The Line Item Veto Act (Act) gave the President the power to “cancel in whole” three types of provisions signed into law. Specifically, the Act allowed for the cancellation of (1) any dollar amount of discretionary budget authority; (2) any item of new direct spending; or (3) any limited tax benefit. The effect of the cancellation was the prevention of the item from having any legal force or effect. President Clinton (defendant) invoked the Act to cancel a provision in the Balanced Budget Act of 1997 that would have allowed New York to avoid repaying funds received under Title XIX of the Social Security Act. Individuals who would have benefitted under those provisions of the Social Security Act (plaintiffs) challenged the cancellation. The district court found that the Act was unconstitutional. The case came before the United States Supreme Court.