2026 Budget: Milei's government proposes eliminating the mobility of Family Allowances and granting discretionary increases.

Article 73 of the 2026 Budget eliminates key sections of Law 27,160, which guarantee the automatic mobility of Family Allowances . This means that benefits—such as the Child Allowance, the AUH, prenatal benefits, and school benefits —would no longer be adjusted for inflation and would depend on discretionary decisions by the Executive Branch.

Pension lawyer Aníbal Paz explained that this modification would allow the government to " adjust allocations below inflation to achieve an adjustment ." In other words, the value of the AUH and other benefits could remain frozen for months while prices continue to rise.

In December 2023, the Child Allowance was $20,661. In August 2025, it reached $56,475 (+173.3%), while the AUH (Underpaid Income) climbed to $112,942 (+446.6%), following an increase granted by decree in 2023. This scheme, based on specific decisions by the Executive Branch, explains part of the reduction in poverty in informal families, but also reveals the discretionary nature of the benefit.

Until now, the AUH and the Allocations were adjusted for inflation via Decree 274/24. With the 2026 Budget, this guarantee disappears, leaving millions of families at the mercy of the political will of the current government.

The Family Allowance system covered 10.4 million people in November 2023. In May 2025, the number dropped to 9.4 million. Of that million fewer, the largest decline was among formal workers: the Child Allowance for registered wage earners fell from 3.9 million to 2.9 million.

The reduction was no coincidence. The government lowered the family income threshold for accessing the benefit : in December 2023, the limit was $3,960,000, and in March 2024, it was reduced to $2,154,806. This decision excluded hundreds of thousands of working families, compounded by the decline in formal employment.

For those who exceed the income limit and cannot collect benefits, relief lies in income tax deductions . A worker with one child has a non-taxable minimum of $2,520,530 gross, while for those without children it is $2,329,750. This mechanism creates a regressive system: families with less wealth depend on the discretion of the Executive Branch, while those with higher incomes enjoy clearer tax benefits.

The debate now centers on Congress, where the ruling party must defend a bill that, according to experts, not only reduces social security coverage but also opens the door to a silent adjustment in the benefits received by millions of children, mothers, and workers.