Legislative Line Item Veto Act of 2025
- Bill Number
- H.R. 1979
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Economics and Public Finance
- Status
- Introduced
- Latest Action
- 2025-03-10: Referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2025-05-21T14:05:14Z
AI-Generated Summary
Purpose
The Legislative Line Item Veto Act of 2025 aims to give the President limited authority to propose canceling specific portions of new federal spending or tax benefits in recently enacted laws, while requiring Congress to approve these cancellations through an expedited process. This is intended to promote deficit reduction by targeting wasteful or unnecessary items without altering the overall bill, and the authority expires on October 1, 2031.
Key Provisions
- Presidential Proposal Authority (Section 1011): Within 30 days of a bill's enactment (or shortly after congressional recesses), the President may propose canceling:
- Dollar amounts of discretionary budget authority (funding levels set by Congress for programs, not automatic entitlements).
- Items of direct spending (new provisions increasing mandatory spending, like entitlements, beyond current baselines).
- Targeted tax benefits (tax breaks, deductions, credits, exclusions, or preferences benefiting only one specific entity, such as a single company or group, rather than the general public).
- Proposals are sent via a "special message" to Congress, limited to 10 per bill (or 20 for large omnibus measures), detailing the amounts, reasons, fiscal impacts, and ensuring no duplicates.
- Expedited Congressional Review (Section 1012): Congress must introduce an "approval bill" within 5 days of receiving the message. Consideration is fast-tracked:
- In the House: Committees report without changes in 7 days; limited debate (5 hours); no amendments; discharge motions if stalled.
- In the Senate: Motion to proceed is non-debatable; total debate limited to 2 hours; no amendments or recommitments.
- The approval bill can only approve or reject the exact proposals; if passed by both chambers, it enacts the cancellations.
- Temporary Deferral (Section 1013): While proposals are under review (up to 30 days, extendable once), the President can withhold the targeted funding or suspend the spending/tax benefits, but must release them early if the review doesn't advance the bill's goals.
- Identification of Targeted Tax Benefits (Section 1014): Leaders of the House Ways and Means and Senate Finance Committees identify specific tax breaks in revenue bills before final passage, limiting presidential targets to those listed.
- Treatment and Oversight (Sections 1015-1016): Cancellations only take effect if approved; otherwise, they are void. The Comptroller General reports on any improper continued withholdings. Canceled amounts must reduce the federal deficit (with adjustments to budget resolutions and spending caps).
- Definitions (Section 1017): Key terms include "discretionary budget authority" (Congress-set spending limits, excluding entitlements), "item of direct spending" (new mandatory spending increases), and "targeted tax benefit" (narrow tax relief for one beneficiary, like a single business, not broad policies).
- Sense of Congress (Section 4): Discourages the President from using proposals to pressure lawmakers on votes.
Significant Changes to Existing Law
This bill amends Title X of the Congressional Budget and Impoundment Control Act of 1974, which currently regulates presidential impoundments (withholding of funds). It replaces much of Part B (rescissions) and eliminates Part C (deferrals), introducing a new "legislative line-item veto" framework. Unlike prior law, it:
- Expands presidential targeting to include direct spending and targeted tax benefits, not just discretionary funds.
- Requires affirmative congressional approval via a simple, dedicated bill, rather than automatic veto-like power (addressing the 1998 Supreme Court ruling that struck down a previous line-item veto as unconstitutional).
- Adds CBO estimates for spending items and formal identification of tax benefits.
- Technical updates include revising budget analysis rules and table of contents for consistency.
The changes apply only to laws enacted after the bill's passage.
Potential Impacts
- On Government Agencies: Could result in sudden funding cuts to specific programs or projects, disrupting operations if approved, but provides short-term withholding only during review. Agencies reliant on discretionary or targeted funding (e.g., defense, infrastructure) may face uncertainty.
- On Citizens: Might reduce access to new federal benefits or programs (e.g., targeted grants or entitlements) and eliminate narrow tax breaks, potentially saving taxpayer money through deficit reduction but affecting individuals or groups benefiting from those items (e.g., specific industry subsidies).
- On International Relations: Minimal direct impact, though cuts to foreign aid or international programs could indirectly affect U.S. diplomacy or alliances if targeted.
- Broader Fiscal Effects: Promotes targeted deficit reduction (estimated savings reported by OMB and CBO), but risks politicized use, potentially slowing implementation of new laws.
Main Stakeholders Affected
- President and Executive Branch: Gains proposal power but limited by congressional approval and message caps; OMB and agencies must implement changes.
- Congress: Retains ultimate control through expedited votes; budget committees adjust resolutions, while tax committees identify targets.
- Federal Agencies and Programs: Face potential funding disruptions for specific initiatives.
- Taxpayers and Beneficiaries: General public benefits from deficit cuts; specific entities (e.g., businesses with targeted tax breaks, entitlement recipients) may lose advantages.
- Oversight Bodies: CBO provides estimates; Comptroller General monitors compliance; Joint Committee on Taxation assists with tax identifications.
Notable Legal, Constitutional, or Political Implications
- Legal: Shifts from executive impoundment restrictions to a collaborative process, ensuring cancellations require bicameral approval and presentment (aligning with constitutional requirements under Article I, Section 7). Includes safeguards like no amendments and limited debate to prevent gridlock, with GAO enforcement for violations.
- Constitutional: Designed to withstand challenges like the 1998 Clinton v. City of New York ruling by making the veto "legislative" (Congress approves specifics), preserving separation of powers while enhancing executive input on spending details.
- Political: Could empower presidents to challenge congressional "pork-barrel" spending or narrow tax favors, altering budget negotiations and increasing partisanship (e.g., majority leaders control introduction). The expiration date allows future Congresses to reassess; the anti-abuse sense-of-Congress provision aims to prevent coercion but may spark enforcement debates. Overall, it balances fiscal discipline with legislative primacy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-03-10: Referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-10: Referred to the Committee on the Budget, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-03-10: Introduced in House
- 2025-03-10: Introduced in House
Bill Versions
- Legislative Line Item Veto Act of 2025 — issued 2025-03-10 — PDF (29 pages)