Argentina’s Senate has voted overwhelmingly to reject President Javier Milei’s veto of a bill mandating automatic distribution of federal funds to provinces, delivering a significant setback to the administration amid economic struggles and recent electoral losses.

The upper house tally stood at 59 votes to overturn the veto, nine to uphold it, and three abstentions—surpassing the two-thirds threshold of 46 votes. The measure now heads to the lower house, where a similar supermajority is required to nullify the veto fully.

This follows the Chamber of Deputies’ rejection on September 17 of Milei’s vetoes on separate bills boosting funding for public universities and children’s hospitals, both of which await Senate debate, where Milei’s allies hold less sway.

The funding proposal targets National Treasury Contributions, currently allocated at the executive’s discretion for emergencies like COVID-19 responses and droughts. Supporters argue the bill ensures a steady flow to provinces, reducing political leverage.

Milei vetoed it on September 13, five days after a bruising defeat to Peronism in Buenos Aires province elections, contending the funds’ flexible nature distinguishes them from standard co-participation revenues.