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Trump-backed Republican challenges Nevada incumbent over tip-tax repeal in key district

Republican Marty O'Donnell is leveraging President Donald Trump’s “no tax on tips” policy to contest Democrat Susie Lee in Nevada’s competitive 3rd congressional district.

In Nevada’s pivotal 3rd congressional district, Democrat Susie Lee faces a strong challenge from Republican Marty O'Donnell, who centers his campaign on President Donald Trump’s “no tax on tips” provision. O'Donnell, a composer known for the “Halo” series, entered the race with a $3 million personal loan and backing from the Safety and Affordability super PAC, which has poured almost $3.2 million into ads, matching the $3.1 million O'Donnell has already spent.

Lee, who has held the seat since 2019, counters with support from the Culinary Workers Union and has invested $2.9 million, while the House Majority Fund contributed $2.3 million. Both candidates argue over the policy’s benefits amid a 7.5 % decline in Nevada tourism, which has reduced income for tipped workers. Lee notes the tip-tax exemption expires in 2028 and calls for a permanent fix that also addresses Medicaid and SNAP cuts tied to the original legislation. The contest is a focal point for Republicans seeking to flip the House and for Democrats defending a district with a large hospitality workforce.

Why it matters

The race will affect House control and the future of tax relief for tipped workers in a tourism-dependent district.

In this story

no tax on tipsNevada congressional raceMarty O'DonnellSusie LeeTrump tax policyhospitality workerstourism decline
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