The Federal Line Item Veto Experiment: After the Supreme Court Ruling,What's Next?

The federal line item veto has ceased to exist, thanks to the Supreme Court's June 1998 ruling invalidating the expansion of the president's rescission authority that was contained in the Line Item Veto Act. This article reviews the application of the Act during 1997, its effect on spending and the deficit, the judicial reaction to its use, and the prospects for the restoration of some version of the power. President Clinton was quite restrained in the use of his new power, with the exception of his cancellations in the Military Construction appropriation bill; these were ultimately restored by the Congress. Because of the president's restraint, the Line Item Veto Act had a miniscule affect on spending and the deficit; total cancellations represented less than .04 percent of FY98 discretionary budget authority. Ultimately, the Supreme Court held that the Act violated Article I, Section 7 because it created a Constituionally impermissable way for the president to change laws. There is no clear fallback position for supporters of the Act; alternatives are either difficult to enact, hard to administer, or too weak to be considered an effective substitute. Given the problems in enacting any alternative, it may be that the federal line item veto will end up only as a historical anomaly.