New York GOP Divided Over SALT Deduction Debate

Washington, D.C. — A standoff among House Republicans over the state and local tax deduction (SALT) is threatening President Donald Trump’s legislative agenda. This conflict centers around how to adjust the SALT cap, previously set at $10,000 by the 2017 tax law.

Rep. Jason Smith, R-Mo., chair of the tax-writing House Ways and Means Committee, finds himself at odds with several New York Republicans. Some of these members are advocating for a higher cap, showing a significant divide among Republicans from high-tax states and those representing areas with lower taxes.

This tension escalated during a meeting on Tuesday when pro-SALT Republicans asked Rep. Nicole Malliotakis, R-N.Y., to leave their discussion, suspecting that she was aligned with Smith. A source said, “She wasn’t invited and is not part of our negotiation.” Meanwhile, Malliotakis defended her position, emphasizing her role as a Ways and Means committee member advocating for middle-class relief.

Hours later, Malliotakis supported the proposal to raise the SALT cap to $30,000, which has been met with resistance from other New York Republicans, including Reps. Elise Stefanik, Mike Lawler, Nick LaLota, and Andrew Garbarino. They argue that this figure is insufficient and have pushed for caps as high as $40,000 for individuals.

This dispute could jeopardize Trump’s broader agenda, as these four New York Republicans wield significant power in the narrow House majority. House Speaker Mike Johnson is tasked with mediating the conflicting interests, especially as the 2026 midterm elections loom.

Malliotakis said that while negotiation is essential, the bill must also garner enough support from the Ways and Means Committee. “There will be no changes unless I and the committee agree,” she stated.

The House Republicans from blue states continue to negotiate, with expressions of urgency concerning the timeline. Malliotakis noted, “The longer this takes and the closer to Memorial Day we get, the low-sodium diets of many of my colleagues on Ways and Means is growing.” Meanwhile, leadership aims to resolve differences over SALT in the coming days.

As they debate, factions within the party have become more polarized, with some members like Rep. Jeff Van Drew, R-N.J., encouraging compromise on the $30,000 proposal. He expressed understanding of high-tax constituents while urging for a bipartisan path forward.

Ultimately, the challenge remains to balance the demands of Republicans from varying districts without losing sight of broader party goals. The seriousness of these negotiations reflects not only legislative strategies but also political calculations as the GOP prepares for future elections.