Republican lawmakers pushing for the expansion of the state and local tax deduction in President Donald Trump’s economic package are slated to meet with House Speaker Mike Johnson to get specific about how much to increase the $10,000 cap on the write-off.
The meeting, set for Wednesday afternoon, comes as Republicans are beginning to craft the tax cuts and spending reductions they plan to pass in the coming months.
Representative Young Kim, a California Republican, said that Republicans “are still in negotiation” on how high to increase the dollar-limit on SALT deductions.
Yet the meeting may be one of the most detail-oriented yet with members expecting that the House Ways and Means Committee — which oversees tax policy — to offer an opening bid for a new SALT cap.
“The way the next several weeks will go will depend on the number they present tomorrow,” Representative Nick LaLota of New York told reporters on Tuesday. “This is the seventh or eighth inning of this process.”
Increasing the $10,000 limit — first imposed in Trump’s first-term tax bill — is a top priority for a handful of House Republicans who represent high-tax areas near New York City and Southern California. Republicans’ narrow majorities in the chamber mean that pro-SALT members have enough support to block the legislation if they deem the increase to the write-off too meager.
“We’ve had a number of conversations with our SALT caucus members,” said House Majority Leader Steve Scalise. “We’re going to have another meeting tomorrow and continue these meetings until we lock down a deal. And it’s one of many pieces of this puzzle.”
Most members have not yet said how high the SALT cap should go to earn their vote, but the contours of the negotiation have begun to form.
But Representative Chip Roy of Texas expressed resentment over the Johnson meeting, saying “when is he going to meet with the anti-SALT caucus?”
Some Republicans have started drafting a tax bill behind closed doors that calls for the cap to increase as high as $25,000 for an individual. But some members, including New York’s Mike Lawler, have said that isn’t adequate, without offering a number of their own.
The tax-and-spending legislation will include an extension of Trump’s first term tax cuts for households and closely-held businesses. Republicans are also debating a fresh round of cuts, including eliminating levies on tips and making interest on car loans deductible. They face tough choices on spending cuts to partially offset the tax cuts.
Representative Jeff Van Drew, a New Jersey Republican, is one of the few members who has cited a specific SALT figure, on Tuesday called a cap between $30,000-$40,000 the “sweet spot.”
Representative Elise Stefanik of New York, a member of House leadership, said in a post on X on Tuesday she is “looking forward to the conversation about SALT with NY Members tomorrow,” but didn’t specify if she would also attend the meeting with Johnson.
