House Republicans Reject Senate $10,000 SALT Cap Proposal

Moderate House Republicans from high-tax blue states are strongly opposing the Senate Republicans' proposal to keep the state and local tax (SALT) deduction cap at $10,000, which matches the current law. The House had previously negotiated and passed a version of the bill raising the SALT cap to $40,000 for households earning up to $500,000, a deal brokered by the SALT Caucus members representing these districts. Key House Republicans, including Reps. Mike Lawler, Andrew Garbarino, and Young Kim, have declared they will vote no if the Senate reduces the cap from $40,000, warning that doing so would cause the bill to fail in the House. Senate Majority Leader John Thune described the $10,000 figure as a placeholder for ongoing negotiations aimed at finding a middle ground that satisfies both chambers. House members argue that the higher SALT cap is crucial for delivering tax relief to their constituents in high-tax states and is aligned with President Donald Trump's tax agenda. The standoff highlights a significant hurdle in the passage of the GOP's "big, beautiful bill," with House Republicans insisting on preserving their negotiated SALT cap increase to ensure the legislation's success.