Clinton Uses Veto

Setting up a minor political battle and a major constitutional test, the president used the new line-item veto power to strike a budget provision that would have given New York state a break on Medicaid funding and to cross out two special tax breaks - one for the sale of a sugar-beet refinery, the other involving financial institutions' overseas operations. An appeal of the veto is expected.

Setting up a minor political battle and a major constitutional test, the president used the new line-item veto power to strike a budget provision that would have given New York state a break on Medicaid funding and to cross out two special tax breaks - one for the sale of a sugar-beet refinery, the other involving financial institutions' overseas operations. An appeal of the veto is expected.