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The Line Item Veto Act of 1996 enacted a line-item veto for the Federal government of the United States, but its effect was brief due to judicial review.

Public Law (P.L.) 104-130 was introduced by Senator Bob Dole on January 4, 1995, cosponsored by Senator John McCain and 29 other senators. Related House Bills included, , , and. The bill was signed into law by President Bill Clinton on April 9, 1996 and was immediately challenged in the United States District Court for the District of Columbia by a group of six senators, first among whom was Senator Robert Byrd (D-WV), where it was declared unconstitutional by District Judge Harry Jackson, a Reagan appointee, on April 10, 1997. The case was subsequently remanded by the Supreme Court of the United States with instructions to dismiss on the grounds that the senators had not suffered sufficient, particularized injury to maintain suit under Article III of the United States Constitution (i.e., the senators lacked standing). The case, Raines v. Byrd,, was handed down on June 26, 1997, and did not include a judgement on the constitutional grounds of the law.

It was used against one provision of the Balanced Budget Act of 1997 and two provisions of the Taxpayer Relief Act of 1997 before being challenged again in two separate cases; one by the City of New York, two hospital associations, one hospital, and two health care unions; the other by a farmers' cooperative from Idaho and an individual member of the cooperative. Senators Byrd, Moynihan, Levin, and Hatfield again opposed the law, this time through Amicus curiæ briefs.

Judge Thomas Hogan of the United States District Court for the District of Columbia combined the cases and declared the law unconstitutional on February 12, 1998. This ruling was subsequently affirmed on June 25, 1998 by a 6-3 decision of the Supreme Court of the United States in the case Clinton v. City of New York. Justices Breyer, Scalia, and O'Connor dissented. The ruling has been criticized by legal scholars.