House Republican leadership on Tuesday night reportedly reached a tentative agreement with a handful of GOP holdouts that would reportedly boost the cap on state and local tax (SALT) deductions.
The new agreement would raise the cap on SALT deductions from the $10,000 currently in place to $40,000 a year instead. House Republicans previously proposed raising the cap to $30,000 a year, but it was rejected by SALT Republicans.
Several blue state Republicans threatened to reject President Donald Trump’s legislative budget without the concessions, which Trump is expected to approve, according to Politico.
Other changes under the new agreement, which still needs final approval from certain SALT lawmakers, the House Ways and Means committee and several fiscal hawks, include limiting the cap to taxpayers that make below $500,000, increasing the deduction by 1% every year for 10 years and keeping the deduction cap in place after 10 years.
The House Rules Committee is expected to debate the new proposal in the early hours of Wednesday morning, and House Speaker Mike Johnson is hoping to pass the budget by Friday.
Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.
