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Blue State House Republicans issued an alarm Monday following reports of a sharp increase in state and local tax (salt) deduction caps by Senate GOP tax officers on President Donald Trump’s Mammoth Agenda bill.
“Think of this as the Senate’s response to the ‘mark of negotiation’: he died on arrival,” Senator Mike Lawler posted on X.
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LR: Mike Lawler, Donald Trump, John Tune. Salt Caucus Republicans are firing warning shots at the Senate, taking into account President Trump’s budget bill. (Getty/AP)
The Senate Finance Committee, which has jurisdiction over the tax, healthcare and other schism policy areas in President Donald Trump’s “Big Beautiful Building,” is set to release the Mammoth bill offering on Tuesday.
Senate Republicans are less interested in keeping the needs of the Blue State Republican cohort, given that Senate GOP members do not represent the Blue State. Of the tweaks and changes that come to rewrite the Senate tax package, salt is at the top of the list.
The salt deduction initially concluded with $10,000 for filers and single filers married under Trump’s 2017 Tax Cuts and Employment Act (TCJA), with GOP lawmakers from the frontline district on their mission to raise the current tax consultation cap.
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House Speaker Mike Johnson issued a statement regarding the shooting at the Israel Museum after holding a press conference on the passage of the tax and spending bill at the U.S. Capitol on May 22, 2025 in Washington. (Kevin Dietsch/Getty Images)
Conservatives wanted it to keep it up to help the president pay his first term tax cut, but the issue has become a rallying cry for House Republicans in New York and California, demanding relief for members in state and local taxable areas, such as big cities and surrounding suburbs.
They say the current cap on the House GOP bill is unnegotiable and only requires three “no” votes in the House.
However, the Senate Finance Committee is still formulating a twist on the bill, with the reduced salt cap not being set on stone.
A source familiar with ongoing negotiations told Fox News Digital that the $10,000 cap is merely a placeholder as the talk continues ahead of the full bill release. The source added: “The infuriated people are jumping over the guns and knowing that it is still in negotiations.”
Rep. Nicole Mariotakis, who represents parts of New York City and a member of the Ways and Means Committee, the House tax collection panel, opposed the Senate placeholder reversal.
“The $40,000 salt deduction was carefully negotiated with other tax provisions by the House and we all had to give a little to get a vote to pass a big beautiful bill.
“If we want to be a big tent party, we need to recognize that we have members representing the blue state with high taxes, which subsidize many red districts across the country, despite paying zero taxes.”
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Left: President Donald Trump. Right: Rep. Andrew Garbarino, RN.Y. (Left: Tasos Katopodis/Getty Images; Right: Tom Williams/CQ-Roll Call, Inc via Getty Images)
Increased salt caps have been a major line of sand for House Republicans in New York, New Jersey and California. He vowed to vote for the package unless the deduction increased, and warned that if no solution was found, GOP could lose his home.
Last minute negotiations leading up to the House vote last month brought CAP to $40,000 for both single and married filers, accounting for $500,000 a year.
The deduction drops for those making a deduction of $500,000 or more into a minimum $10,000 deduction. Both caps and income caps will increase by 1% each year from 2026 to 2033.
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Certainly, their support helped squeal the large bill through the houses that were advanced by a single vote margin. Now, Senate Republicans are sprinting to complete the bill’s shaping, trying to get the entire package back from the lower room to Trump’s desk by July 4th.
R-Calif, co-chairman of Salt Caucus. , Andrew Garbarino, Rn.Y. told Fox News Digital that the CAP negotiated “In honesty with the speakers, the White House must remain on the final bill.”
“In addition to supporting President Trump’s commitment to raising the salt cap, it is also praised by middle-class families, firefighters, law enforcement, small business owners, and hardworking Americans across the country,” they said in a joint statement. “Instead of already undermining the contract and putting the entire bill at risk, the Senate should work with us to keep its historic tax relief promise and realize the Republican agenda.”
Alex Miller is a writer for Fox News Digital, which covers the US Senate.
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