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ARGENTINA | Yesterday 18:43

Milei tries to defy Congress amid disability emergency law row

Law reinstated after veto clash now stalled again over funding demands; Disability groups decry “cruelty policy” of Milei government.

President Javier Milei’s government has promulgated the Disability Emergency Law he previously vetoed – while introducing another obstacle to its formal application.

The opposition-drafted law, which boosts funding for the disabled, was created in response to cutbacks introduced by the Milei government. 

It was approved by both chambers of Congress with cross-party support, struck down by the head of state and later reinstated after Congress overturned a presidential veto. 

Opposition leaders are now accusing Milei of trying to “nullify” the law by decree, warning that his latest manoeuvre ignores the will of lawmakers and leaves vulnerable groups without relief.

The law declaring an emergency in the care of people with disabilities moves to regularise health benefit arrears, update fees for service providers and guarantee them until December, 2027.

It also proposes a reform of the non-contributory pension system, strengthening the role of the ANDIS national disability agency and reinstating a mandatory employment quota for people with disabilities.

Cutbacks in spending for the disabled have been a source of friction for the government. Demonstrations have slammed Milei’s “cruelty policy,” which campaigners say hit the vulnerable the most. 

The situation worsened when audio recordings attributed to Diego Spagnuolo, the former head of the ANDIS national disability agency, were leaked last month implying the existence of a massive corruption scheme involving the government body.

A criminal probe into the allegations is ongoing in the courts. Among those under investigation is Karina Milei, President Milei’s sister and powerful chief-of-staff.

 

(Conditional) promulgation

On Monday, via Decree 681/2025, published in the Official Gazette, the Milei administration enacted Law 27,793 declaring a national disability emergency until December 31, 2026, extendable for one year. 

Yet Article 2 of the decree effectively blocks its enforcement by demanding that Congress specify the source of funds required to cover the measure. The cost for this year alone is estimated at three trillion pesos, according to the government decree – around 0.35 percent of Gross Domestic Product.The move escalates the ongoing confrontation between the Milei government and Congress, which overturned the President’s veto last month. 

The Chamber of Deputies rejected it on August 20 by 172 votes to 73, while the Senate followed on September 4 with a margin of 63 to 8.

The new law grants Cabinet Chief Guillermo Francos the power to reallocate funds to finance the initiative but government officials argue that Congress has failed to define a viable financing source, thereby threatening Milei’s attempts to balance Argentina’s budget.

Opposition caucuss say the government is once again trying to bypass the will of Congress.

The Encuentro Federal caucus has already requested that Francos be summoned to testify and face a censure vote for “failing to comply with Law 27,793 on Disability Emergency,” issuing decrees they deem “null and unconstitutional” and for failing to reassign funds as mandated.

 

Financing

Providing its reasoning in its decree, the government cited Article 38 of the Financial Administration Law, which states that any measure authorising expenditure not foreseen in the budget must specify its financing. 

It also invokes Article 5 of Law 24,629, which stipulates that “any law which authorises or orders expenditure must expressly provide for its financing. Otherwise, its execution will be suspended until the corresponding items are included in the national budget.”

“Any expansion of benefits must be designed with financial viability, institutional responsibility and long-term sustainability in mind,” said the government.

The law’s provisions include adjusting disability service pricing retroactively from December 2023 in line with accumulated inflation and automatic monthly index-linking of non-contributory pensions to the consumer price index. 

Disability pensions are set at 70 percent of the minimum retirement benefit. The law also establishes a new pension for people aged over 70 or with a certified disability who lack sufficient resources or coverage.

 

– TIMES/NA/PERFIL

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