On Tuesday, President Donald Trump made a significant attempt to rally key House Republicans from blue states in an effort to push through a major tax bill. However, sources reported to CNBC that his visit did not sway members of the SALT Caucus, who are opposed to the legislation due to its inadequate provisions for SALT deductions, which are crucial for their constituents.
The opposition from the SALT Caucus poses a serious threat to the tax legislation, which both Trump and House Speaker Mike Johnson (R-La.) aim to have passed before the upcoming Memorial Day weekend. The central issue at stake is the tax deduction for state and local taxes on federal income tax returns. Lawmakers are concerned that voter dissatisfaction with the current cap on these deductions could jeopardize the Republican Party's ability to maintain control of the House of Representatives in the 2026 midterm elections.
In 2017, a Republican tax bill introduced a cap of $10,000 on SALT deductions, which was viewed as a political maneuver against Democratic-leaning states in the Northeast and California. These regions typically incur much higher state and local taxes compared to their Republican-leaning counterparts. The new tax bill proposes to increase this cap to $30,000, yet this amount still falls short for several GOP lawmakers from these blue states.
Despite Trump's efforts, reports indicate that five members of the SALT Caucus remain firm in their opposition to the current bill following his visit. Republican leadership responded by proposing to slightly increase the cap to $40,000. However, this revised cap would only apply to individuals earning $751,600 per year or less, and it would remain effective for four years before reverting to $30,000 for those making $30,000 or less.
During his visit, Trump addressed the SALT Caucus directly, urging them to support the bill. According to NBC News, he bluntly told Rep. Mike Lawler, a New York Republican and one of the holdouts, “I know your district better than you do.” Trump added, “If you lose because of SALT, you were going to lose anyway.” This comment has been corroborated by sources who spoke with CNBC.
In a subsequent statement on X, Rep. Young Kim (R-Calif.) expressed her and her colleagues’ support for Trump's call for unity within the House Republican Conference. Alongside Lawler and fellow GOP Reps. Andrew Garbarino and Nick Lalota from New York, as well as Rep. Tom Kean Jr. from New Jersey, Kim emphasized that a fair SALT deduction is crucial for the hardworking families they represent. They stated, "We hope his remarks today motivate the Speaker to advance a SALT proposal that delivers meaningful relief for our middle-class constituents."
Trump and Johnson’s mission to pass the tax bill has also encountered hurdles from conservative factions within the party, who are adamant about cutting the federal budget deficit and reducing expenditures on the Medicaid health coverage program. During his visit, Trump notably warned the caucus, “Don’t f--- around with Medicaid,” highlighting the tension between fiscal conservatism and the needs of vulnerable populations.
As the deadline for passing the tax bill approaches, it remains to be seen whether Trump’s attempts to unify the party and address the concerns of the SALT Caucus will be successful. The outcome will likely have significant implications for both the party's legislative agenda and its prospects in the upcoming midterm elections.
