Connect with us

Politics

Trump tasks blue state Republicans with 'homework' as GOP plots massive conservative policy overhaul

Published

on

Trump tasks blue state Republicans with 'homework' as GOP plots massive conservative policy overhaul

President-elect Donald Trump is giving Republicans his blessing to negotiate on a key tax that could prove critical to the GOP’s negotiations for a massive conservative policy overhaul next year.

Trump met with several different groups of House Republicans at Mar-a-Lago over the weekend, including blue state GOP lawmakers who make up the House SALT Caucus – a group opposed to the current $10,000 cap on state and local tax (SALT) deductions that primarily affect urban and suburban residents in areas with high income and property taxes, such as New York, New Jersey, and California.

“I think it was productive and successful,” Rep. Nicole Malliotakis, R-N.Y., said of the meeting. “The president supports our efforts to increase the SALT deduction. He understands that mayors and governors in blue states are crushing taxpayers and wants to provide relief from the federal level.”

JOHNSON BLASTS DEM ACCUSATIONS HE VOWED TO END OBAMACARE AS ‘DISHONEST’

Advertisement

President-elect Donald Trump told New York Republicans he would work with them on a number of priorities (Chip Somodevilla/Getty Images)

But Trump also signaled he was aware of the opposition from others in the House GOP conference, particularly rural district Republicans, who have viewed SALT deductions as tax breaks for the wealthy. Before the cap was imposed in 2017, there was no limit to how much state income and local property taxes people could deduct from their income when filing their federal returns.

“He gave us a little homework to work on, a number that could provide our middle class constituents with relief from the high taxes imposed by our governor and mayor, and at the same time, you know, something that can build consensus and get to [a 218-vote majority],” Malliotakis said.

 “I think we pretty much know that it’s not going to be a complete lifting of the SALT cap. There’s not an appetite within Congress or even among American taxpayers to lower taxes for the ultra-wealthy.

“Our efforts are really targeted to middle-class families, and that’s what we’re focused on in trying to achieve the right balance.”

Advertisement

The current SALT deduction cap has been opposed by New York and California lawmakers for much of its existence, since being levied in Trump’s Tax Cuts and Jobs Act (TCJA).

RFK JR. TO MEET WITH SLEW OF DEMS INCLUDING ELIZABETH WARREN, BERNIE SANDERS

Rep. Nicole Malliotakis

Rep. Nicole Malliotakis told Fox News Digital that Trump would work with New York Republicans on congestion pricing (Drew Angerer/Getty Images)

Trump suggested he would change course during his second administration as early as September last year, when he posted on Truth Social that he would “get SALT back, lower your taxes, and so much more.”

The discussions are part of Republicans’ wider talks about passing a massive fiscal and conservative policy overhaul via a process known as “reconciliation.”

By lowering the Senate’s threshold for passage to a simple majority instead of two-thirds, the process allows the party in control of both houses of Congress and the White House to pass certain legislation provided it deals with budgetary and other fiscal matters.

Advertisement

Some pro-SALT deduction Republicans, like Rep. Mike Lawler, R-N.Y., had signaled they could withhold support from the final bill if the cap was not increased.

“The only red line I have is that if there is a tax bill that does not lift the cap on SALT, I would not support that,” Lawler told Fox News’ Sunday Morning Futures.

Lawler also said Trump agreed that SALT deduction caps needed to be raised.

House Republicans have virtually no room for error with a razor-thin majority from Trump’s inauguration until likely sometime in April.

Rep. Mike Lawler said SALT deduction caps were a "red line" for his support on a budget reconciliation bill

Rep. Mike Lawler said SALT deduction caps were a “red line” for his support on a budget reconciliation bill (Tierney L. Cross)

Meanwhile, Trump also told New York Republicans that he would help them fight their state’s controversial congestion pricing rule that levies an added cost to drive in parts of Manhattan.

Advertisement

“He understands how unfair this is and how it would impact the city’s economy and the people we represent and so we’re currently working with him on legal options to reverse the rubber stamp of the Biden administration,” Malliotakis said. “If there’s a legal option, if there’s a legal option for him to halt congestion pricing, he will.”

“You have, you know, cops, police, firefighters, nurses, the restaurant workers that have to go in at odd hours, and they drive because they don’t feel that the transit system is clean or safe.”

Congestion pricing took effect in New York City earlier this month.

Fox News Digital reached out to the Trump transition team for comment on this weekend’s meeting.

Advertisement

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Politics

Trump Agriculture pick confirmed as president racks up Cabinet wins

Published

on

Trump Agriculture pick confirmed as president racks up Cabinet wins

President Donald Trump secured two more Cabinet confirmations on Thursday, including his pick to lead the Department of Agriculture (USDA), Brooke Rollins. 

Rollins was easily confirmed by the Senate shortly after Robert F. Kennedy Jr. was confirmed as Trump’s Health secretary.

Most recently, Rollins has served as president and CEO of the America First Policy Institute (AFPI) think tank, which she co-founded after Trump’s first term. 

In Trump’s first administration, she was his director of the Office of American Innovation and acting director of the Domestic Policy Council.

TULSI GABBARD SWORN IN AT WHITE HOUSE HOURS AFTER SENATE CONFIRMATION

Advertisement

Brooke Rollins, U.S. President Trump’s nominee to be secretary of agriculture, testifies before a Senate Agriculture, Nutrition and Forestry Committee confirmation hearing on Capitol Hill in Washington, U.S., January 23, 2025.  (Kaylee Greenlee Beal/Reuters)

The newly elected president announced his selection of Rollins for USDA chief in November, recalling she did “an incredible job” during his first term. 

“Brooke’s commitment to support the American Farmer, defense of American Food Self-Sufficiency, and the restoration of Agriculture-dependent American Small Towns is second to none,” he said. 

DOGE ‘PLAYBOOK’ UNVEILED BY GOP SENATOR AS MUSK-LED AGENCY SHAKES UP FEDERAL GOVERNMENT

A side-by-side of President Trump and the United States Department of Agriculture

A side-by-side image of President Trump and the United States Department of Agriculture (Getty Images)

“As our next Secretary of Agriculture, Brooke will spearhead the effort to protect American Farmers, who are truly the backbone of our Country. Congratulations Brooke!”

Advertisement

The USDA nominee had a hearing before the Senate Agriculture, Nutrition and Forestry Committee last month, before advancing past the key hurdle. 

DEM LOOKS TO CODIFY NEW AG BONDI’S DESIRED CRACKDOWN ON ‘ZOMBIE DRUG’ XYLAZINE

Split image showing agriculture secretary nominee Brooke Rollins with Donald Trump and a sign outside the USDA

Brooke Rollins is sworn-in for a Senate Agriculture, Nutrition, and Forestry Committee hearing on her nomination for Secretary of Agriculture, Thursday, Jan. 23, 2025, in Washington.  (Getty Images | iStock)

The committee decision to move her nomination forward was unanimous, giving her bipartisan backing going into her confirmation vote. 

Rollins is now the 16th Cabinet official confirmed to serve in Trump’s new administration. With the help of the Republican-led Senate, Trump has managed to confirm his picks at a pace far ahead of either his first administration or former President Joe Biden’s. 

TRUMP LANDS KEY TULSI GABBARD CONFIRMATION FOLLOWING UPHILL SENATE BATTLE

Advertisement
Left: President Joe Biden; Right: President-elect Donald Trump

Biden and Trump during his first term lagged behind with confirmations. (Left: Pete Marovich/Getty Images; Right: Oleg Nikishin/Getty Images)

At the same point in his first term, Trump only had 11 confirmations and Biden had seven. Neither had 16 confirmed until March during their respective administrations. 

Continue Reading

Politics

Solutions: Here's how the Trump administration can curb housing costs

Published

on

Solutions: Here's how the Trump administration can curb housing costs

One reason American voters handed the country’s reins back to President Trump was the extreme inflation in housing prices that took place under his predecessor. The federal government has less influence over this issue than, say, California mayors and legislators — but whoever is in the White House can take certain steps to push prices down. The federal government can lower construction material costs, release more land for homebuilding and ensure that federal grants are used efficiently.

Unlike American manufacturing, residential construction has missed out on productivity improvements for decades. One reason is that building code updates, which are written by an industry group, increase costs more often than they decrease them. As a result, cost-conscious states usually stick with older, cheaper building codes. But that means they miss out on productive innovations. The Trump administration could start by creating a building code innovation module, consisting only of cost-decreasing updates, which states and cities could then adopt.

U.S. building codes have fallen behind peer countries in construction techniques for mid-rise buildings, which provide important, dense housing supply using little land. The administration could help California, Tennessee and several other states already in the process of identifying safety standards for the construction of four- to six-story buildings with a single staircase. A related innovation would adopt lower-cost elevator standards for small buildings, which would enable cost-effective accessibility in more new construction.

As the new administration sets tariff rates, it should balance construction costs among its priorities. The Biden administration doubled Trump’s original tariff on Canadian lumber, adding thousands to the cost of each new house. Cutting that tariff to its 2020 rate — or better yet, eliminating it and aiming tariffs at strategic opponents instead of America’s strongest ally — would bring immediate relief to builders and buyers. Instead, in his first few weeks back in office, Trump has scheduled higher tariffs on Canadian goods, including lumber, and added a 25% global steel tariff, which will make it much more expensive to build the next Trump Tower.

In addition to material costs, another factor that has driven up home prices and limited inventory is a chronic scarcity of construction workers, and the federal government has more control over this labor supply than states and cities do. Through immigration policy, the Trump administration could either aggravate the shortage or ease it, which would either raise or lower housing costs.

Advertisement

In land use, as in construction productivity, the federal government plays a quietly influential role. Trump has proposed building new “freedom cities” on federally owned land across the country. That’s one of several ways that huge federal landholdings could be opened for housing and jobs relatively free of local politics and NIMBYism.

Another idea is to expand nationwide the successful Southern Nevada Public Land Management Act, which allows the sale of federal land to support suburban growth. So far it has been limited to the Las Vegas area, where it has been successful and has generated funding to conserve and improve other valuable public land.

Other regulations and agencies influence the use of privately owned land. For instance, federal rules on storm water drainage are not only strict, but also complex and scattered. A first step would be to unify those rules in a single place. Once unified, they can be analyzed and streamlined as appropriate.

Some agencies, such as the Federal Aviation Administration and the Department of Defense, quietly influence local land use. An administration-wide directive could nudge them to affirm more homebuilding where appropriate rather than reflexively blocking it.

Yet the federal government’s most immediate connection to cities is through grant-making for a range of purposes. Many federal regulations require grantees to undergo expensive planning exercises to qualify for funding. Experience shows that the plans usually have no influence on subsequent actions. The new administration must ensure that money is used well by emphasizing outcome-based reporting for federal grantees instead.

Advertisement

Some grants are openly ill-spent. Several states waste federal funding for removing lead paint hazards by preventing out-of-state workers from contributing to that work. And some of the richest cities skirt the rules of the Community Development Block Grant program, using funds in ways that make housing more expensive, not more attainable. Federal agencies can easily curtail these inefficiencies.

Even better, the Department of Housing and Urban Development should find funding to offer technical assistance to small cities and towns that want to allow more housing. When I advised Auburn, Maine, on its nation-leading reforms, the limiting factor was local staff time. For municipalities that share Auburn’s goals, HUD can be a valuable resource.

Regulators at the Federal Housing Finance Agency have an outsize role in determining who gets a mortgage and why. The agency should seriously investigate the possibility that its own well-intended regulations have cut off mortgage lending to working-class families. My colleague Kevin Erdmann argues that unreasonably strict credit standards have eliminated most buyers for lower-cost homes and created a new constituency for single-family rentals. They would rather buy, if anyone would give them a mortgage.

Despite these many touchpoints, Americans should remember that the fault is not in our presidents, but in ourselves, that we are underbuilding. In California, for example, obstacles to construction include strict local zoning, NIMBY resistance and laws that require builders to pay above-market wages and force landlords to collect below-market rents. Such factors have aggravated a housing shortage and contributed to outmigration, homelessness and even more deferred dreams. Federal innovation and efficiency can support local efforts but cannot replace them.

Salim Furth is a senior research fellow and director of the urbanity project at the Mercatus Center at George Mason University.

Advertisement
Continue Reading

Politics

Trump supporting California sheriff to launch GOP run for governor in race to succeed Newsom: sources

Published

on

Trump supporting California sheriff to launch GOP run for governor in race to succeed Newsom: sources

A tough-on-crime Republican sheriff in southern California who was a supporter of President Trump in last year’s election will launch a campaign for Golden State governor, a source familiar confirms to Fox News.

Riverside County Sheriff Chad Bianco is expected to announce his candidacy at a scheduled event Monday in Riverside, California, about 50 miles southeast of downtown Los Angeles, in the 2026 race to succeed term-limited Democratic Gov. Gavin Newsom.

Bianco, a vocal critic of Newsom and other state Democratic leaders when it comes to the issues of crime and punishment, was one of the leaders who helped push California’s Proposition 36 ballot measure to a landslide victory in last November’s elections.

WHAT SHERIFF CHAD BIANCO TOLD FOX NEWS

Sheriff Chad Bianco of Riverside County speaks during a news conference at the U.S. Capitol on May 15, 2024. (Kent Nishimura/Getty Images)

Advertisement

The measure, which took effect in December, mandates stiffer penalties and longer sentences in California for certain drug and theft crimes.

MAJOR CALIFORNIA DEMOCRAT PREEDICTS FORMER VICE PRESIDENT KAMALA HARRIS WOULD CLEAR GUBERNATORIAL FIELD

Bianco, who has worked in law enforcement for more than three decades, was first elected sheriff in 2018. He’s been openly flirting with a 2026 gubernatorial run since at least last spring.

House Speaker Mike Johnson listens to Sheriff Chad Bianco speak during a news conference in the U.S. Capitol on May 15, 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

House Speaker Mike Johnson listens to Sheriff Chad Bianco speak during a news conference in the U.S. Capitol on May 15, 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

When asked late last year in a Fox News interview if he knew of anyone who might be capable of producing change in Sacramento – California’s capital city – Bianco responded, “I might, I might know someone that would go there with nothing but common sense and the betterment of the citizens of California rather than some crazy ideological agenda that truly makes absolutely no sense to any of us.”

It’s been nearly two decades since a Republican won statewide office in heavily blue California. You have to go all the way back to former Gov. Arnold Schwarzenegger’s 2006 re-election victory.

Advertisement
Gov Gavin Newsom

California Gov. Gavin Newsom is term-limited and cannot seek re-election in 2026. (California Governor Gavin Newsom YouTube channel)

There has been plenty of speculation since former Vice President Kamala Harris’ election defeat last November to Trump regarding her next political move, with the two potential options likely being launching a 2026 gubernatorial run in her home state of California or seeking the presidency again in 2028.

Harris served as San Francisco district attorney and California attorney general and U.S. senator before becoming vice president.

Sources in the former vice president’s political orbit say no decisions have been made about any next steps.

Vice President Harris

Vice President Kamala Harris delivers remarks at the Democratic National Committee’s holiday reception in Washington, D.C., Dec. 15, 2024. (AP Photo/Jose Luis Magana)

The Democrats’ field for governor in the heavily blue-leaning state is already crowded.

Among the more than half-dozen candidates already running for governor are Lt. Gov. Eleni Kounalakis, a Harris ally, and former Los Angeles Mayor Antonio Villaraigosa.

Advertisement

Former Rep. Katie Porter, who unsuccessfully ran for the Democratic Senate nomination last year, has expressed interest in launching a campaign.

Additionally, former Health and Human Services Secretary Xavier Becerra, who served in Congress and as California attorney general before joining the Biden administration, is also seen as a potential contender.

Former Fox News Channel host and conservative commentator Steve Hilton is considering a Republican run for California governor.

In California, unlike most other states, the top two finishers in a primary, regardless of party affiliation, advance to the general election.

Advertisement

Continue Reading

Trending