Milei government faces provincial lawsuits over pensions and funding

The national government under President Javier Milei has filed a constitutional challenge with the Argentine Supreme Court to block a Buenos Aires provincial law that would transfer the retirement‑contribution payments of roughly 20,000 workers from the national social‑security system ANSES to the provincial Institute of Social Security (IPS). The measure applies to employees of privately owned companies with a provincial majority and to certain private‑school staff, affecting entities such as ABSA, Aubasa, BAGSA, Centros de la Costa and CEAMSE. The government argues the province exceeded its constitutional competence, would deprive ANSES of resources, and cites a prior Supreme Court ruling that rejected a similar attempt.

At the same time, officials from Argentina’s northern provinces, including Formosa’s economy minister Jorge Ibáñez, have accused the Milei administration of withholding federal co‑participation funds, halting public‑work projects and redirecting fuel taxes that should support local infrastructure. Ibáñez said, “Hay provincias que estamos castigadas por el Gobierno central, no recibimos los fondos que nos corresponden,” and added, “Lo cobran, pero no lo envían a las provincias.” The federal Treasury, led by Luis Caputo, has retained and reassigned those funds, prompting further judicial action.