MAYOR GIULIANI ANNOUNCES THAT FEDERAL DISTRICT COURT
HAS STRUCK DOWN THE FEDERAL LINE ITEM VETO ACT
Action Was Brought By City of New York To Protect Medicaid Funding In Budget Bill
Ruling in a case brought by the City of New York, City of New York vs. Clinton, a Federal District Court Judge in Washington, D.C., today struck down as unconstitutional the Line Item Veto Act adopted by Congress in 1996. Co-plaintiffs with the City were the New York City Health and Hospitals Corporation, the Greater New York Hospital Association, Jamaica Hospital Medical Center, and two unions with health care members, District 37 of AFSCME and Local 1199. The decision protects New York City hospitals against a loss of federal Medicaid funds that could have been as great as $2.6 billion.
"Today's decision is a great victory for the people of the City, the State and for the Constitution of the United States," Mayor Giuliani said. "I want to reiterate my strong support for the concept of the Presidential Line Item Veto. It was clear that the specific statute under which it was created was unconstitutional. The Court agreed with us in its decision today.
"There are many individuals and organizations to thank for their efforts in helping the City to reverse a decision that would have limited Medical coverage for the poor and uninsured," the Mayor continued. " I want to thank Senator D'Amato for his work in passing the Medicaid law that saved the Medicaid program, and Senator Moynihan for his ongoing efforts to ensure that the Line Item Veto was tested in court to see that it met the full measure of the Constitution. I also want to thank the support of Stanley Hill and District Council 37, Dennis Rivera and Local 1199, Ken Raske and the Greater New York Hospital Association, and Jamaica Hospital Medical Center for joining us as co-plaintiffs in this suit."
The Judge, Thomas F. Hogan, agreed with the City that the Line Item Veto Act violates the Constitution by changing the procedure for enactment of Federal laws. Under the Constitution, a bill passed by Congress may be signed into law or vetoed in its entirety by the President.
But, as the City argued and Judge Hogan held, the Constitution does not allow the President to sign the law and then pick and choose items to veto separately. To create a presidential line item veto will require a constitutional amendment.
The decision has a tremendous practical impact on the City. For several years, the federal government has been threatening to withdraw Medicaid funds for New York's health care system because of a dispute about how New York funds health care for the poor. In the Balanced Budget Act of 1997, Congress had accepted New York's position and guaranteed its funds. President Clinton signed the Balanced Budget Act, but then wielded the line item veto to remove the protections given New York by Congress.
When it adopted the Line Item Veto Act, Congress built in a provision for expedited judicial review. Accordingly, Judge Hogan's decision is immediately appealable to the United States Supreme Court. If the government chooses to appeal, it is anticipated that a final decision by the Supreme Court on the constitutionality of the line item veto could come as early as June 1998.
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