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Republican Rift Over $10K SALT Deduction Cap Complicates Budget

5/10/2025

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Summary

Story summary

Republican lawmakers face division over the $10,000 SALT deduction cap established in 2017.
House members from high-tax states insist on an increase, risking opposition to Trump's fiscal package.
Proposals range from raising the cap to $30,000 to even higher limits.
The SALT cap's expiration could result in a $144.7 billion loss for the federal government by 2026.
This disagreement complicates the approval of Trump's budget reconciliation bill.

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Story summary

Republican lawmakers face division over the $10,000 SALT deduction cap established in 2017.
House members from high-tax states insist on an increase, risking opposition to Trump's fiscal package.
Proposals range from raising the cap to $30,000 to even higher limits.
The SALT cap's expiration could result in a $144.7 billion loss for the federal government by 2026.
This disagreement complicates the approval of Trump's budget reconciliation bill.