Senate GOP Weigh SALT Cap Changes Amidfederal Megabill Challenges

President Donald Trump's sweeping "big, beautiful bill" which includes a $40,000 cap on the federal State and Local Tax (SALT) deduction, passed the House by a narrow margin but faces significant challenges in the Senate. Senate Republicans, none of whom represent high-tax blue states, are largely opposed to the $40,000 SALT cap and favor lowering it, arguing that the House's version is too generous and effectively subsidizes wealthier states. This disagreement has sparked frustration among House Republicans from high-tax states such as New Jersey and New York, who warn that altering the SALT cap in the Senate could derail the final passage of the bill. Senate Majority Leader John Thune acknowledged the divide but emphasized ongoing negotiations with the House and the White House to resolve the issue, while Senate Finance Committee Republicans are focusing on other priorities like making business tax cuts permanent. President Trump, aware of the delicate House majority, discussed the SALT issue briefly with Senate Republicans, weighing potential impacts on vote counts. The SALT cap remains a critical flashpoint between House and Senate Republicans as they work to finalize the legislation.