Line Item Veto Passed

On April 9, the President signed the Line Item Veto Act, 2 U.S.C. Secs. 691-692. The Act authorizes the President to "cancel" any dollar amount of discretionary budget authority, any item of new direct spending, or any limited tax benefit. Essentially, this limits the veto authority to discretionary spending, legislatively mandated increases in entittlements and the food stamp program, and tax changes that benefit less than 100 persons. The President must determine that the cancellation will reduce the budget deficit, not impair essential governmental functions, and not harm the national interest, and the President must notify Congress of the cancellation not later than five days after the law containing the cancelled item was enacted. The cancellation is effective immediately upon receipt by Congress of notice of the cancellation, and Congress can override the cancellation only by passing a law disapproving the cancellation.

The Act provides for expedited judicial review of the Act, with initial review in the District Court of the District of Columbia and then appeal directly to the Supreme Court. On the day the Act was signed, the National Treasury Employees Union sued to declare it unconstitutional.

The Act goes into effect on January 1, 1997.