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In a 6 to 3 decision, the court held that the line-item veto law violates a constitutional requirement that legislation be passed by both houses of Congress and presented in its entirety to the president for signature or veto.

Passage of the legislation in 1996 and its implementation in 1997 climaxed more than a century of struggle by presidents for this new authority. It was a rare unilateral yielding of power by Congress to the chief executive, prompted by Congress's increasing concern over its own lack of fiscal discipline. President Clinton, who had line-item veto powers as governor of Arkansas, signed the bill with relish and moved quickly, although cautiously, to begin trimming spending bills.

But the judicial branch, looking to constitutional rather than political or fiscal priorities, took a far dimmer view of the power swap.

Unlike earlier laws giving the president discretionary spending authority, "this act gives the president the unilateral power to change the text of duly enacted statutes," Justice John Paul Stevens wrote for the majority.

Such line-item vetoes are "the functional equivalent of partial repeals of acts of Congress," he said. But "there is no provision in the Constitution that authorizes the president to enact, to amend or to repeal statutes," he added.

http://www.washingtonpost.com/wp-srv/national/longterm/supcourt/stories/wp062698.htm