[UNITED STATES] President Donald Trump issued a blunt warning to House Republicans on Tuesday, urging them to abandon their objections over proposed changes to Medicaid and the state and local tax (SALT) deduction, as internal GOP divisions threaten to derail his marquee tax and spending bill ahead of a self-imposed Memorial Day deadline.
Trump’s Capitol Hill Blitz
In a high-stakes, closed-door meeting with House Republicans, Trump sought to leverage his influence to unify the party behind what he calls his "one big beautiful" budget reconciliation proposal—a sweeping package that includes tax cuts, Medicaid reforms, and other priorities central to his domestic agenda.
Trump’s message was unambiguous. According to multiple lawmakers and sources present, he warned, "Don't f--- around with Medicaid," signaling to fiscal conservatives that further attempts to slash the program risk fracturing the party and imperiling the bill’s passage. At the same time, he told moderates from high-tax states to drop their push for a more generous SALT deduction, reportedly saying, "Just let it happen," and cautioning that those who continue to hold out could face political consequences, including potential primary challenges.
"If you lose because of SALT, you were going to lose anyway. I know your district better than you do," Trump reportedly told Rep. Mike Lawler (R-N.Y.), a leading SALT advocate.
The SALT and Medicaid Fault Lines
SALT Deduction: Blue-State Revolt
The SALT deduction has emerged as a flashpoint. The 2017 Tax Cuts and Jobs Act capped the deduction at $10,000, disproportionately impacting residents of Democratic-leaning states like New York, New Jersey, and California. The current proposal would raise the cap to $30,000 for individuals earning up to $400,000, but a bloc of Republicans from these states—the so-called "SALT Caucus"—argues this does not go far enough.
Leadership has floated a temporary $40,000 cap as a compromise, but key holdouts remain unswayed. Rep. Nick LaLota (R-N.Y.) said, "We need a little more SALT on the table to get to yes". Trump, meanwhile, has shifted from his earlier campaign promise to "get SALT back," now framing the deduction as a giveaway to Democratic governors and urging Republicans to move on.
Medicaid: Conservatives Push for Deeper Cuts
On the other side, members of the House Freedom Caucus are demanding more aggressive Medicaid cuts and stricter work requirements. The bill already proposes significant changes, including new eligibility rules and phased-in reforms starting in 2027, but some conservatives want to go further.
Trump, however, has drawn a red line, insisting that Republicans focus only on "eliminating waste, fraud, and abuse" within Medicaid, not slashing benefits for the program’s 71 million low-income beneficiaries. The Congressional Budget Office estimates that millions could lose coverage if the current Medicaid provisions become law.
Speaker Johnson’s Balancing Act
Speaker Mike Johnson (R-La.) is racing to secure enough votes to pass the bill before Memorial Day. With only a slim majority, he can afford to lose just a handful of Republican votes. Johnson remains publicly optimistic, declaring, "We’re on the verge of making history," but acknowledged that "a number of loose ends" remain. "We’ve got some hours ahead of us to work this out, and I’m very confident we will," Johnson told reporters.
Yet, the path forward is fraught. Moderates warn they cannot support the bill without more SALT relief, while conservatives remain dissatisfied with the current level of Medicaid savings and overall spending. Some, like Rep. Thomas Massie (R-Ky.), have declared themselves firm "no" votes, criticizing the package as cementing "Biden levels of spending".
Political Stakes and Next Steps
Trump’s forceful intervention underscores the stakes for both his administration and the GOP. The bill is central to Trump’s campaign promises and legislative legacy, funding tax cuts, border security, and other priorities while rolling back climate-related tax credits. But the risk of a public GOP split looms large, with both sides warning of political fallout if their concerns are not addressed.
Democrats, meanwhile, have seized on the infighting. House Minority Leader Hakeem Jeffries (D-N.Y.) criticized the package as "the largest cut to Medicaid and nutritional assistance in American history," and accused Republicans of trying to "jam this legislation down the throats of the American people".
The House is tentatively scheduled to vote on the bill Wednesday night, but with key factions still at odds, further negotiations and possible amendments are likely. Even if the bill passes the House, it faces additional hurdles in the Senate, where Republican leaders have signaled they may seek further changes.
Outlook: Can Trump’s Pressure Campaign Succeed?
As the clock ticks down, Trump and GOP leaders are betting that party unity—and the threat of political retribution—will be enough to overcome the remaining pockets of resistance. Whether that gamble pays off will determine not only the fate of the tax and spending bill, but also the broader trajectory of the Republican agenda heading into the 2026 midterms.
For now, the message from Trump is clear: "Don’t mess with Medicaid. Take the SALT deal. Get the bill done." The coming days will reveal whether his party is willing—or able—to fall in line.
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