Bessent Says $20B Argentina Rescue Was Essential — Even with the Government Shut Down

With input from CNN, the Financial Times, and Bloomberg.

Treasury Secretary Scott Bessent is defending his agency’s work on a $20 billion lifeline for Argentina during the federal shutdown, calling it “mission-critical” and squarely within the department’s core responsibilities.

In a Tuesday response to Sen. Elizabeth Warren — the top Democrat on the Senate Banking Committee — Bessent said Treasury had to focus on “efforts necessary to the discharge of the President’s constitutional duties — including national security and global financial stability.” Warren had pressed him a week earlier on why staff were pushing the Argentina package while most of Washington was running on fumes.

The rescue, unveiled earlier this month, is structured as a currency swap: Argentina’s central bank can exchange pesos for US dollars through Treasury. In practice, that functions like a government loan and is meant to calm Argentina’s financial markets by boosting dollar liquidity.

So far, the results are mixed. The peso popped on the announcement but then slid to a new low earlier this week, suggesting the fix may not stick without more support.

Politics hover over the economics. The peso’s slide accelerated after President Javier Milei — a close ally of President Donald Trump — took losses in local races, raising doubts about holding a legislative majority ahead of midterms later this month. Trump has since hinted future US help could hinge on those election outcomes.

Warren also flagged Treasury’s apparent plans to enlist private banks for an additional $20 billion loan on top of the government package. Bessent’s letter didn’t directly address the private-sector piece, and Treasury didn’t respond to CNN’s follow-ups.

Next up for Bessent: a meeting in Malaysia with Chinese Vice Premier He Lifeng, as US–China trade tensions tick higher.