A Medicaid for SALT Trade Off Could Get Us to Yes on Trump’s Big Beautiful Bill

President Donald Trump traveled to Capitol Hill Tuesday morning to deliver a message to House Republicans impeding a massive bill for his domestic agenda: Stop fighting and get it done as soon as possible, and our friends at the Club for Growth may have broken the code to get the bill passed.

In a closed-door meeting with rank-and-file Republicans in the basement of the U.S. Capitol, Trump took aim at a bloc of blue-state Republicans who’ve been pushing for a higher cap on the deduction their constituents can take for state and local taxes, known as SALT, while warning conservative hard-liners against steep cuts to Medicaid, ABC News reported.

Trump’s appearance at the Capitol comes at a critical time for Speaker Mike Johnson, R-La., who is aiming to steer the party-line, multitrillion-dollar bill through the narrowly divided House in the coming days.

But help may be on the way.



Club for Growth has conducted new polling which was released earlier this week, which shows the American People approve of Medicaid reforms so that states pay their fair share and the federal match rate decreases from 90-10 to 70-30 ratio.*

“If this reform is adopted in the bill it would ensure it is demonstrably deficit neutral and also nullify any changes to the SALT deduction that are currently being negotiated. Accordingly, with the state fair share provision (FMAP reform) inclusion, Club for Growth would issue a statement of support via a key vote alert in favor of the full reconciliation bill," said Club for Growth President David McIntosh.

The SALT Caucus Republicans are just one faction holding up the package, which seeks to extend Trump's 2017 tax cuts, boost funding for immigration enforcement and the military and cut spending elsewhere. It would also raise the debt limit.

A handful of conservative House Freedom Caucus members are threatening to vote against the measure unless they secure deeper spending cuts.

They've been pushing for new work requirements for Medicaid recipients to kick in sooner than the 2029 start date written in the current legislation. And conservatives are demanding a lower federal match to states for recipients added under the Obamacare expansion.



ABC further reported a senior White House official said Trump urged Republicans to "stick together" to pass what he has dubbed his "one big, beautiful bill." The president emphasized that the SALT issue should not halt the bill and that moderates can "fight for SALT later on," the official said.

And Trump told Republicans not to touch Medicaid, except for tackling "waste, fraud and abuse," the official said. The official said Trump was supportive of the new work requirements provisions and removing undocumented immigrants from Medicaid.

Johnson and his leadership team have set a self-imposed deadline of Memorial Day to pass the package through the House. The speaker told NBC News the legislation could come to the floor as soon as tonight.

*BACKGROUND: By greater than a 2 to 1 margin (68% to 29%), two-thirds believe waste, abuse, and fraud in the Medicaid system is a problem.

To protect and preserve Medicaid benefits, the majority (57% to 23%) supports a proposal to change the formula to require states to pay their fair share. Instead of states only paying $1 for every $9 of federal taxpayer dollars paid, the majority of voters want states to pay $3 for every $7 of federal taxpayer dollars paid. One in five (20%) are unsure.

 
  • Big Beautiful Bill
  • Freedom Caucus
  • Conservative Holdouts
  • Rep. Chip Roy
  • Art of the Deal
  • Josh Brecheen, 
  • Andrew Clyde, 
  • Ralph Norman, 
  • Lloyd Smucker (Pa.)
  • Committee Review
  • SALT tax
  • Blue State taxes
  • Medicaid cuts
  • illegal immigrants eligibility
  • Rep. Ken Calvert
  • Senator Josh Hawley
  • Energy subsidies
  • Work requirements

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