Line Item Veto Act
PL 104-130 (S.4), enacted 04/09/1996

110 STAT. 1200 
PUBLIC LAW 104-130—APR. 9, 1996 
Public Law 104-130 
104th Congress 
An Act 
Apr. 9, 1996 
To give the President line item veto authority with respect to appropriations, 
[S 4] 
new direct spending, and hmited tax benefits. 
Be it enacted by the Senate and House of Representatives 
of 
Line Item Veto 
the United States of America in Congress assembled. 
Act. 
2 u s e 681 note. 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Line Item Veto Act". 
SEC. 2. LINE ITEM VETO AUTHORITY. 
(a) IN GENERAL.—Title X of the Congressional Budget and 
Impoundment Control Act of 1974 (2 U.S.C. 681 et seq.) is amended 
by adding at the end the following new part: 
"PART C—LINE ITEM VETO 
"LINE ITEM VETO AUTHORITY 
2 use 691. 
"SEC. 1021. (a) IN GENERAL.—Notwithstanding the provisions 
of parts A and B, and subject to the provisions of this part, the 
President may, with respect to any bill or joint resolution that 
has been signed into law pursuant to Article I, section 7, of the 
Constitution of the United States, cancel in whole— 
"(1) any dollar amount of discretionary budget authority; 
"(2) any item of new direct spending; or 
"(3) £iny limited tax benefit; 
if the President— 
"(A) determines that such cancellation will— 
"(i) reduce the Federal budget deficit; 
"(ii) not impair any essential Government functions; 
and 
"(iii) not harm the national interest; and 
"(B) notifies the Congress of such cancellation by transmit-
ting a special message, in accordance with section 1022, within 
five calendar days (excluding Sundays) after the enactment 
of the law providing the dollar amount of discretionary budget 
authority, item of new direct spending, or limited tax benefit 
that was canceled. 
"(b) IDENTIFICATION OF CANCELLATIONS.—In identifying dollar 
amounts of discretionary budget authority, items of new direct 
spending, and limited tax benefits for cancellation, the President 
shall— 
"(1) consider the legislative history, construction, and pur-
poses of the law which contains such dollar amounts, items, 
or benefits; 
PUBLIC LAW 104-130—APR. 9, 1996 
110 STAT. 1201 
"(2) consider any specific sources of information referenced 
in such law or, in the absence of specific sources of information, 
the best available information; and 
"(3) use the definitions contained in section 1026 in apply-
ing this part to the specific provisions of such law. 
"(c) EXCEPTION FOR DISAPPROVAL BILLS.—The authority granted 
by subsection (a) shall not apply to any dollar amount of discre-
tionary budget authority, item of new direct spending, or limited 
tax benefit contained in any law that is a disapproval bill as 
defined in section 1026. 
"SPECIAL MESSAGES 
"SEC. 1022. (a) IN GENERAL.—For each law from which a can- Congress. 
cellation has been made under this part, the President shall trans- 2 USC 69ia. 
mit a single special message to the Congress. 
"(b) CONTENTS.— 
"(1) The special message shall specify— 
"(A) the dollar amount of discretionary budget author-
ity, item of new direct spending, or limited tax benefit 
which has been canceled, and provide a corresponding ref-
erence number for each cancellation; 
"(B) the determinations required under section 1021(a), 
together with any supporting material; 
"(C) the reasons for the cancellation; 
"(D) to the maximum extent practicable, the estimated 
fiscal, economic, and budgetary effect of the cancellation; 
"(E) all facts, circumstances and considerations relating 
to or bearing upon the cancellation, and to the maximum 
extent practicable, the estimated effect of the cancellation 
upon the objects, purposes and programs for which the 
canceled authority was provided; and 
"(F) include the adjustments that will be made pursu-
ant to section 1024 to the discretionary spending limits 
under section 601 and an evaluation of the effects of those 
adjustments upon the sequestration procedures of section 
251 of the Balanced Budget and Emergency Deficit Control 
Act of 1985. 
"(2) In the case of a cancellation of any dollar amount 
of discretionary budget authority or item of new direct spending, 
the special message shall also include, if applicable— 
"(A) any account, department, or establishment of the 
Government for which such budget authority was to have 
been available for obligation and the specific project or 
governmental functions involved; 
"(B) the specific States and congressional districts, if 
any, affected by the cancellation; and 
"(C) the total number of cancellations imposed during 
the current session of Congress on States and congressional 
districts identified in subparagraph (B). 
"(c) TRANSMISSION OF SPECIAL MESSAGES TO HOUSE AND SEN-
ATE.— 
"(1) The President shall transmit to the Congress each 
special message under this part within five calendar days 
(excluding Sundays) after enactment of the law to which the 
cancellation applies. Each special message shall be transmitted 
to the House of Representatives and the Senate on the same 
calendar day. Such special message shall be delivered to the 
110 STAT. 1202 
PUBLIC LAW 104-130—APR. 9, 1996 
Clerk of the House of Representatives if the House is not 
in session, and to the Secretary of the Senate if the Senate 
is not in session. 
Federal Register, 
"(2) Any special message transmitted under this part shall 
publication. 
be printed in the first issue of the Federal Register published 
after such transmittal. 
"CANCELLATION EFFECTIVE UNLESS DISAPPROVED 
2 use 691b. 
" S E C 1023. (a) IN GENERAL.—The cancellation of any dollar 
amount of discretionary budget authority, item of new direct spend-
ing, or limited tax benefit shall take effect upon receipt in the 
House of Representatives and the Senate of the special message 
notifying the Congress of the cancellation. If a disapproval bill 
for such special message is enacted into law, then all cancellations 
disapproved in that law shall be null and void and any such dollar 
amount of discretionary budget authority, item of new direct spend-
ing, or limited tax benefit shall be effective as of the original 
date provided in the law to which the cancellation applied. 
"(b) 
COMMENSURATE REDUCTIONS IN DISCRETIONARY BUDGET 
AUTHORITY.—Upon the cancellation of a dollar amount of discre-
tionary budget authority under subsection (a), the total appropria-
tion for each relevant account of which that dollar amount is a 
part shall be simultaneously reduced by the dollar amount of that 
cancellation. 
"DEFICIT REDUCTION 
2 use 691c. 
"SEC. 1024. (a) IN GENERAL.— 
"(1) DISCRETIONARY BUDGET AUTHORITY.—OMB shall, for 
each dollar amount of discretionary budget authority and for 
each item of new direct spending canceled from an appropria-
tion law under section 1021(a)— 
"(A) reflect the reduction that results from such can-
cellation in the estimates required by section 251(a)(7) 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985 in accordance with that Act, including an 
estimate of the reduction of the budget authority and the 
reduction in outlays flowing from such reduction of budget 
authority for each outyear; and 
"(B) include a reduction to the discretionary spending 
limits for budget authority and outlays in accordance with 
the Balanced Budget and Emergency Deficit Control Act 
of 1985 for each applicable fiscal year set forth in section 
601(a)(2) by amounts equal to the amounts for each fiscal 
year estimated pursuant to subparagraph (A). 
"(2) 
DIRECT SPENDING AND LIMITED TAX BENEFITS.—(A) 
OMB shall, for each item of new direct spending or limited 
tax benefit canceled from a law under section 1021(a), estimate 
the deficit decrease caused by the cancellation of such item 
or benefit in that law and include such estimate as a separate 
entry in the report prepared pursuant to section 252(d) of 
the Balanced Budget and Emergency Deficit Control Act of 
1985. 
"(B) OMB shall not include any change in the deficit result-
ing from a cancellation of any item of new direct spending 
or limited tax benefit, or the enactment of a disapproval bill 
for any such cancellation, under this part in the estimates 
PUBLIC LAW 104-130—APR. 9, 1996 
110 STAT. 1203 
and reports required by sections 252(b) and 254 of the Balanced 
Budget and Emergency Deficit Control Act of 1985. 
"(b) ADJUSTMENTS TO SPENDING LIMITS.—After ten calendar 
days (excluding Sundays) after the expiration of the time period 
in section 1025(b)(1) for expedited congressional consideration of 
a disapproval bill for a special message containing a cancellation 
of discretionary budget authority, 0MB shall make the reduction 
included in subsection (a)(1)(B) as part of the next sequester report 
required by section 254 of the Balanced Budget and Emergency 
Deficit Control Act of 1985. 
"(c) EXCEPTION.—Subsection (b) shall not apply to a cancellation 
if a disapproval bill or other law that disapproves that cancellation 
is enacted into law prior to 10 calendar days (excluding Sundays) 
after the expiration of the time period set forth in section 1025(b)(1). 
"(d) CONGRESSIONAL BUDGET OFFICE ESTIMATES.—AS soon as 
practicable after the President makes a cancellation from a law 
under section 1021(a), the Director of the Congressional Budget 
Office shall provide the Committees on the Budget of the House 
of Representatives and the Senate with an estimate of the reduction 
of the budget authority and the reduction in outlays flowing from 
such reduction of budget authority for each outyear. 
"EXPEDITED CONGRESSIONAL CONSIDERATION OF DISAPPROVAL BILLS 
"SEC. 1025. (a) RECEIPT AND REFERRAL OF SPECIAL MESSAGE.— 2 use 69id. 
Each special message transmitted under this part shall be referred 
to the Committee on the Budget and the appropriate committee 
or committees of the Senate and the Committee on the Budget 
and the appropriate committee or committees of the House of Rep-
resentatives. Each such message shall be printed as a document 
of the House of Representatives. 
"(b) TIME PERIOD FOR EXPEDITED PROCEDURES.— 
"(1) There shall be a congressional review period of 30 
calendar days of session, beginning on the first calendar day 
of session after the date on which the special message is 
received in the House of Representatives and the Senate, during 
which the procedures contained in this section shall apply 
to both Houses of Congress. 
"(2) In the House of Representatives the procedures set 
forth in this section shall not apply after the end of the period 
described in paragraph (1). 
"(3) If Congress adjourns at the end of a Congress prior 
to the expiration of the period described in paragraph (1) and 
a disapproval bill was then pending in either House of Congress 
or a committee thereof (including a conference committee of 
the two Houses of Congress), or was pending before the Presi-
dent, a disapproval bill for the same special message may 
be introduced within the first five calendar days of session 
of the next Congress and shall be treated as a disapproval 
bill under this part, and the time period described in paragraph 
(1) shall commence on the day of introduction of that dis-
approval bill. 
"(c) INTRODUCTION OF DISAPPROVAL BILLS.—(1) In order for 
a disapproval bill to be considered under the procedures set forth 
in this section, the bill must meet the definition of a disapproval 
bill and must be introduced no later than the fifth calendar day 
of session following the beginning of the period described in sub-
section (b)(1). 
110 STAT. 1204 
PUBLIC LAW 104-130—APR. 9, 1996 
"(2) In the case of a disapproval bill introduced in the House 
of Representatives, such bill shall include in the first blank space 
referred to in section 1026(6)(C) a list of the reference numbers 
for all cancellations made by the President in the special message 
to which such disapproval bill relates. 
Reports. 
"(d) CONSIDERATION IN THE HOUSE OF REPRESENTATIVES.—(1) 
Any committee of the House of Representatives to which a dis-
approval bill is referred shall report it without amendment, and 
with or without recommendation, not later than the seventh cal-
endar day of session after the date of its introduction. If any 
committee fails to report the bill within that period, it is in order 
to move that the House discharge the committee from further 
consideration of the bill, except that such a motion may not be 
made after the committee has reported a disapproval bill with 
respect to the same special message. A motion to discharge may 
be made only by a Member favoring the bill (but only at a time 
or place designated by the Speaker in the legislative schedule 
of the day after the calendar day on which the Member offering 
the motion announces to the House his intention to do so and 
the form of the motion). The motion is highly privileged. Debate 
thereon shall be limited to not more than one hour, the time 
to be divided in the House equally between a proponent and an 
opponent. The previous question shall be considered as ordered 
on the motion to its adoption without intervening motion. A motion 
to reconsider the vote by which the motion is agreed to or disagreed 
to shall not be in order. 
"(2) After a disapproval bill is reported or a committee has 
been discharged from further consideration, it is in order to move 
that the House resolve into the Committee of the Whole House 
on the State of the Union for consideration of the bill. If reported 
and the report has been available for at least one calendar day, 
all points of order against the bill and against consideration of 
the bill are waived. If discharged, all points of order against the 
bill and against consideration of the bill are waived. The motion 
is highly privileged. A motion to reconsider the vote by which 
the motion is agreed to or disagreed to shall not be in order. 
During consideration of the bill in the Committee of the Whole, 
the first reading of the bill shall be dispensed with. General debate 
shall proceed, shall be confined to the bill, and shall not exceed 
one hour equally divided and controlled by a proponent and an 
opponent of the bill. The bill shall be considered as read for amend-
ment under the five-minute rule. Only one motion to rise shall 
be in order, except if offered by the manager. No amendment 
to the bill is in order, except any Member if supported by 49 
other Members (a quorum being present) may offer an amendment 
striking the reference number or numbers of a cancellation or 
cancellations from the bill. Consideration of the bill for amendment 
shall not exceed one hour excluding time for recorded votes and 
quorum calls. No amendment shall be subject to further amend-
ment, except pro forma amendments for the purposes of debate 
only. At the conclusion of the consideration of the bill for amend-
ment, the Committee shall rise and report the bill to the House 
with such amendments as may have been adopted. The previous 
question shall be considered as ordered on the bill and amendments 
thereto to final passage without intervening motion. A motion to 
reconsider the vote on passage of the bill shall not be in order. 
PUBLIC LAW 104-130—APR. 9, 1996 
110 STAT. 1205 
"(3) Appeals from decisions of the Chair regarding apphcation 
of the rules of the House of Representatives to the procedure relat-
ing to a disapproval bill shall be decided without debate. 
"(4) It shall not be in order to consider under this subsection 
more than one disapproval bill for the same special message except 
for consideration of a similar Senate bill (unless the House has 
already rejected a disapproval bill for the same special message) 
or more than one motion to discharge described in paragraph (1) 
with respect to a disapproval bill for that special message. 
"(e) CONSIDERATION IN THE SENATE.— 
"(1) REFERRAL AND REPORTING.—Any disapproval bill intro-
duced in the Senate shall be referred to the appropriate commit-
tee or committees. A committee to which a disapproval bill 
has been referred shall report the bill not later than the seventh 
day of session following the date of introduction of that bill. 
If any committee fails to report the bill within that period, 
that committee shall be automatically discharged from further 
consideration of the bill and the bill shall be placed on the 
Calendar. 
"(2) DiSAPPROVAi. BILL FROM HOUSE.—When the Senate 
receives from the House of Representatives a disapproval bill, 
such bill shall not be referred to committee and shall be placed 
on the Calendar. 
"(3) CONSIDERATION OF SINGLE DISAPPROVAL BILL.—After 
the Senate has proceeded to the consideration of a disapproval 
bill for a special message, then no other disapproval bill origi-
nating in that same House relating to that same message 
shall be subject to the procedures set forth in this subsection. 
"(4) AMENDMENTS.— 
"(A) AMENDMENTS IN ORDER.—The only amendments 
in order to a disapproval bill are— 
"(i) an amendment that strikes the reference num-
ber of a cancellation from the disapproval bill; and 
"(ii) an amendment that only inserts the reference 
number of a cancellation included in the special mes-
sage to which the disapproval bill relates that is not 
already contained in such bill. 
"(B) WAIVER OR APPEAL.—An affirmative vote of three-
fifths of the Senators, duly chosen and sworn, shall be 
required in the Senate— 
"(i) to waive or suspend this paragraph; or 
"(ii) to sustain an appeal of the ruling of the Chair 
on a point of order raised under this paragraph. 
"(5) MOTION NONDEBATABLE.—A motion to proceed to 
consideration of a disapproval bill under this subsection shall 
not be debatable. It shall not be in order to move to reconsider 
the vote by which the motion to proceed was adopted or rejected, 
although subsequent motions to proceed may be made under 
this paragraph. 
"(6) LIMIT ON CONSIDERATION.—(A) After no more than 
10 hours of consideration of a disapproval bill, the Senate 
shall proceed, without intervening action or debate (except as 
permitted under paragraph (9)), to vote on the final disposition 
thereof to the exclusion of all amendments not then pending 
and to the exclusion of all motions, except a motion to reconsider 
or to table. 
110 STAT. 1206 
PUBLIC LAW 104-130—APR. 9, 1996 
"(B) A single motion to extend the time for consideration 
under subparagraph (A) for no more than an additional five 
hours is in order prior to the expiration of such time and 
shall be decided without debate. 
"(C) The time for debate on the disapproval bill shall be 
equally divided between the Majority Leader and the Minority 
Leader or their designees. 
"(7) DEBATE ON AMENDMENTS.—Debate on any amendment 
to a disapproval bill shall be limited to one hour, equally 
divided and controlled by the Senator proposing the amendment 
and the majority manager, unless the majority manager is 
in favor of the amendment, in which case the minority manager 
shall be in control of the time in opposition. 
"(8) No MOTION TO RECOMMIT.—A motion to recommit a 
disapproval bill shall not be in order. 
"(9) DISPOSITION OF SENATE DISAPPROVAL BILL.—If the Sen-
ate has read for the third time a disapproval bill that originated 
in the Senate, then it shall be in order at any time thereafter 
to move to proceed to the consideration of a disapproval bill 
for the same special message received from the House of Rep-
resentatives and placed on the Calendar pursuant to paragraph 
(2), strike all after the enacting clause, substitute the text 
of the Senate disapproval bill, agree to the Senate amendment, 
and vote on final disposition of the House disapproval bill, 
all without any intervening action or debate. 
"(10) CONSIDERATION OF HOUSE MESSAGE.—Consideration 
in the Senate of all motions, amendments, or appeals necessary 
to dispose of a message from the House of Representatives 
on a disapproval bill shall be limited to not more than four 
hours. Debate on each motion or amendment shall be limited 
to 30 minutes. Debate on any appeal or point of order that 
is submitted in connection with the disposition of the House 
message shall be limited to 20 minutes. Any time for debate 
shall be equally divided and controlled by the proponent and 
the majority manager, unless the majority manager is a pro-
ponent of the motion, amendment, appeal, or point of order, 
in which case the minority manager shall be in control of 
the time in opposition. 
"(f) CONSIDERATION IN CONFERENCE.— 
"(1) CONVENING OF CONFERENCE.—In the case of disagree-
ment between the two Houses of Congress with respect to 
a disapproval bill passed by both Houses, conferees should 
be promptly appointed and a conference promptly convened, 
if necessary. 
"(2) 
HOUSE 
CONSIDERATION.—(A) Notwithstanding 
any 
other rule of the House of Representatives, it shall be in order 
to consider the report of a committee of conference relating 
to a disapproval bill provided such report has been available 
for one calendar day (excluding Saturdays, Sundays, or legal 
holidays, unless the House is in session on such a day) and 
the accompanying statement shall have been filed in the House. 
"(B) Debate in the House of Representatives on the con-
ference report and any amendments in disagreement on any 
disapproval bill shall each be limited to not more than one 
hour equally divided and controlled by a proponent and an 
opponent. A motion to further limit debate is not debatable. 
A motion to recommit the conference report is not in order, 
PUBLIC LAW 104-130—APR. 9, 1996 
110 STAT. 1207 
and it is not in order to move to reconsider the vote by which 
the conference report is agreed to or disagreed to. 
"(3) SENATE CONSIDERATION.—Consideration in the Senate 
of the conference report and any amendments in disagreement 
on a disapproval bill shall be limited to not more than four 
hours equally divided and controlled by the Majority Leader 
and the Minority Leader or their designees. A motion to 
recommit the conference report is not in order. 
"(4) LIMITS ON SCOPE.—(A) When a disagreement to an 
amendment in the nature of a substitute has been referred 
to a conference, the conferees shall report those cancellations 
that were included in both the bill and the amendment, and 
may report a cancellation included in either the bill or the 
amendment, but shall not include any other matter. 
"(B) When a disagreement on an amendment or amend-
ments of one House to the disapproval bill of the other House 
has been referred to a committee of conference, the conferees 
shall report those cancellations upon which both Houses agree 
and may report any or all of those cancellations upon which 
there is disagreement, but shall not include any other matter. 
"DEFINITIONS 
"SEC. 1026. As used in this part: 
2 USC 69le. 
"(1) APPROPRIATION LAW.—The term 'appropriation law' 
means an Act referred to in section 105 of title 1, United 
States Code, including any general or special appropriation 
Act, or any Act making supplemental, deficiency, or continuing 
appropriations, that has been signed into law pursuant to Arti-
cle I, section 7, of the Constitution of the United States. 
"(2) CALENDAR DAY.—The term 'calendar day* means a 
standard 24-hour period beginning at midnight. 
"(3) CALENDAR DAYS OF SESSION.—The term 'calendar days 
of session' shall mean only those days on which both Houses 
of Congress are in session. 
"(4) CANCEL.—The term 'cancel' or 'cancellation' means— 
"(A) with respect to any dollar amount of discretionary 
budget authority, to rescind; 
"(B) with respect to any item of new direct spending— 
"(i) that is budget authority provided by law (other 
than an appropriation law), to prevent such budget 
authority from having legal force or effect; 
"(ii) that is entitlement authority, to prevent the 
specific legal obligation of the United States from hav-
ing legal force or effect; or 
"(iii) through the food stamp program, to prevent 
the specific provision of law that results in an increase 
in budget authority or outlays for that program from 
having legal force or effect; and 
"(C) with respect to a limited tax benefit, to prevent 
the specific provision of law that provides such benefit 
from having legal force or effect. 
"(5) DIRECT SPENDING.—The term 'direct spending" means— 
"(A) budget authority provided by law (other than an 
appropriation law); 
"(B) entitlement authority; and 
"(C) the food stamp program. 
i - 2 : QL 3 Part 2 
110 STAT. 1208 
PUBLIC LAW 104-130—APR. 9, 1996 
"(6) DISAPPROVAL BILL.—The term 'disapproval bill' means 
a bill or joint resolution which only disapproves one or more 
cancellations of dollar amounts of discretionary budget author-
ity, items of new direct spending, or limited tax benefits in 
a special message transmitted by the President under this 
part and— 
"(A) the title of which is as follows: 'A bill disapproving 
the cancellations transmitted by the President on 
', 
the blank space being filled in with the date of transmission 
of the relevant special message and the public law number 
to which the message relates; 
"(B) which does not have a preamble; and 
"(C) which provides only the following after the enact-
ing clause: That Congress disapproves of cancellations 
', the blank space being filled in with a list by 
reference number of one or more cancellations contained 
in the President's special message, *as transmitted by the 
President in a special message on 
', the blank 
space being filled in with the appropriate date, 'regarding 
.', the blank space being filled in with the public 
law number to which the special message relates. 
"(7) DOLLAR AMOUNT OF DISCRETIONARY BUDGET AUTHOR-
ITY.—(A) Except as provided in subparagraph (B), the term 
'dollar amount of discretionary budget authority' means the 
entire dollar amount of budget authority— 
"(i) specified in an appropriation law, or the entire 
dollar amount of budget authority required to be allocated 
by a specific proviso in an appropriation law for which 
a specific dollar figure was not included; 
"(ii) represented separately in any table, chart, or 
explanatory text included in the statement of managers 
or the governing committee report accompanying such law; 
"(iii) required to be allocated for a specific program, 
project, or activity in a law (other than an appropriation 
law) that mandates the expenditure of budget authority 
from accounts, programs, projects, or activities for which 
budget authority is provided in an appropriation law; 
"(iv) represented by the product of the estimated 
procurement cost and the total quantity of items specified 
in an appropriation law or included in the statement of 
managers or the governing committee report accompanying 
such law; and 
"(v) represented by the product of the estimated 
procurement cost and the total quantity of items required 
to be provided in a law (other than an appropriation law) 
that mandates the expenditure of budget authority from 
accounts, programs, projects, or activities for which budget 
authority is provided in an appropriation law. 
"(B) The term 'dollar amount of discretionary budget 
authority does not include— 
"(i) direct spending; 
"(ii) budget authority in an appropriation law which 
funds direct spending provided for in other law; 
"(iii) any existing budget authority rescinded or can-
celed in an appropriation law; or 
"(iv) any restriction, condition, or limitation in an 
appropriation law or the accompanying statement of man-
PUBLIC LAW 104-130—APR. 9, 1996 
110 STAT. 1209 
agers or committee reports on the expenditure of budget 
authority for an account, program, project, or activity, or 
on activities involving such expenditure. 
"(8) ITEM OF NEW DIRECT SPENDING.—The term 'item of 
new direct spending' means any specific provision of law that 
is estimated to result in an increase in budget authority or 
outlays for direct spending relative to the most recent levels 
calculated pursuant to section 257 of the Balanced Budget 
and Emergency Deficit Control Act of 1985. 
"(9) LIMITED TAX BENEFIT.—(A) The term 'limited tax bene-
fit' means— 
"(i) any revenue-losing provision which provides a Fed-
eral tax deduction, credit, exclusion, or preference to 100 
or fewer beneficiaries under the Internal Revenue Code 
of 1986 in any fiscal year for which the provision is in 
effect; and 
"(ii) any Federal tax provision which provides tem-
porary or permanent transitional relief for 10 or fewer 
beneficiaries in any fiscal year from a change to the 
Internal Revenue Code of 1986. 
"(B) A provision shall not be treated as described in 
subparagraph (A)(i) if the effect of that provision is that— 
"(i) all persons in the same industry or engaged in 
the same type of activity receive the same treatment; 
"(ii) all persons owning the same type of property, 
or issuing the same tj^De of investment, receive the same 
treatment; or 
"(iii) any difference in the treatment of persons is 
based solely on— 
"(I) in the case of businesses and associations, 
the size or form of the business or association involved; 
"(II) in the case of individuals, general demo-
graphic conditions, such as income, marital status, 
number of dependents, or tax return filing status; 
"(III) the amount involved; or 
"(IV) a generally-available election under the 
Internal Revenue Code of 1986. 
"(C) A provision shall not be treated as described in 
subparagraph (A)(ii) if— 
"(i) it provides for the retention of prior law with 
respect to all binding contracts or other legally enforceable 
obligations in existence on a date contemporaneous with 
congressional action specifying such date; or 
"(ii) it is a technical correction to previously enacted 
legislation that is estimated to have no revenue effect. 
"(D) For purposes of subparagraph (A)— 
"(i) all businesses and associations which are related 
within the meaning of sections 707(b) and 1563(a) of the 
Internal Revenue Code of 1986 shall be treated as a single 
beneficiary; 
"(ii) all qualified plans of an employer shall be treated 
as a single beneficiary; 
"(iii) all holders of the same bond issue shall be treated 
as a single beneficiary; and 
"(iv) if a corporation, partnership, association, trust 
or estate is the beneficiary of a provision, the shareholders 
of the corporation, the partners of the partnership, the 
110 STAT. 1210 
PUBLIC LAW 104-130—APR. 9, 1996 
members of the association, or the beneficiaries of the 
trust or estate shall not also be treated as beneficiaries 
of such provision. 
"(E) For purposes of this paragraph, the term 'revenue-
losing provision' means any provision which results in a reduc-
tion in Federal tax revenues for any one of the two following 
periods— 
"(i) the first fiscal year for which the provision is 
effective; or 
"(ii) the period of the 5 fiscal years beginning with 
the first fiscal year for which the provision is effective. 
"(F) The terms used in this paragraph shall have the 
same meaning as those terms have generally in the Internal 
Revenue Code of 1986, unless otherwise expressly provided. 
"(10) 0MB.—The term '0MB' means the Director of the 
Office of Management and Budget. 
"IDENTIFICATION OF LIMITED TAX BENEFITS 
2USC69if. 
"SEC. 1027. (a) STATEMENT BY JOINT TAX COMMITTEE.—The 
Joint Committee on Taxation shall review any revenue or reconcili-
ation bill or joint resolution which includes any amendment to 
the Internal Revenue Code of 1986 that is being prepared for 
filing by a committee of conference of the two Houses, and shall 
identify whether such bill or joint resolution contains any limited 
tax benefits. The Joint Committee on Taxation shall provide to 
the committee of conference a statement identifying any such lim-
ited tax benefits or declaring that the bill or joint resolution does 
not contain any limited tax benefits. Any such statement shall 
be made available to any Member of Congress by the Joint Commit-
tee on Taxation immediately upon request. 
"(b) STATEMENT INCLUDED IN LEGISLATION.—(1) Notwithstand-
ing any other rule of the House of Representatives or any rule 
or precedent of the Senate, any revenue or reconciliation bill or 
joint resolution which includes any amendment to the Internal 
Revenue Code of 1986 reported by a committee of conference of 
the two Houses may include, as a separate section of such bill 
or joint resolution, the information contained in the statement 
of the Joint Committee on Taxation, but only in the manner set 
forth in paragraph (2). 
Applicability. 
"(2) The separate section permitted under paragraph (1) shall 
read as follows: 'Section 1021(a)(3) of the Congressional Budget 
and Impoundment Control Act of 1974 shall 
apply to 
.', with the blank spaces being filled in with— 
"(A) in any case in which the Joint Committee on Taxation 
identifies limited tax benefits in the statement required under 
subsection (a), the word 'only' in the first blank space and 
a list of all of the specific provisions of the bill or joint resolution 
identified by the Joint Committee on Taxation in such state-
ment in the second blank space; or 
"(B) in any case in which the Joint Committee on Taxation 
declares that there are no limited tax benefits in the statement 
required under subsection (a), the word 'not' in the first blank 
space and the phrase 'any provision of this Act' in the second 
blank space. 
"(c) PRESIDENT'S AUTHORITY.—If any revenue or reconciliation 
bill or joint resolution is signed into law pursuant to Article I, 
section 7, of the Constitution of the United States— 
PUBLIC LAW 104-130—APR. 9, 1996 
110 STAT. 1211 
"(1) with a separate section described in subsection (b)(2), 
then the President may use the authority granted in section 
1021(a)(3) only to cancel any limited tax benefit in that law, 
if any, identified in such separate section; or 
"(2) without a separate section described in subsection 
(b)(2), then the President may use the authority granted in 
section 1021(a)(3) to cancel any limited tax benefit in that 
law that meets the definition in section 1026. 
"(d) CONGRESSIONAL IDENTIFICATIONS OF LIMITED TAX BENE-
FITS.—There shall be no judicial review of the congressional identi-
fication under subsections (a) and (b) of a limited tax benefit in 
a conference report.". 
SEC. 3. JUDICIAL REVIEW. 
2 USC 692. 
(a) EXPEDITED REVIEW.— 
(1) Any Member of Congress or any individual adversely 
affected by part C of title X of the Congressional Budget and 
Impoundment Control Act of 1974 may bring an action, in 
the United States District Court for the District of Columbia, 
for declaratory judgment and injunctive relief on the ground 
that any provision of this part violates the Constitution. 
(2) A copy of any complaint in an action brought under 
paragraph (1) shall be promptly delivered to the Secretary 
of the Senate and the Clerk of the House of Representatives, 
and each House of Congress shall have the right to intervene 
in such action. 
(3) Nothing in this section or in any other law shall infringe 
upon the right of the House of Representatives to intervene 
in an action brought under paragraph (1) without the necessity 
of adopting a resolution to authorize such intervention. 
(b) APPEAL TO SUPREME COURT.—Notwithstanding any other 
provision of law, any order of the United States District Court 
for the District of Columbia which is issued pursuant to an action 
brought under paragraph (1) of subsection (a) shall be reviewable 
by appeal directly to the Supreme Court of the United States. 
Any such appeal shall be taken by a notice of appeal filed within 
10 calendar days after such order is entered; and the jurisdictional 
statement shall be filed within 30 calendar days after such order 
is entered. No stay of an order issued pursuant to an action brought 
under paragraph (1) of subsection (a) shall be issued by a single 
Justice of the Supreme Court. 
(c) EXPEDITED CONSIDERATION.—It shall be the duty of the 
District Court for the District of Columbia and the Supreme Court 
of the United States to advance on the docket and to expedite 
to the greatest possible extent the disposition of any matter brought 
under subsection (a). 
SEC. 4. CONFORMING AMENDMENTS. 
(a) SHORT TITLES.—Section 1(a) of the Congressional Budget 
and Impoundment Control Act of 1974 is amended by— 
2 USC 621 note. 
(1) striking "and" before "title X" and inserting a period; 
(2) inserting "Parts A and B of before "title X"; and 
(3) inserting at the end the following new sentence: "Part 
C of title X may be cited as the 'Line Item Veto Act of 1996'.". 
(b) TABLE OF CONTENTS.—The table of contents set forth in 
section Kb) of the Congressional Budget and Impoundment Control 
Act of 1974 is amended by adding at the end the following: 
88 Stat. 297. 
110 STAT. 1212 
PUBLIC LAW 104-130—APR. 9, 1996 
"PART C—LINE ITEM VETO 
"Sec. 1021. Line item veto authority. 
"Sec. 1022. Special messages. 
"Sec. 1023. Cancellation effective unless disapproved. 
"Sec. 1024. Deficit reduction. 
"Sec. 1025. Expedited congressional consideration of disapproval bills. 
"Sec. 1026. Definitions. 
"Sec. 1027. Identification of limited tax benefits.". 
(c) EXERCISE OF RULEMAKING POWERS.—Section 904(a) of the 
2 use 621 note. 
Congressional Budget Act of 1974 is amended by striking "and 
1017" and inserting", 1017, 1025, and 1027". 
2 u s e 691 note. 
SEC. 5. EFFECTIVE DATES. 
This Act and the amendments made by it shall take effect 
and apply to measures enacted on the earlier o
f
— 
(1) the day after the enactment into law, pursuant to 
Article I, section 1, of the Constitution of the United States, 
of an Act entitled "An Act to provide for a seven-year plan 
for deficit reduction and achieve a balanced Federal budget."; 
or 
(2) January 1, 1997; 
and shall have no force or effect on or after January 1, 2005. 
Approved April 9, 1996. 
L E G I S L A T I V E H I S T O R Y — S . 4 (H.R. 
2): 
HOUSE REPORTS: Nos. 104-11, Pt. 1 (Comm. on Rules) and Pt. 2 (Comm. on Gov-
ernment Reform and Oversight) both accompanying H.R. 2, and 
104-491 (Comm. of Conference). 
SENATE REPORTS: Nos. 104-9 (Comm. on the Budget) and 104-13 (Comm. on 
Grovernmental Affairs). 
CONGRESSIONAL RECORD: 
Vol. 141 (1995): Feb. 2, 3, 6, H.R. 2 considered and passed House. 
Mar. 20-23, S. 4 considered and passed Senate. 
May 17, considered and passed House, amended, in lieu of 
H.R. 2. 
Vol. 142 (1996): Mar. 27, Senate agreed to conference report. 
Mar. 28, House agreed to conference report pursuant to H. 
Res. 391. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Apr. 9, Presidential remarks and statement.