The President's New Budget Scalpel? 2025 Act Proposes Line-Item Veto for Specific Spending & Tax Cuts

Alright, buckle up, because there's a new bill in town, the 'Legislative Line Item Veto Act of 2025,' and it's looking to shake up how Washington handles the national checkbook. In a nutshell, this proposal would give the President the power to pinpoint specific spending items—think funding for particular government programs that Congress decides on yearly ('discretionary budget authority'), specific parts of ongoing mandatory spending like certain social program elements ('items of direct spending'), or narrowly focused tax breaks ('targeted tax benefits')—in bills after Congress has already passed them. The President could then send a 'special message' to Congress proposing to cancel these items. For these cuts to stick, Congress would have to pass a specific 'approval bill,' and any money saved is earmarked for reducing the federal deficit or boosting a surplus, as outlined in Section 2. The whole idea is to give the President a tool to snip out what they see as wasteful spending or overly narrow tax benefits without having to veto an entire piece of legislation.

So, What's the Big Deal with This 'Line-Item Veto'?

This isn't just a minor tweak; it's a potentially significant shift in how spending decisions get finalized. Here's how it would work: once a bill is signed into law, the President gets a 30-day window (or starting the first day Congress is back, if they're adjourned) to send Congress that 'special message' we talked about. This message, detailed in Section 2, has to lay out exactly what dollar amount or item is on the chopping block, which government agency and functions are affected, the reasons for the cut, and the estimated financial impact. The President can't just go wild, though – there's a cap of 10 such messages per regular bill, bumped up to 20 for those massive omnibus budget or appropriation bills. The stated goal, per Section 2? Any canceled funds 'shall be dedicated to deficit reduction or to increase a surplus.'

Congress on the Clock: The 'Approval Bill' Rush

Now, the President can't just unilaterally axe spending. Congress still gets a say, but the process is designed to be quick. According to Section 2, once that special message lands, the majority leader in both the House and Senate has five session days to introduce an 'approval bill.' This bill is basically a thumbs-up or thumbs-down on the President's proposed cuts. The legislation sets out some pretty specific rules for how these approval bills get handled in committee and on the floor, including limits on amendments and debate. So, while Congress has the final vote, they'll be doing it on an accelerated timeline. This could definitely change the usual back-and-forth of legislative negotiation and potentially streamline oversight, or some might argue, reduce it.

The President's Pause Button: Temporary Spending Freezes

Here's another interesting wrinkle: the bill gives the President 'deferral authority' (Section 2). This means the President can temporarily hit pause on spending that discretionary budget money or suspend those direct spending items or targeted tax benefits for up to 30 days while Congress mulls over the proposed cancellations. If needed, this pause can be extended once for another 30 days, but the President has to send Congress a heads-up message before the first 30 days are up. Imagine a local infrastructure project, a small business grant program, or benefits for a specific group suddenly having its funds frozen for a month or two – that’s the kind of real-world scenario this could create, causing delays and uncertainty. To keep an eye on this, the Comptroller General is tasked with reporting to Congress if any funds are still being held back after this deferral power has officially run out.

Targeting Tax Breaks: Who Decides What's 'Targeted'?

When it comes to tax breaks, the bill has a specific process. The President can only use this line-item veto on 'targeted tax benefits' if they've been officially identified as such within the legislation itself (Section 2). Who does the identifying? The chairpersons of the House Ways and Means Committee and the Senate Finance Committee are supposed to review revenue bills and provide a statement listing any such benefits. The Joint Committee on Taxation also has to list them in their revenue estimates. This is key because if a tax break isn't on that official list, it's off-limits for a line-item veto. This could be a straightforward way to flag narrow benefits, or, depending on how it plays out, it might become a point of contention over what gets defined as 'targeted' and what slips through the cracks, potentially shielded from this veto power.

The Fine Print: Expiration Date and a 'Please Play Nice' Clause

This new line-item veto power wouldn't be permanent; Section 2 states the authority 'shall have no force or effect on or after October 1, 2031.' So, it's essentially a multi-year experiment. The bill also includes some technical changes to existing budget laws, like requiring the Congressional Budget Office (CBO) to estimate savings from these proposed cancellations (Section 3). Finally, there's a 'Sense of Congress' in Section 4, which basically says the President and their team shouldn't use the threat of these cancellations to pressure members of Congress on their votes. While that's a nice sentiment, a 'sense of Congress' is more of a strong suggestion than an enforceable rule, leaving open questions about how this power might actually influence political dynamics in the real world.