FISU was defunded at the beginning of 2025, following the elimination of the PAIS tax on December 23, 2024, a key decision in the deregulation and tax relief scheme promoted by the Executive.
Javier Milei's government finalizes the elimination of two new trust funds
FISU was defunded at the beginning of 2025, following the elimination of the PAIS tax on December 23, 2024, a key decision in the deregulation and tax relief scheme promoted by the Executive.
In line with its austerity plan and fiscal efficiency, the Government of Javier Milei is implementing the elimination of two new trust funds: the Socio-Urban Integration Fund (FISU) and the Scientific and Technological Promotion Fund (FONDOTEC). Both trusts, created in previous administrations, managed nearly $200 billion in previous years and were marked by an alarming lack of efficiency and transparency.
Presidential spokesperson Manuel Adorni announced the measure on his X account:
"The National Government eliminated the Trust Fund for Scientific and Technological Promotion (FONDOTEC) and the Socio-Urban Integration Fund (FISU). FONDOTEC only used 33 million of the more than 28 billion pesos allocated to it between 2022 and 2023. Meanwhile, it was found that FISU was buying contaminated land, awarding projects to cooperatives without a track record, and delaying their development. With these closures, 24 funds have already been eliminated by this administration. End."
At the Casa Rosada, they emphasize that the dissolution decree for FISU is already ready. The trust, which was led by Fernanda Miño—an activist from the Frente de Patria Grande, a space headed by the far-left representative, Juan Grabois—managed a total of $188.411 billion during 2024. It was created under Law 27.453 of 2018 and Decree 819 of 2019, with the aim of financing the urbanization of popular neighborhoods included in the RENABAP (National Registry of Popular Neighborhoods).
However, its operation caused serious doubts. Only in 2024, the fund allocated $4.938 billion to current expenses—such as salaries and services—and $28.707 billion to capital expenses, which included transfers to provinces, municipalities, and private entities. Current authorities point out that many of these projects were awarded to cooperatives without a proven track record and with unjustified delays in their execution. Additionally, purchases of contaminated land were detected.
Meanwhile, FONDOTEC, which was under the National Agency for the Promotion of Research, Technological Development, and Innovation, had revenues of $3.224 billion and current expenses of $1.145 billion in 2024. It was created by Law 23.877 of 1990 with the purpose of financing scientific projects through Treasury resources and external credits. However, over the last two years, it barely executed $33 million of the more than $28 billion allocated, which, according to official sources, shows a worrying under-execution and lack of tangible results.
Both eliminations are part of the fiscal ordering program agreed with the International Monetary Fund (IMF), within the framework of the recently granted US$20 billion agreement. The organization set December 2025 as the deadline for the definitive closure of all trusts, except for the one subsidizing natural gas for vulnerable households.
The immediate precedent was the elimination, in April, of the Federal Electric Transportation Trust Fund (FFTEF), which had a budget of over $49.474 billion in 2024. That fund was created in 1999 to expand the national 500-kilovolt network, but its execution also showed an inefficient use of public resources.
The measure also represents a new step in the redesign of the state trust scheme under the orbit of Sebastián Pareja, a trusted leader of Karina Milei, who currently leads the party structure of La Libertad Avanza. Pareja took control of the funds after the presidential change and actively collaborates in the purification of the state apparatus.