Blue State Republicans Threaten Rebellion Over Senate Changes to Trump’s 'Big, Beautiful Bill'
SALT Republicans threaten to oppose Senate efforts on tax relief expansion amid high-cost living area concerns.
House Republicans representing districts in Democrat-controlled states are raising alarms as the Senate prepares to consider President Donald Trump's ambitious budget reconciliation package, dubbed the "one big, beautiful bill." These lawmakers are insisting that the bill must retain the House's provision to raise the state and local tax (SALT) deduction cap, a hot-button issue for constituents in high-tax areas like New York and California.
The SALT deduction, currently capped at $10,000, enables taxpayers in regions with steep state and local taxes to deduct some of those taxes from their federal returns. Blue-state Republicans have been vocal about the necessity of increasing this cap, framing it as essential tax relief for families facing the nation's highest living costs. "When did taxing income that’s already been taxed become a Republican ideal? Our party has always stood for lower taxes and a fair, commonsense tax code," emphasized Reps. Young Kim of California and Andrew Garbarino of New York, co-chairs of the House SALT Caucus. They assert that the higher cap is crucial not only for their constituents, but also for maintaining needed support from key professional groups including firefighters, police officers, and small business owners.
The debate comes at a precarious time for House leadership, which is operating with a razor-thin majority. The stability of the bill in its current form is in jeopardy if the Senate amends the SALT provisions—a point the SALT Caucus has been keen to highlight. "The Senate would be remiss to forget that the path to 218 — and delivering for the American people — runs through the SALT Caucus," members warned, referencing the number of votes required to pass legislation in the House.
The House-passed version of the budget bill boosts the SALT cap to $40,000, a significant increase intended to deliver substantial tax relief. This measure is just one component of a sweeping package aimed at addressing priorities on taxes, energy, defense, immigration, and the national debt—now surpassing $36 trillion. Rep. Nicole Malliotakis of New York, a member of the SALT Caucus and a key player in the House's tax policy negotiations, reiterated her firm stance: "The State and Local Tax (SALT) deduction negotiated in the House should NOT be altered by the Senate. It’s a Republican principle to allow taxpayers to keep more of their hard-earned money."
Other Republican lawmakers from blue states, such as Rep. Mike Lawler of New York, have similarly drawn red lines. Lawler directly warned against any move by the Senate to lower the cap, arguing, "No SALT. No Deal." He noted that, since the previous tax legislation, 29 states now exceed the current cap, making the issue one of fundamental fairness rather than partisan politics. "Since when do Republicans advocate for taxing you on top of taxes already paid?" Lawler questioned.
Despite the fierce advocacy from House Republicans, the issue appears to have little traction among Senate Republicans, none of whom represent high-tax, blue states. Senator John Thune, the GOP's No. 2 in the Senate, noted, "There really isn't a single Republican senator who cares much about the SALT issue... Most of our states, we're states that are low-tax states, and we don't think that low-tax states ought to be subsidizing high-tax states." Still, Senate leadership recognizes the need to balance any changes that may risk fracturing the delicate coalition in the House.
Speaker Mike Johnson echoed this reality, describing ongoing efforts to "keep SALT lawmakers calm" while communicating to Senate counterparts the importance of holding the line. "Look, the Senate Republicans are from red states, right? They feel the same way that I do about SALT, but I'm being very deliberate in reminding them that we have, again, this very delicate balance to maintain over here, and you've got to address the issue so that our members can take something home," Johnson told reporters.
As the Senate weighs its next moves, the outcome will likely hinge on whether blue-state House Republicans can convince their colleagues across the Capitol that maintaining the higher SALT cap is central not just to their political survival, but to the broader prospects of passing President Trump’s much-touted legislative package.
