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Milei’s Government Trades Subsidies and Works to Secure Provincial Votes

The administration is securing governors' backing by offering targeted electricity subsidies plus obras to pass Central Bank reform along with changes to the subsidy regime.

Overview

  • The national government struck deals with several governors, notably the Norte Grande block, that expand summer electricity aid for hot regions by raising the subsidized block from 300 to 550 kWh and promise public works to win congressional support.
  • Casa Rosada opened the Chamber of Deputies agenda to multiple provincial initiatives as a conciliatory gesture meant to translate local priorities into votes for priority reforms.
  • Economy Minister Luis Caputo and Diego Santilli have taken lead roles in the bargaining tables while several provinces, including Misiones and Salta, said they will negotiate “ley por ley” and are reorganizing their blocs to demand concrete concessions.
  • Tensions have grown inside the ruling coalition, with figures such as Patricia Bullrich calling for results to reach households, and governors warning that these targeted deals reshape the 2027 electoral map and the fight over proposals like PASO elimination.
  • The arrest in Bolivia of former communications adviser Fernando Cerimedo and President Milei’s public disavowal have created a reputational distraction that could complicate vote-building and increase opposition scrutiny as the government pursues tight-margin reforms.