House GOP from blue states threaten to block Trump’s budget bill if Senate removes SALT cap increase from final version.

Blue State Republicans Defend Key Tax Relief Provision

Republican lawmakers from high-tax states are warning that they may oppose President Donald Trump’s budget bill if the Senate removes the House-approved increase to the State and Local Tax (SALT) deduction cap. The latest pushback reflects growing tension within the GOP over how to balance tax relief across economically diverse regions.

Members of the SALT Caucus, including Reps. Young Kim (R-Calif.) and Andrew Garbarino (R-N.Y.), emphasized the importance of the $40,000 cap approved in the House version of the sweeping budget reconciliation package. The current SALT deduction cap stands at $10,000. “Hardworking families we represent are penalized by the SALT cap,” they said in a joint statement. “This deal keeps the President’s commitment to fix this issue and has the support of firefighters, police, small businesses, and working Americans who keep our country moving.”

The deduction allows taxpayers in high-tax states to offset local and state tax payments on their federal filings. Blue state Republicans argue that removing the increase would amount to double taxation on their constituents, and they are pressing Senate Republicans to leave the House provision untouched.

Senate GOP Indifferent as Rift Widens

Despite the push from the House, Senate Republicans appear unmoved. Senate Majority Leader John Thune (R-S.D.) acknowledged the issue but downplayed its significance among Senate Republicans. “There really isn't a single Republican senator who cares much about the SALT issue,” Thune said, citing the predominance of low-tax states in the Senate GOP.

Rep. Mike Lawler (R-N.Y.) signaled that he may not support the bill if the Senate reverts the cap to $10,000. “This isn’t a red vs blue issue, it’s an issue of double taxation,” Lawler wrote on X. “No SALT. No Deal.”

Rep. Nicole Malliotakis (R-N.Y.), another member of the SALT Caucus and a key tax-writer in the House, also voiced firm opposition to Senate revisions. “The SALT deduction negotiated in the House should NOT be altered by the Senate,” she said, emphasizing that the House plan includes other cost-saving measures targeting waste, fraud, and abuse.

Speaker Mike Johnson (R-La.) acknowledged the political tightrope the GOP majority is walking. “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,” he told reporters. “You've got to address the issue so that our members can take something home.”

Trump’s budget bill seeks sweeping reforms across tax policy, energy, defense, immigration, and deficit reduction. But with the national debt surpassing $36 trillion, Senate negotiators are considering cutting provisions like the SALT cap increase to trim costs. Such a move could fracture Republican unity and jeopardize passage in the House, where the GOP holds a narrow majority.

The House SALT Caucus made their stance clear: “The Senate would be remiss to forget that the path to 218 — and delivering for the American people — runs through the SALT Caucus.” The coming days are expected to test party cohesion and determine whether the final bill can survive interchamber negotiations.