BUENOS AIRES, July 8 (UPI) — Argentine President Javier Milei said his administration will introduce legislation to create a U.S.-style government shutdown mechanism that would halt Executive Branch spending once the approved budget is exhausted until Congress passes a new one.

Milei announced the proposal during an interview on the Neura streaming platform, saying the measure is intended to change how Argentina’s public administration operates.

“We are working on designing the Executive Branch shutdown, or rather the political shutdown,” Milei said Tuesday.

The president contended the proposal would prevent the government from spending after money in the approved budget has been used up.

“Once the budget is exhausted, no more money can be spent and the state shuts down,” he said.

Milei said the bill will be submitted to Congress, although he did not provide a timeline. He linked the proposal to another reform being pursued by his administration: changes to the charter of the Argentine Central Bank.

Milei said both initiatives are intended to establish permanent rules that prevent the government from financing public spending through money creation.

He said the revised central bank charter would explicitly prohibit the institution from financing the national treasury, and that violations would carry criminal penalties.

“In fact, the Criminal Code defines fraud. Fraud and counterfeiting currency are criminal offenses. We can even use parts of the existing Criminal Code,” Milei said.

He said the reforms are intended to safeguard the independence of the central bank and prevent future governments from using monetary issuance to finance fiscal deficits.

Milei also described the measures as part of a broader restructuring of the Argentine state.

“Today we began building the foundations to repair all the damage done to Argentines. … This is a package of reforms that will repair 91 years of fraud by politicians against decent politicians. It is a package of reforms that will make Argentina great again,” he said.

After the interview, Milei chaired a meeting at the presidential residence in Olivos to finalize details of the reform package. He later confirmed the meeting in a post on X.

“Foundations for the new golden era. Finalizing the details of the Central Bank charter reform, the foundations of the state shutdown, the new Capital Markets law and the beginning of insurance market deregulation,” Milei wrote.

The proposed shutdown mechanism is part of the administration’s broader economic strategy, which has emphasized maintaining a permanent fiscal balance and preventing the government from spending beyond available revenues.

The government has not released the text of the bill or explained how the mechanism would operate in practice.

It also has not specified how essential public services, including health care, public safety, education and the judiciary, would be affected if the budget were exhausted before Congress approved new funding.