To amend the Line Item Veto Act of 1996 to add the requirement that if Federal budget is in surplus then the vetoed item shall be used to reduce the public debt.

Amends the Line Item Veto Act of 1996 to authorize the President to use the line item veto if the President determines that a cancellation will reduce the Federal budget deficit (current law) or, if the budget is in surplus, be used to reduce the public debt.