President-elect Donald Trump has given the go-ahead to Republican negotiations on a key tax that could be crucial in negotiations for a massive overhaul of conservative policies next year.

Trump met with several different groups House Republicans, including blue-state Republicans who make up the House SALT Caucus, met at Mar-a-Lago over the weekend to oppose the current $10,000 cap on the state and local tax (SALT) deduction that primarily affects urban and suburban residents. Areas with higher taxes and property taxes, such as New York, New Jersey, and California.

“I thought the meeting was productive and successful,” Rep. Nicole Malliotakis, D-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 relief at the federal level.”

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President-elect Donald Trump tells New York Republicans he will work with them on some priorities (Chip Somodevilla/Getty Images)

But Trump also said he was aware of opposition from others in the House Republican conference, especially Republicans in rural areas who viewed the SALT deduction as a tax break for the wealthy. Before the cap was imposed in 2017, there were no limits on the amount of state income taxes and local property taxes people could deduct from their income when filing their federal tax returns.

“He gave us some homework that would keep our middle-class constituents safe from the high taxes imposed by governors and mayors and at the same time, you know, something that would build consensus and build consensus. (218 votes majority),” Malliotakis said.

“I think we’re very clear that this is not going to completely remove the SALT cap. There’s no appetite within Congress or even among American taxpayers to lower taxes on the super-rich.

“Our efforts are really geared toward middle-class families, and that’s where we focus on trying to get the right balance.”

Current cap on SALT deductions met with opposition new york and california The tax has been on the radar of lawmakers for much of its existence since being levied in Trump’s Tax Cuts and Jobs Act (TCJA).

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Rep. Nicole Malliotakis tells Fox News Digital that Trump will work with New York Republicans on congestion pricing (Drew Angler/Getty Images)

Trump said as early as last September that he would change course during his second administration, when he posted on Truth Social that he would “bring back SALT, lower taxes, etc.”

The discussions are part of a broader discussion among Republicans to pass massive fiscal and conservative policy reforms through a process known as “reconciliation.”

By lowering the Senate passage threshold to a simple majority rather than two-thirds, the process allows the parties that control both chambers of Congress and the White House to pass certain legislation involving the budget and other fiscal matters.

Some Republicans who support the SALT deduction, such as New York Rep. Mike Lawler, have said they may refuse to support the final bill if the cap is not increased.

“My only red line is if a tax bill doesn’t raise the cap on salt, I won’t support it,” Lawler told Fox News’ Sunday Morning Futures show.

Lawler also said Trump agrees that the SALT deduction cap needs to be increased.

Between Trump’s inauguration and sometime in April, House Republicans had little room for error and won with slim majorities.

Rep. Mike Lawler says SALT deduction cap is ‘red line’ in his support of budget reconciliation bill (Tierney L. Cross)

Meanwhile, Trump also told New York Republicans that he would help them fight the state’s Controversial congestion charging rules This will result in additional costs for driving in parts of Manhattan.

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“He understands how unfair this is and how it will impact the city’s economy and the people we represent, so we are currently working with him to find legal options to reverse the Biden administration’s Rubber stamp. “If there is a legal option, if he has a legal option to stop congestion charging, he will do it.”

“You know, police officers, police officers, firefighters, nurses, restaurant workers who have to work at odd hours, they drive because they feel the transportation system is not clean or unsafe.”

Earlier this month, New York City began implementing congestion pricing.

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