President Donald Trump visited the House Republican caucus on Capitol Hill in Washington, D.C. on May 20, 2025, in an effort to rally support for a significant tax bill that aims to address the state and local tax (SALT) deductions. Despite his efforts, key Republican lawmakers from blue states remain opposed, asserting that the proposed changes do not sufficiently benefit their constituents.
The resistance from the “SALT Caucus” has become a crucial hurdle for the proposed legislation, which Trump, in collaboration with House Speaker Mike Johnson, hopes to push through before the upcoming Memorial Day weekend. During his address, Trump highlighted the necessity for the caucus members to reconsider their stance, especially given the potential political repercussions that voter dissatisfaction with the current SALT deduction cap could have on Republican prospects in the 2026 midterm elections.
In 2017, a tax bill restricted the SALT deduction to $10,000, a move criticized for disproportionately affecting residents in Democratic-leaning states. The current legislative proposal aims to raise this cap to $30,000, a figure that some Republican lawmakers still deem insufficient. Following Trump’s visit, reports indicate that at least five members of the SALT Caucus continue to oppose the bill, even after Republican leadership’s suggestion to increase the cap to $40,000.
Party leaders are proposing that these caps apply only to individuals earning $751,600 or less per year and that the cap might revert to $30,000 after a four-year period. Trump’s message during the meeting, urging the SALT Caucus to “let it go,” underscores the urgency of achieving a consensus.
This ongoing discussion highlights the complexities and challenges of formulating tax legislation that balances the interests of diverse states. It remains to be seen if Trump’s engagement can sway opposing lawmakers, and with the pressure of upcoming elections, there is a strong incentive for the party to find common ground on this important issue.