Media Center

WASHINGTON D.C. – Today, Congressman David Scott (GA-13), a senior member on the House Financial Services Committee (HFSC), and Committee Democrats sent a letter to Treasury Secretary, Scott Bessent, regarding the decision to bailout Argentina without clear enforceable conditions or protection from losses. The letter admonishes the department for risking well over $20 billion in taxpayer money when American farmers are struggling and workers are not getting paid because of the Republicans’ reckless shutdown.

Congressman David Scott and HFSC Democrats sharply criticize Secretary Bessent’s use of Treasury’s Exchange Stabilization Fund (ESF) and establishment of the $20 billion swap line to prop up Argentina’s worsening currency crisis. While the secretary has broad discretion over how funds are deployed, they note that ESF assistance is not intended to provide open-ended bailout financing for foreign governments or to outright purchase a foreign currency, like the peso, which has lost more than 27 percent of its value against the dollar in 2025.

“The U.S. is effectively stepping in to backstop a volatile Argentine peso with little to no economic safeguards—despite an ongoing shutdown and Argentina’s long history of fiscal mismanagement and chronic instability,” said Congressman David Scott. “Secretary Bessent’s reckless decision means U.S. taxpayers will be exposed to extreme risk: a sharp peso devaluation, collateral losses, or another likely default by the Argentine government. To this day, the Treasury Department has failed to disclose how it plans to respond to large mark-to-market losses or rollover risk on holdings if the peso continues to fall. In order to protect Americans’ interests, a bailout of this size must have enforceable conditions, proper congressional consultation, and clear risk disclosures. Anything less is unacceptable.”

Congressman David Scott and HFSC Democrats are calling on Secretary Bessent to provide full transparency regarding Treasury’s bailout of Argentina, including:

• How much Argentine peso exposure Treasury has accumulated to date through the peso-purchase program and swap line purchases?
• Whether Treasury required that Argentina adopt structural reforms, such as fiscal primary balance targets, monetization limits, or foreign-exchange regime adjustments?
• What is the exact cost, schedule, collateral, and risk evaluation for the $20 billion currency-swap arrangement?
• What exit strategy and safeguards are in place to prevent rollover dependency or in case the bailout fails?

Access the full letter to Secretary Bessent here.

List of HFSC co-signers: David Scott (GA), Brad Sherman (CA), Gregory Meeks (NY), Bill Foster (IL), Emanuel Cleaver (MO), Joyce Beatty (OH), Juan Vargas (CA), Vicente Gonzalez (TX), Sean Casten (IL), Brittany Pettersen (D-CO), Sam Liccardo (D-CA), in addition to Marcy Kaptur (OH).

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