FILE PHOTO: Argentine President Javier Milei presides over the National Flag Day ceremony in Buenos Aires, Argentina June 20, 2025. REUTERS/Cristina Sille/ File Photo

BUENOS AIRES (Reuters) -Argentina's Congress on Thursday for the first time overturned a veto issued by President Javier Milei, raising the stakes for the libertarian leader as the country heads into consequential legislative elections.

The vote by the opposition-controlled Senate, which was 63 votes in favor and seven against, was the final push to overrule Milei's veto of a bill that increases spending and protections for people with disabilities.

The lower house in August first voted to overturn the veto.

Milei, who has dramatically shrunk government spending through a series of austerity measures, had said the bill would threaten the country's fiscal balance.

The congressional setback for Milei also comes after local media published audio recordings at the end of August allegedly of the then-chief of Argentina's disability agency, Diego Spagnuolo, discussing bribery and suggesting Milei's sister and chief of staff, Karina Milei, was getting kickback payments.

Spagnuolo was swiftly fired by the government and the president called the comments a "lie."

Congress' overturn of the presidential veto precedes legislative elections in the province of Buenos Aires this weekend and midterm elections in October. Milei, who currently has a small minority in Congress, needs to increase his seats to be able to keep his policies on track.

The last time Congress overturned a full presidential veto was in 2003 under President Eduardo Duhalde, according to local media outlets.

(Reporting by Walter Bianchi; Writing by Leila Miller; editing by Brendan O'Boyle and Cassandra Garrison)