U.S. ECONOMY > State & Federal Finance > The Budgeting Process > The Annual Budget Process

Line Item Veto

The 104th Congress granted this authority to the President beginning January 1, 1997 for a period of at least eight years. This tool allows the President to cancel spending or tax breaks from large bills he has already signed into law, with certain restrictions. The Congress can disapprove the President's action, but must do so by a two-thirds vote.