Johnson, SALT Republicans zero in on critical agreement

[BumRushDaShow]

Source: The Hill

05/20/25 9:20 PM ET


Speaker Mike Johnson (R-La.) and moderate Republicans have zeroed in on an agreement for the state and local tax (SALT) deduction cap, three sources told The Hill, solving a critical hang-up that has dogged the party’s “big, beautiful bill.” The proposal would increase the SALT deduction cap to $40,000 — quadruple the current $10,000 cap — for individuals making $500,000 or less in income, three of the sources said. One source said the level would increase 1 percent a year over 10 years.

That marks an increase from the $30,000 cap with a $400,000 income cap currently in the bill — a provision that SALT Caucus members vehemently rejected. The House Rules Committee is scheduled to convene at 1 a.m. Wednesday, during which the panel will consider changes to the bill.

While several members of the SALT Caucus are supportive of the plan, according to sources, Johnson will need to sell the proposal to hardline conservatives — including many in the House Freedom Caucus — who have been resistant to a significant hike to the deduction cap.

Exiting a meeting in the Speaker’s office Tuesday night, members of the SALT Caucus said they did not yet have a firm deal, but signaled significant progress. “We weren’t even in the same universe a couple of days ago. We’re on the same ballfield now,” Rep. Nick LaLota (R-N.Y.) told reporters.

Read more: https://thehill.com/homenews/house/5310851-republicans-salt-deal-trump-bill/