Since taking office in December, Milei has fired 30,000 state employees, halted new public works contracts, and cut generous state subsidies for transport and energy in a bid to curb spending.
"The decision was made to move forward with the dismantling of institutes that serve absolutely no purpose, such as Inadi," said presidential spokesman Manuel Adorni, referring to the National Institute against Discrimination, Xenophobia and Racism.
The organization has offices across the country, employing 400 people, and fields some 2,500 complaints a year, according to its latest report.
The majority of those complaints come from the workplace or educational field, and are linked to disability, sexual orientation or gender.
"We would love for Inadi to be closed today -- that is not possible for administrative reasons," Adorni said.
"There are countless institutes that President Milei is determined to dismantle. The battle to reduce public spending is central to our government plan."
Ana Fornaro, co-founder of Agencia Presentes -- a regional media organization specialized in gender, diversity and rights issues -- said the decision "does not surprise us."
"This government has been especially cruel to the institutions that defend" diversity, she said.
In the past, Milei has accused Inadi of "ideological persecution" and wanting to "govern the way we speak," referring to discrimination for language perceived as offensive.
Milei, who describes himself as an "anarcho-capitalist" who is "above all for freedom," has said he is opposed to abortion and sex education, does not believe humans are responsible for climate change, and that there is no wage gap between men and women.
Among the many ministries he got rid of when taking office was the portfolio dealing with women, gender and diversity.
Diego Morales, director of litigation at the Center for Legal and Social Studies, said the decision to close Inadi was part of the government's plan "aimed at eliminating or limiting the capacities of human rights protection bodies in Argentina."
