Trump instructs House Republicans to determine a 'fair number' for SALT
After a meeting with the incoming president, New York Republicans announced that he expressed support for raising the cap on the SALT deduction.
TroibNews 
New York Republicans emerged from a meeting with Donald Trump at Mar-a-Lago on Saturday feeling confident that the incoming president supports increasing a crucial deduction for state and local taxes. They received direction from Trump: return to Congress and negotiate a “fair number.”
“The president certainly wants to increase the deduction for SALT to provide more relief, because he knows that our mayors and governors are crushing taxpayers,” said Rep. Nicole Malliotakis in an interview following the meeting. “He wants us to work on what would be a fair number.”
The SALT deduction has consistently posed challenges for lawmakers across party lines, particularly those from states with high property taxes like New York, California, and New Jersey. The 2017 Republican tax law imposed a $10,000 cap on the deduction, effectively raising taxes for many constituents. Ever since, lawmakers from both parties in these states have advocated for a resolution. Although they did not finalize any specific policy proposals for a significant party-line bill addressing taxes, energy, and border issues, the movement toward consensus on the SALT deduction represents significant progress for Republicans seeking to advance their priorities.
However, the effort faces intricate political challenges, as many GOP members from low-tax red states oppose the deduction in the context of spending cuts. Additionally, there is tension within the SALT caucus itself, where members have struggled to agree on what should be requested. Privately, House GOP leaders indicated to some Republicans that without a clear pathway for SALT, they cannot effectively plan the overall size of the final package or determine necessary spending cuts to accommodate it.
The SALT conversation unfolded in a meeting involving 16 members from New York, California, and New Jersey, along with Trump and two staff members. Rep. Nick Lalota expressed he left the meeting feeling “very optimistic” that Republicans would “find a fix on SALT.” Many attendees echoed this sentiment when speaking with PMG post-meeting, where they enjoyed coconut shrimp, pigs in a blanket, and sliders during their over hour-long discussion. While they mentioned various issues, including congestion pricing in New York and wildfires in California, SALT remained the primary focus.
“I think it’s great because the president can take this back and continue negotiations with our side, with the Senate side, and figure out what we can get done," said Rep. Claudia Tenney, confirming that Trump "wants us to find a number for him.”
“[Trump] said, look, come back with a number,” Rep. Michael Lawler added. “This is all negotiation to build consensus, so that’s obviously what our job is as members of Congress, and that’s what we’re going to do.”
Trump also appeared open to “indexing” the $10,000 cap on the SALT deduction, allowing it to adjust with inflation, according to Malliotakis.
“I’m confident that with his help, we will broker a deal, a good tax bill, that will help Long Islanders, New Yorkers, and Americans," LaLota stated.
During the Saturday evening gathering, House Republicans took photos with Trump as he inspired members with his agenda. Messages of unity and appreciation for Trump's leadership were prominent at a lavish dinner he hosted for Freedom Caucus members the night before at his resort.
However, the sense of unity at Mar-a-Lago had its limits. Trump excluded Rep. David Valadao, one of the 10 House Republicans who voted to impeach him after the January 6 Capitol insurrection, from the meeting with the California, New York, and New Jersey GOP members. Despite this perceived slight, Valadao will play a significant role in the reconciliation talks as a centrist Republican, leading one of the principal GOP caucus factions and serving as a senior appropriator.
SALT Republicans are also advocating to ensure that tougher rules surrounding an alternative minimum tax, which would diminish the value of the SALT deduction, do not return as planned in 2026.
Malliotakis suggested potentially capping the property tax aspect of the deduction to reduce the overall cost of the tax relief.
“What is the most relief we can get for our constituents that would be palatable to the other members of our conference so that we can get to the 218?” Malliotakis queried. “If we’re focusing on the middle class and ensuring that they’re the ones getting the relief, then we can come up with a number that would be fair.”
Sophie Wagner for TROIB News
“The president certainly wants to increase the deduction for SALT to provide more relief, because he knows that our mayors and governors are crushing taxpayers,” said Rep. Nicole Malliotakis in an interview following the meeting. “He wants us to work on what would be a fair number.”
The SALT deduction has consistently posed challenges for lawmakers across party lines, particularly those from states with high property taxes like New York, California, and New Jersey. The 2017 Republican tax law imposed a $10,000 cap on the deduction, effectively raising taxes for many constituents. Ever since, lawmakers from both parties in these states have advocated for a resolution. Although they did not finalize any specific policy proposals for a significant party-line bill addressing taxes, energy, and border issues, the movement toward consensus on the SALT deduction represents significant progress for Republicans seeking to advance their priorities.
However, the effort faces intricate political challenges, as many GOP members from low-tax red states oppose the deduction in the context of spending cuts. Additionally, there is tension within the SALT caucus itself, where members have struggled to agree on what should be requested. Privately, House GOP leaders indicated to some Republicans that without a clear pathway for SALT, they cannot effectively plan the overall size of the final package or determine necessary spending cuts to accommodate it.
The SALT conversation unfolded in a meeting involving 16 members from New York, California, and New Jersey, along with Trump and two staff members. Rep. Nick Lalota expressed he left the meeting feeling “very optimistic” that Republicans would “find a fix on SALT.” Many attendees echoed this sentiment when speaking with PMG post-meeting, where they enjoyed coconut shrimp, pigs in a blanket, and sliders during their over hour-long discussion. While they mentioned various issues, including congestion pricing in New York and wildfires in California, SALT remained the primary focus.
“I think it’s great because the president can take this back and continue negotiations with our side, with the Senate side, and figure out what we can get done," said Rep. Claudia Tenney, confirming that Trump "wants us to find a number for him.”
“[Trump] said, look, come back with a number,” Rep. Michael Lawler added. “This is all negotiation to build consensus, so that’s obviously what our job is as members of Congress, and that’s what we’re going to do.”
Trump also appeared open to “indexing” the $10,000 cap on the SALT deduction, allowing it to adjust with inflation, according to Malliotakis.
“I’m confident that with his help, we will broker a deal, a good tax bill, that will help Long Islanders, New Yorkers, and Americans," LaLota stated.
During the Saturday evening gathering, House Republicans took photos with Trump as he inspired members with his agenda. Messages of unity and appreciation for Trump's leadership were prominent at a lavish dinner he hosted for Freedom Caucus members the night before at his resort.
However, the sense of unity at Mar-a-Lago had its limits. Trump excluded Rep. David Valadao, one of the 10 House Republicans who voted to impeach him after the January 6 Capitol insurrection, from the meeting with the California, New York, and New Jersey GOP members. Despite this perceived slight, Valadao will play a significant role in the reconciliation talks as a centrist Republican, leading one of the principal GOP caucus factions and serving as a senior appropriator.
SALT Republicans are also advocating to ensure that tougher rules surrounding an alternative minimum tax, which would diminish the value of the SALT deduction, do not return as planned in 2026.
Malliotakis suggested potentially capping the property tax aspect of the deduction to reduce the overall cost of the tax relief.
“What is the most relief we can get for our constituents that would be palatable to the other members of our conference so that we can get to the 218?” Malliotakis queried. “If we’re focusing on the middle class and ensuring that they’re the ones getting the relief, then we can come up with a number that would be fair.”
Sophie Wagner for TROIB News
