President Trump demands GOP unity on reconciliation bill, warning House Republicans against deep Medicaid cuts while firmly opposing increases to SALT deductions in a crucial closed-door meeting.

At a Glance

• Trump met with House Republicans to push for passage of a budget reconciliation bill, declaring negotiations over
• The President instructed conservatives to focus on reducing waste in Medicaid rather than making substantial cuts
• Trump firmly opposed increasing the SALT deduction cap, which currently stands at $10,000
• Three key factions must align for bill passage: fiscal hawks, moderate Medicaid supporters, and SALT advocates
• Despite Trump’s direct approach, some Republicans remain unconvinced the bill has enough support to pass

Trump’s Message to House Republicans

In a decisive move to advance his legislative agenda, President Trump gathered House Republicans for a private meeting where he delivered a straightforward message: the time for negotiation on the reconciliation bill is over. Trump took a firm stance with the various factions within the Republican conference, specifically addressing two contentious issues that have threatened to derail the legislation. He instructed conservatives to avoid major cuts to Medicaid programs while simultaneously telling representatives from high-tax states not to push for increases to the state and local tax (SALT) deduction cap.

Following the meeting, Trump projected confidence to reporters, characterizing the gathering as “a meeting of love.” Despite this positive spin, sources inside the room described the President’s tone as stern and blunt, particularly regarding the SALT deduction cap, which some Republicans from high-tax states have been pushing to increase from the current $10,000 limit to as much as $30,000. The cap, implemented during Trump’s first administration, has been particularly unpopular in states with high state and local taxes.

The Medicaid Compromise

On the Medicaid front, Trump’s message aimed to thread a difficult needle between fiscal conservatives who want substantial spending cuts and moderates concerned about impacts to healthcare access. Rather than endorsing deep reductions to the program, the President directed lawmakers to focus on eliminating waste, fraud, and abuse within Medicaid. This approach represents a significant compromise for members of the House Freedom Caucus, who have typically advocated for more substantial cuts to government spending and entitlement programs.

“Trump was stern. He was blunt,” said one Republican lawmaker who attended the meeting. The President specifically told the group not to make major cuts to Medicaid, suggesting instead that the focus should be on administrative reforms that would preserve benefits while reducing mismanagement. This approach aligns with Trump’s campaign promises to protect entitlement programs while still addressing fiscal concerns.

Three Key Factions Must Align

The path to passing the reconciliation bill requires delicate balancing of three distinct Republican factions: fiscal hawks demanding significant spending cuts, moderates protective of Medicaid funding, and representatives from high-tax states advocating for SALT deduction cap increases. Trump’s intervention comes as House Speaker Mike Johnson has been working to craft a package that could satisfy enough members from each group to secure passage with the Republicans’ narrow majority.

Some Republicans left the meeting expressing optimism. “The president was very persuasive,” said Rep. Tom Cole (R-OK). However, others remained skeptical about whether the modifications to the bill would be sufficient to secure passage. Rep. Andy Harris (R-MD) acknowledged that while progress had been made, “We have more work to do before this bill gets to the floor.”

My latest piece on tax legislation is below. It was written a couple of weeks ago and since I wrote this piece Republicans have added even more to the potential bill including expanding child tax credit, fixing R&D, possibly back to 1/1/2022…

Heck they are considering over…

— Mike Sylvester, CPA (@FortWayneCPA) March 15, 2025

Next Steps for the Bill

Following Trump’s intervention, the reconciliation bill is scheduled for review by the House Rules Committee before advancing to a floor vote. The legislation represents a crucial test of the Republican majority’s ability to deliver on campaign promises regarding tax cuts and spending reforms. Despite the President’s forceful push for unity, the narrow margins in the House mean that even a handful of Republican defections could derail the bill’s passage.

Trump’s approach reflects his understanding that failure to pass a major budget reconciliation package would represent a significant setback for his administration’s domestic agenda. By inserting himself directly into the legislative process, the President has raised the stakes for Republican lawmakers who might consider voting against the package. As one Republican representative who requested anonymity put it, “The message was clear—get on board or be prepared to explain to voters why you’re obstructing the President’s agenda.”