Clinton v. City of New York

The Line Item Veto Act let the President "cancel in whole" specific spending items, new direct-spending provisions, or limited tax benefits after signing a bill into law. President Clinton (defendant) used this power to cancel a Balanced Budget Act provision that would have let New York keep certain federal healthcare funds; individuals who would have benefited (plaintiffs) challenged the cancellation, the district court found the Act unconstitutional, and the Supreme Court took the case.