Alarm bells are ringing again for Argentina’s film and television industry as President Javier Milei’s administration moves to potentially dismantle key funding mechanisms for the National Institute of Cinema and Audiovisual Arts (INCAA). A draft proposal, revealed this week, seeks to repeal articles guaranteeing dedicated funding for INCAA, primarily sourced from box office receipts. While the bill doesn’t explicitly dissolve the institute, industry representatives warn that removing its financial bedrock would severely weaken its ability to operate and support the nation’s audiovisual sector.
The move is the latest in a series of challenges facing INCAA under Milei, who assumed office in December 2023 promising a radical overhaul of the Argentine economy. His administration has signaled a commitment to slashing public spending, and cultural institutions have been squarely in the crosshairs. This latest proposal builds on earlier attempts to defund INCAA, which were met with widespread protests and a petition signed by prominent international filmmakers.
FIPCA, the Ibero-American Federation of Cinematographic and Audiovisual Production, has already launched a petition urging members of the Argentine Congress to reject the proposed changes, framing them as a potential “audiovisual blackout” for the country. The petition, gaining traction across Ibero-America, boasts signatures from a who’s who of the region’s creative elite, including Spanish director Pedro Almodóvar, Chilean filmmaker Andrés Wood, and Argentine star Adrian Suar.
“The future of Argentina’s audiovisual production is going through a critical moment,” FIPCA president Ignacio Rey told Variety. “The potential loss of its historic sources of financing places the industry at a crossroads that demands rigor: audiovisual production is not a decorative activity, but an industry that competes in global markets.”
The core of the issue lies in the proposed repeal of three articles of Argentina’s Film Law. These articles currently provide INCAA with a consistent revenue stream, including a 20% tax on movie tickets established 60 years ago, as well as two other revenue sources implemented in a 1994 reform. Without these dedicated funds, INCAA would be forced to rely on discretionary allocations from the National Treasury, leaving its future uncertain.
“This change could significantly limit the institute’s operational capacity and jeopardize the continuity of an industry that generates employment, exports services and contributes high value-added economic activity across the country,” FIPCA stated in its petition. Gabriela Sandoval, FIPCA vice president, explained the precarious situation, noting that INCAA currently allocates 66% of its income to salaries, leaving a limited portion for actual film and television production.
The potential consequences extend beyond production funding. The government’s austerity measures, already underway, include the suspension of operational funds for INCAA, effectively paralyzing its day-to-day activities. This encompasses the termination of contracts, cancellation of cell phone and messaging services, elimination of overtime pay, and the suspension of employee benefits. National film festivals, including the prestigious Mar del Plata International Film Festival, are also expected to be impacted, as is financial support for the release of national films.
The situation echoes concerns raised in other Latin American countries. Rey cited the example of Brazil, where a period of defunding for its film-TV body, ANCINE, between 2019 and 2022 led to a contraction in production and the closure of numerous companies. He contrasted this with the recent revitalization of the Brazilian industry following the reinstatement of incentives, culminating in the country’s Oscar win for “I’m Still Here” in 2025 and multiple nominations in 2026.
Diego F. Ramírez, FIPCA Vice President and a representative of 64-A Films, emphasized the global standard of public financing for the audiovisual sector. “The countries that lead global production combine support funds and tax incentives to attract investment, develop talent and compete in the global content economy,” he stated.
Milei’s initial attempt to dismantle INCAA through an omnibus bill in January 2024 failed to pass following significant public outcry and a similar petition from international filmmakers. This new proposal represents a renewed effort to achieve the same outcome, albeit through a different legislative route. The Argentine Senate is scheduled to debate the bill on , setting the stage for a critical showdown between the government and the country’s film and television community. The outcome will likely determine the future of Argentine cinema for years to come.
Beyond the immediate financial implications, the proposed cuts raise broader questions about the Milei administration’s commitment to cultural preservation and its vision for Argentina’s role in the global entertainment landscape. The fate of INCAA, and the industry it supports, hangs in the balance.
