s political ally abroad” while Americans face rising costs and a prolonged government shutdown.

In a post shared Sunday night on X (formerly Twitter), Warren blasted the administration’s actions, arguing that the deal contradicts Trump’s long-touted “America First” agenda.

“Trump is sending $40 billion to bail out hedge funds and his political ally in Argentina. But here at home, he’s shutting down our government and raising health care costs,” Warren wrote. “So much for ‘America First.’”

The senator also posted a short video breaking down the deal, accusing the Treasury Department of prioritizing Wall Street interests and foreign politics over domestic economic relief. “Instead of fixing problems at home, the Trump administration sent Argentina $20 billion,” she said. “They bought up billions of dollars in pesos and are still pushing Wall Street to kick in another $20 billion. It made hedge funds richer and helped Trump’s political ally overseas, but it sure didn’t help American families.”

Accusations of Political Favoritism

Warren’s criticism comes after she accused Treasury Secretary Scott Bessent and Trump of using the deal to “buy” political favor for Argentine President Javier Milei, a right-wing populist and one of Trump’s strongest international allies.

According to Warren, the U.S. Treasury finalized a $20 billion dollar-for-peso swap while also coordinating open-market peso purchases and encouraging private investors to launch an additional $20 billion facility. She claims the move amounts to a $40 billion package that indirectly boosts Milei’s economic standing ahead of his country’s midterm elections.

Bessent has defended the move as fiscally sound and strategically necessary, arguing that it strengthens the U.S. position in Latin America and prevents China from expanding its financial influence in the region. “This is not a bailout — it’s a partnership to stabilize an ally’s economy at no cost to the American taxpayer,” he said during a press briefing last week.

Growing Tensions Amid Shutdown

The exchange comes as the U.S. government shutdown stretches into its 33rd day, halting federal paychecks and food aid programs while consumer prices continue to climb. A coalition of Democratic-led states has filed a lawsuit demanding SNAP funding for November, warning that millions of low-income families could lose access to food assistance if the stalemate continues.

Warren and her allies argue that funneling billions overseas during a domestic funding crisis is “tone-deaf and reckless.”

“This administration is bailing out a foreign government while American farmers, families, and federal workers are being left behind,” Warren said in a statement.

Democrats Pressure Treasury

Last week, Warren and Sen. Amy Klobuchar (D-Minn.) led a letter signed by several Democratic senators urging the Treasury Department to reverse the Argentina deal, claiming it disadvantages U.S. agricultural exports. They pointed to increased Argentine soybean shipments to China, which they argue are undermining American farmers struggling with trade restrictions and higher production costs.

“Every dollar spent propping up Argentina’s peso is another dollar not helping American producers,” Klobuchar said.

Supporters Say Deal Promotes Stability

Despite the criticism, Treasury officials and some international economists defend the deal, saying that maintaining stability in Argentina — Latin America’s third-largest economy — is critical for regional security and for countering Beijing’s financial reach.

“Allowing Argentina to collapse would create ripple effects across global markets,” said one senior Treasury official who spoke on condition of anonymity. “Our action is preventive, not political.”

Republican Response

Republicans in Congress have largely dismissed Warren’s criticisms as partisan theater. GOP lawmakers argue that Democrats should focus on ending the government shutdown, which they say persists because Democrats refuse to accept Trump’s proposed spending framework.

“Democrats are blocking reopening the government while complaining about foreign aid,” one Republican strategist said. “It’s political hypocrisy, plain and simple.”

Broader Implications

The dispute highlights the tension between foreign policy priorities and domestic economic realities, a recurring theme in U.S. politics. For Warren and progressives, the Argentina swap underscores what they view as Trump’s misplaced loyalties — aiding global elites while neglecting working Americans.

Supporters of the administration, however, say the move shows strategic foresight in a volatile global economy, where U.S. influence is increasingly challenged by China’s economic diplomacy.

As the government shutdown grinds on, the debate over the Argentina bailout has become another flashpoint in an already bitter political season — one that pits “America First” rhetoric against global financial pragmatism.