Argentina Cabinet Head Gets US$66 Daily Fine

ARGENTINA · POLITICS AND EDUCATION

A federal judge has fined Javier Milei’s cabinet chief for each day the university funding law goes unapplied. The ruling lands as students prepare to march on Congress and the government seeks a budget deal with rectors.

A federal judge in Buenos Aires has imposed a daily fine of ARS 100,000 (about US$66) on Argentina’s cabinet chief. Judge Martín Cormick ruled on Wednesday, 14 October, that President Javier Milei’s government is not complying with the university funding law.

The case tests whether courts can force extra spending onto Milei’s budget surplus, the core of an economic programme backed by Washington. The ruling came the day before the fifth Federal University March, called for 4 p.m. on Thursday, 15 October, outside Congress.

Why the Judge Imposed a Daily Fine

The fine falls on Diego Santilli, named cabinet chief in June, who coordinates the ministers and controls budget allocations. El Cronista and Parlamentario reported that the judge based this on the powers the constitution and the budget law give that office.

Cormick heads federal administrative court No. 11 in Buenos Aires, which hears cases against the national state. He called the fine a first stage and warned that the amount and the officials covered could change.

The National Interuniversity Council (CIN), which groups the rectors of public universities, asked the judge to act once his deadlines expired. CIN president Franco Bartolacci said, as quoted by El Cronista, that the key point was holding a specific official responsible.

Over a 30-day month that adds up to ARS 3 million (about US$2,000), tiny next to the sums in dispute. Conversions in this article use the open.er-api.com rate of ARS 1,514.57 per US dollar on 15 October.

How the University Funding Law Reached This Point

Law 27.795 orders inflation-linked pay updates for university teachers and staff and a recovery of student grants. Congress passed it in 2025 over Milei’s veto, but his Decree 759/2025 made it conditional on Congress naming funding sources.

The CIN and the University of Buenos Aires (UBA), the country’s largest university, took the government to court. Cormick’s injunction of December 2025 was upheld on appeal, and the Supreme Court rejected the government’s last appeal on 25 June.

On 22 September the judge set a five-day compliance deadline, and on 30 September he renewed it under threat of fines. On Tuesday, 6 October, he declared the decree’s key clause unconstitutional and ordered the law applied immediately.

The government has appealed that ruling, but Cormick refused to suspend the injunction while the appeal is heard. In September he took official inflation of 312.19% from December 2023 to June 2026, a quadrupling of prices, as the pay yardstick.

Earlier coverage is in the court’s first order to apply the law and September’s protests against disability and university cuts. For context on the players, see Argentina’s politics explained and who dominates Argentina.

What the Government Is Offering Universities

Presidential spokesman Adrián Ravier denies any breach, and MDZ reported that he pointed to pay rises already granted to university staff. El Cronista and Minuto Neuquén reported that he wants any extra money to come from shifting existing budget items.

El Cronista and MDZ both reported that the government will appeal the fine. The Treasury Attorney’s Office, which defends the state in court, was still weighing its next step, El Cronista added.

At the same time, the government is negotiating informally with the universities. Minuto Neuquén reported on Wednesday that the talks include the employer pension contributions universities pay to ARCA, the federal tax agency.

Under the current schedule, that rate rises from 13.65% of payroll in 2026 to 14.52% in 2027. Keeping it lower would ease costs for public universities, where salaries take close to 90% of resources.

San Juan 8 and Jujuy al Momento reported on Thursday that the government wants changes to the funding law in return. Perfil reported that officials said in September they would raise funds, but would not simply accept the rectors’ figure.

Budget Fight and Thursday’s March in Congress

The CIN approved a request of ARS 11 trillion (about US$7.3 billion) for 2027 on 4 September. The budget bill sent by Milei sets aside about ARS 7.35 trillion (about US$4.9 billion), roughly a third less.

Finance Secretary Carlos Guberman presented the bill to the lower house’s budget committee on Tuesday, 13 October. Germán Martínez, who leads the Peronist Unión por la Patria bloc, asked that the cabinet chief be instructed to fund the universities.

Committee chair Bertie Benegas Lynch of Milei’s La Libertad Avanza replied, Perfil reported, that the committee cannot instruct the cabinet chief. The opposition proposed covering the cost by cutting Treasury obligations elsewhere in the same bill.

The fifth Federal University March holds its main rally at 4 p.m. on Thursday at Plaza Congreso, demanding the law be obeyed. The state workers’ union ATE has also called a 24-hour national strike and a march to Congress for the same day.

What It Means for US Readers

Milei’s budget surplus anchors an economic programme supported by the IMF and the US Treasury. Court orders that force new spending test that anchor, which holders of Argentine bonds and NYSE-listed shares such as YPF follow closely.

The fine itself is small at about US$66 a day, but the budget gap with the rectors is about US$2.4 billion. Visitors to Buenos Aires should expect closures around Congress on Thursday and allow extra travel time.

What Is Not Known

It is unclear whether Santilli must pay the fine personally or from his office’s budget. El Cronista reported that the fine targets him personally, while other outlets described it as imposed on the cabinet office.

No official has confirmed which changes to the funding law the government wants, or what contribution rate it would offer. It is also unknown when the appeals court will rule on the 6 October decision.

What Comes Next

The government must decide whether to pay, appeal or strike a deal with the rectors before the fine grows. The judge has said he may raise the amount or extend it to other officials if the delay continues.

In Congress, the budget committee keeps debating the 2027 bill, where any university deal would be written in. The size of Thursday’s march will show how much street pressure the government faces.

Frequently Asked Questions

Why was Argentina’s cabinet chief fined?

Judge Cormick found on 14 October that the government had not complied with an injunction to apply the university funding law. The fine of ARS 100,000 (about US$66) a day falls on the cabinet chief because he controls budget allocations.

What does the university funding law require?

Law 27.795 orders inflation-linked pay updates for university teachers and staff and a recovery of student grants. Milei’s government argues that Congress named no funding source and has appealed the rulings against it.

How big is the budget gap with the universities?

Rectors want ARS 11 trillion (about US$7.3 billion) for 2027, and the budget bill offers about ARS 7.35 trillion (about US$4.9 billion). That leaves a gap of roughly a third, or about US$2.4 billion.

Will the government pay the fine?

The government plans to appeal the fine, and its spokesman denies any breach of the law. The judge can raise the fine or add officials if the delay continues.

Does the march affect visitors to Buenos Aires?

The fifth Federal University March holds its main rally at 4 p.m. on Thursday, 15 October, at Plaza Congreso. A state workers’ strike and march the same day may add closures around Congress.

Sources: Universidad de Buenos Aires, ruling of 6 October; UBA, Fifth Federal University March notice; Consejo Interuniversitario Nacional, 2027 budget request; El Cronista; Crónica; MDZ; Parlamentario; El Tribuno; Conclusión; Minuto Neuquén; San Juan 8; Jujuy al Momento; Perfil, 13 October; Perfil, 15 October; El Eco de Tandil; El Cronista, 2027 budget (all accessed 15 October 2026).