Republicans reach tentative deals with “salt”
A tentative deal has been reached between House Speaker Mike Johnson and a group of Republican Brue lawmakers to increase state and local tax credits, or “salt” caps.
House Speaker Mike Johnson reached a temporary deal with Republican lawmakers in Blue State, increasing the state and local tax credits, or “salt” cap to $40,000. President Donald Trump The so-called “big, beautiful bill,” Republican sources were confirmed to Fox News late Tuesday.
The proposed cap is up from $30,000 – is per household for taxpayers under $500,000 a year.
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R-La. House Speaker Mike Johnson will speak at a press conference with House Republican leaders on May 20, 2025, with Washington, DC. (Nathan Posner/Anadoll via Getty Images)
It remains unclear whether GOP hardliners opposed to raising the salt cap deduction will register for the measure.
The preliminary agreement, first reported by Politico and confirmed by Fox News, is House GOP Faction is engaged in high-stakes debate on tax, Medicaid and green energy subsidies while creating the president’s “big and beautiful bill.”
President Donald Trump and House Speaker Mike Johnson, R-La. will speak with reporters after the House Republican Conference on the Budget Settlement Bill at the U.S. Capitol on Tuesday, May 20, 2025. (Tom Williams/CQ-Roll Call, Inc, Getty Images)
Salt deduction caps benefit people living in high-cost areas, mainly New York City, Los Angeles and the surrounding area.
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House speaker Mike Johnson, R-LA. will speak at a press conference at the Capitol Building in Washington on May 6, 2025. (AP Photo/Rod Lamkey, Jr., File)
Republicans representing these regions have framed up the salt deduction cap as an existential issue, claiming that the majority of GOPs could be sacrificed in the middle of 2026.
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Meanwhile, Republicans representing low-tax conditions are largely wary of raising the deduction cap, and believe it will encourage blue states. High Tax Policy.
Elizabeth Elkind of Fox News Digital contributed to this report.
