House Republicans Discuss SALT Deduction Cap Changes

House Republicans are facing internal divisions over whether and how to increase the $10,000 cap on the state and local tax (SALT) deduction, a major sticking point in President Donald Trump's legislative agenda. Lawmakers from high-tax states like New York, New Jersey, and California are demanding significant relief from the cap as a condition for supporting the package, emphasizing that raising the deduction is a nonnegotiable priority for their constituents. Key figures such as Rep. Mike Lawler and Rep. Nick LaLota have publicly stated they will not back the bill without a SALT fix, underscoring the political pressure on House leadership. Discussions are ongoing, with House leaders and tax committee chair Jason Smith meeting with the SALT Caucus to weigh potential increases and how to target the expanded deduction, possibly for those earning under $400,000. The issue remains unresolved, threatening to stall progress on the broader tax package as Republicans try to balance cost concerns and demands from swing-district lawmakers. The outcome of these negotiations could significantly impact the passage of Trump’s legislative priorities.