Senate Republicans on Monday released their portion of President Donald Trump’s “Big, Beautiful Bill,” proposing a permanent extension of the $10,000 cap on state and local tax (SALT) deductions. The proposal immediately clashed with the House version, which raises the cap to $40,000 for households earning up to $500,000. That deal was brokered by House Republicans from high-tax blue states, who say they will not support anything less.
Speaker Mike Johnson has urged the Senate to keep changes to a minimum, warning that he can afford to lose only a few votes. Senate Majority Whip John Thune acknowledged the standoff, telling reporters, “We understand that it’s a negotiation. Obviously, there had to be some marker in the bill to start with, but we’re prepared to have discussions with our colleagues here in the Senate and figure out a landing spot.”
House Republicans insist thae landing spot must include their SALT deal. “Everyone knows this $10K number will have to go up. And it will,” said Conference Chair Elise Stefanik. “New York Republicans will fight and deliver real tax relief for our overly taxed constituents, unlike New York Democrats who have failed the people of New York over and over. And then we will fire Kathy Hochul once and for all in 2026.”
Rep. Mike Lawler (R-NY) called the $40,000 cap “the deal” and stated, “I will not accept a penny less.”
Rep. Nick LaLota (R-NY) added, “If they are not sold on the House’s $40,000 compromise, wait until they crash the OBBB and TCJA expires, when SALT goes back to unlimited at year-end. They will not like that one bit.”
Reps. Young Kim (R-CA) and Andrew Garbarino (R-NY) echoed that message, describing the House compromise as a win for working families and aligned with Trump’s tax agenda. “It has been praised by middle-class families, firefighters, law enforcement, small business owners, and hardworking Americans across the country,” they said. “The Senate should work with us to keep our promise of historic tax relief.”
Rep. Tom Kean (R-NJ) emphasized the broader stakes of the debate. “This is about fixing a flaw in the federal tax code that stifles growth, undermines local control, and violates the conservative belief in fair, limited taxation.”
Rep. Nicole Malliotakis (R-NY) warned that removing the House SALT provision would alienate the very districts that secured the Republican majority. “The $40,000 SALT deduction was carefully negotiated with other tax provisions, and we all had to give a little to obtain the votes to pass the Big Beautiful Bill. If we want to be the big tent party, we need to recognize that we represent blue states with high taxes that are subsidizing many red districts across the country.”
In a closed-door May meeting, President Trump reportedly urged Lawler to drop his push for a higher SALT cap, saying he would lose reelection regardless. Lawler and LaLota pushed back, saying they would not throw their constituents “under the bus” without a stronger SALT provision.
