Milei loses big: Senate overturns disability legislation veto

Javier Milei experienced a significant setback on Thursday when the Senate voted to reverse a presidential veto, marking the first occurrence of such an event in 22 years. In a significant political setback for the Casa Rosada, senators have opted to reject Milei’s attempt to abolish the Disability Emergency Law, thereby ensuring that the bill must now be enacted into law.

This marks the inaugural instance of Congress successfully overturning a veto since Milei assumed office in December 2023. The most recent instance of rejecting such a move occurred in March 2003. The government’s situation was further exacerbated by the margin of defeat: 63 votes in favor, contrasted with a mere seven against. The opposition Peronist bloc successfully garnered the backing of UCR, PRO, and provincial centrist senators, while the ruling La Libertad Avanza party managed to attract only PRO senator Carmen Álvarez Rivero to its side. Beyond the halls of Congress, a multitude of disabled advocates, along with their families and supporters, marked the outcome with celebration. “It brings me great happiness…so that people with disabilities can live as they should,” stated Trinidad Freiberg. Prior to Thursday, Congress had not overturned a complete presidential veto since March 12, 2003. This period occurred under the transitional administration of President Eduardo Duhalde, who assumed office on January 1, 2002, following the resignation of Fernando de la Rúa amid the economic crisis of 2001-2002.

The legislation, aimed at augmenting financial support for individuals with disabilities, received Congressional approval in July. The legislation, which declares an emergency in the care of individuals with disabilities, aims to regularize long-overdue back payments for health benefits, revise fees for service providers, and ensure their continuation until December 2026, with the possibility of extension until 2027. The proposal includes a reform of the non-contributory pension system, enhances the role of the ANDIS national disability agency, and reinstates a mandatory employment quota for individuals with disabilities. UCR Senator Maximiliano Abad expressed that Milei’s veto had “stunned” him. “They are requesting that we allocate resources despite not having presented a budget in two years.” He said to the chamber “There is no contradiction between taking care of public accounts and guaranteeing basic rights.” Peronist representatives have strongly criticized Milei, with Senator Eugenia Duré characterizing him as “the cruelest” president since the restoration of democracy in 1983. Eduardo ‘Wado’ De Pedro echoed similar sentiments, labeling the libertarian as “brutal” and “cynical.” Milei has previously characterized the bill as “irresponsible” and asserts that it will undermine his efforts to achieve fiscal balance in Argentina.

In an interview conducted in August, he suggested that should his veto be overridden, he would escalate the issue to the judiciary as he seeks to eliminate Argentina’s persistent budget deficit. “There is no money,” his government has declared, a decision that has incited protests. The Congressional Budget Office estimates that the overall fiscal impact of these initiatives may vary between 2.4 trillion pesos, representing 0.28 percent of GDP, and 4.3 trillion pesos, which accounts for 0.51 percent of GDP. The reversal occurs at a critical juncture for the government, which is currently embroiled in a bribery scandal involving the National Disability Agency, allegedly implicating Presidential Chief-of-Staff Karina Milei, who is both the head of state’s sister and closest ally. Milei assumed office in December 2023, having brandished a live chainsaw during his victorious election campaign to represent his commitment to drastically reduce state expenditures. He has halted public works initiatives, terminated the employment of tens of thousands of civil servants, dismantled state agencies, and curtailed assistance.

In 2024, Argentina’s struggling economy achieved its first budget surplus in 14 years, while annual inflation decreased to 39.4 percent in June, a significant reduction from 211 percent at the close of 2023 and 118 percent the previous year. However, the measures were attributed to pushing millions more individuals into poverty during the first half of 2024, resulting in tens of thousands taking to the streets in protest.