The coalition of House Republicans who backed an increase to the state and local tax deduction cap in the House’s reconciliation bill may soon be back to square one as the Senate eyes changes to the policy.
Just two weeks ago, a group of Republican lawmakers from high-tax states such as New York and California celebrated after their weeks-long effort for a larger SALT cap culminated in a conference-wide agreement over a $40,000 amount that would increase over 10 years. The deal marked a temporary end to tense meetings with House Speaker Mike Johnson and fiscal hawks who opposed any spending increases.
But the SALT Caucus is gearing up to once again face another round of negotiations — this time, with their counterparts in the upper chamber, who have signaled this week that the SALT cap is on the table as the Senate rewrites portions of the reconciliation bill.