Latest news with #SALTCaucus
The Hill
2 days ago
- Business
- The Hill
Speaker Johnson, Bessent say SALT deal is ‘very, very close'
Speaker Mike Johnson (R-La.) and Treasury Secretary Scott Bessent said negotiations over the state and local tax (SALT) deduction cap are 'very, very close,' a positive sign for Republicans as they race to put the finishing touches on their sprawling tax cuts and spending package. Johnson and Bessent met with GOP senators during their lunch on Friday to pitch them on the framework they agreed to with a handful of moderate House Republicans from high-tax blue states. Sen. Kevin Cramer (R-N.D.), who was at the gathering, said the proposal would make the SALT deduction cap $40,000 for five years, then $10,000 for the following five years. Emerging from the huddle, both Johnson and Bessent said talks were nearing the end. 'I believe they will,' Johnson said when asked if Senate Republicans would accept the SALT plan. 'They're gonna digest the final calculations but I think we're very, very close to closing that issue out.' Bessent echoed that sentiment, saying negotiations were 'very, very close' and noting that the reception among Senate GOP members to the proposal was 'varied.' The SALT deduction cap has been one of the thorniest hangups stalling progress on the GOP's 'big, beautiful bill,' which leaders are trying to send to President Trump by their self-imposed July 4 deadline. The House's version of the bill included a $40,000 deduction cap — quadruple the $10,000 cap in current law — for individuals making $500,000 or less. The Senate's edition of the legislation, however, proposed a $10,000 cap, sparking howls among House Republicans. Many Senate Republicans have wanted to chop down the House's deduction cap, threshold and phaseouts to increase savings, especially as none of them are from high-tax blue states. News surfaced of a potential SALT breakthrough Friday morning, with sources telling The Hill that the administration and key members of the SALT Caucus were zeroing in on an agreement. Not all lawmakers in the SALT Caucus, however, are on board. Rep. Nick LaLota (R-N.Y.), who has been one of the most vocal in the group, told reporters earlier on Friday that he 'heard of a deal' involving a $40,000 cap for five years and then a $10,000 cap for the following five years, which was a non-started for him. 'I'm a hard no on that,' he said of the blueprint, saying the proposal 'just affirms the very thing I've been against for so long.'
Yahoo
2 days ago
- Business
- Yahoo
Key SALT Republicans reject latest offer from Senate GOP, White House
A trio of key moderate House Republicans say they are rejecting the latest offer from Senate Republicans and the White House on the state and local tax (SALT) deduction cap, heightening the cross-chamber standoff over one of the thorniest issues in the GOP's 'big, beautiful bill.' Rep. Nick LaLota (R-N.Y.) — who has been one of the most vocal members of the SALT Caucus — told The Hill that the Trump administration, on behalf of Senate Republicans, presented the group with a SALT proposal that was valued at $200 billion, far less than the $344 billion value in the House-passed bill. The Hill first reported on the offer. 'It's such a terrible offer that is nowhere near the realm of possibility,' LaLota said. 'If you all were buying a car and you were presented a number by a salesman like it was presented by those folks today you would never go back to the lot ever again. You'd be so humiliated, disgusted and you would never go back again. I'm close to that point. They need to get real in what they will present us or this bill ain't ever gonna happen.' Shortly after, Rep. Young Kim (R-Calif.), a co-chair of the SALT Caucus, and Rep. Mike Lawler (R-N.Y.), another key member of the group, also rejected the latest offer. 'We rejected that,' Lawler told reporters. 'We're continuing to dialogue with them and we'll see where it goes.' The House-passed measure included a $40,000 deduction cap — quadruple the number in current law — for individuals making $500,000 or less. Senate Republicans, however, reverted the proposal back to $10,000 in their version of the legislation, sparking a fierce fight between the two camps. In recent days, however, talks have zeroed in on keeping the $40,000 deduction cap in place but changing the income threshold and inflation index. SALT Caucus members would not disclose the contours of the latest offer, but he said it included a lower income cap and lower indexing for inflation. LaLota said the latest offer is 58 percent of the value of the SALT provision in the House bill. The rejection of the latest offer by the three SALT Caucus lawmakers deals a blow to ongoing negotiations over the deduction cap, which has emerged as one of the most difficult hangups in the party's sprawling tax cuts and spending package. Sen. Markwayne Mullin (R-Okla.), who has been the lead negotiator for Senate Republicans on SALT, brushed off LaLota's rebuff of the most-recent offer, exuding confidence that the two groups will reach consensus. 'We're still looking for a spot. We're gonna be good,' Mullin said. 'We'll make it work, we'll get to [a] landing spot.' Time, however, is running out. Senate Majority Leader John Thune (R-S.D.) is pushing to put the legislation on the floor for an initial vote on Friday, which would kick off the consideration process as Republicans race to meet their self-imposed July 4 deadline. After the Senate clears the bill, the House has to give it a final stamp of approval. Aside from SALT, Senate Republicans are still grappling with a handful of disagreements, including Medicaid cuts and the rollback of green-energy tax credits. The Senate Parliamentarian delivered GOP lawmakers a significant setback Thursday morning when she shot down key Medicaid provisions in the bill, including a proposal to cap states' use of health care provider taxes to collect more federal Medicaid funding — a provision championed by conservatives that would have generated billions of dollars in savings to pay for President Trump's tax cuts. Asked if he thinks the Senate will still be able to vote on the bill this weekend, despite the lingering hangups, Mullin responded: 'Yes.' Al Weaver and Alex Bolton contributed. Updated at 4:21 p.m. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Business
- Yahoo
SALT Caucus, White House zero in on key agreement in Trump megabill
Moderate House Republicans from high-tax blue states and the Trump administration are zeroing in on an agreement for the state and local tax (SALT) deduction cap, which has been one of the key hang-ups dogging the party's tax and spending megabill. Multiple sources familiar with the SALT talks told The Hill that the House members and Trump administration officials are closing in on a plan for SALT, but it must be sold to Senate Republicans before being finalized. Sen. Markwayne Mullin (R-Okla.), who has been the lead Senate GOP negotiator on SALT, told The Hill, 'There's a tentative deal between the SALT and White House, but not the Senate, [which is] still talking through that.' One source familiar with the SALT talks, however, cautioned against saying there is a 'deal' on the table, because Senate Republicans — who have been opposed to increasing the deduction cap — still have to sign off on the terms. 'Having learned my lesson with the House language, the Senate needs to have buy-in here, so I'm waiting to see what their fingerprints look like,' the source said. Treasury Department Secretary Scott Bessent, who has met with SALT Caucus members in recent days, is scheduled to join Senate Republicans at their lunch Friday, two sources confirmed to The Hill, a gathering that could include discussion regarding SALT. Rep. Nick LaLota (R-N.Y.), who did not attend SALT talks at the Treasury Department on Thursday afternoon, said he 'heard of a deal' that includes a $40,000 deduction cap — the same number in the House bill — for five years, which would snap back to $10,000 for the next five years 'and then in perpetuity.' LaLota, one of the most vocal SALT Caucus members, said he is opposed to that proposal. 'I'm a hard no on that,' he told reporters, saying the proposal 'just affirms the very thing I've been against for so long.' It remains unclear if the plan LaLota outlined is the same proposal the SALT Caucus members and administration are closing in on. Speaker Mike Johnson (R-La.), for his part, sounded bullish Friday about a SALT breakthrough. 'A lot of progress yesterday,' he told reporters. 'I think we'll get that resolved in a manner that everybody can live with. No one will be delighted about it, but that's kind of the way this works around here.' The news of an impending agreement is a significant development in the long-stalled negotiations over SALT, one of the thorniest issues Republicans have faced. The House bill included a $40,000 deduction cap — quadruple the $10,000 in current law — for individuals making $500,000 or less. Senate Republicans, however, enraged House SALT Caucus members by chopping that down, proposing a $10,000 deduction cap. Since then, the two camps have been engaged in fierce negotiations. In recent days, those talks have largely centered on keeping the $40,000 deduction cap from the House bill intact but dropping the $500,000 income threshold and indexing for inflation. The administration, on behalf of Senate Republicans, offered the SALT Caucus a plan Thursday that had a total value of $200 billion, far less than the $344 billion value in the House bill, according to LaLota. Several lawmakers in the group, however, rejected that proposal. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
2 days ago
- Business
- The Hill
SALT Caucus, White House zero in on key agreement in Trump megabill
Moderate House Republicans from high-tax blue states and the Trump administration are zeroing in on an agreement for the state and local tax (SALT) deduction cap, which has been one of the key hangups dogging the party's 'big, beautiful bill.' Multiple sources familiar with the SALT talks told The Hill that the House members and Trump administration officials are closing in on a plan for SALT, but it must be sold to Senate Republicans before being finalized. Sen. Markwayne Mullin (R-Okla.), who has been the lead Senate GOP negotiator on SALT, told The Hill 'There's a tentative deal between the SALT and White House, but not the Senate [which is] still talking through that.' One source familiar with the SALT talks, however, cautioned against saying there is a 'deal' on the table because Senate Republicans — who have been opposed to increasing the deduction cap — still have to sign off on the terms. 'Having learned my lesson with the House language, the Senate needs to have buy in here so I'm waiting to see what their fingerprints look like,' the source said. Treasury Secretary Scott Bessent, who has met with SALT Caucus members in recent days, is scheduled to join Senate Republicans at their lunch on Friday, two sources confirmed to The Hill, a gathering that could include discussion regarding SALT. Rep. Nick LaLota (R-N.Y.), who did not attend SALT talks at the Treasury Department Thursday afternoon, said he 'heard of a deal' that includes a $40,000 deduction cap — the same number in the House bill — for five years, which would snapback to $10,000 for the next five years 'and then in perpetuity.' LaLota, who has been one of the most vocal SALT Caucus members, said he is opposed to that proposal. 'I'm a hard no on that,' he told reporters, adding that the proposal 'just affirms the very thing I've been against for so long.' It remains unclear if the plan LaLota outlined is the same proposal that the SALT Caucus members and administration are closing in on. Speaker Mike Johnson (R-La.), for his part, on Friday sounded bullish on a SALT breakthrough. 'A lot of progress yesterday,' he told reporters. 'I think we'll get that resolved in a manner that everybody can live with. No one will be delighted about it, but that's kind of the way this works around here.' The news of an impending agreement is a significant development in the long-stalled negotiations over SALT, which had been one of the thorniest issues Republicans have had to deal with. The House bill included a $40,000 deduction cap — quadruple the $10,000 in current law — for individuals making $500,000 or less. Senate Republicans, however, enraged House SALT Caucus members by chopping that down, proposing a $10,000 deduction cap. Since then, the two camps have been engaged in fierce negotiations. In recent days, those talks have largely centered on keeping the $40,000 deduction cap from the House bill intact but changing the $500,000 income threshold and indexing for inflation. The administration, on behalf of Senate Republicans, offered the SALT Caucus a plan on Thursday that had a total value of $200 billion, far less than the $344 billion value in the House bill, according to Rep. Nick LaLota (R-N.Y.), a key member of the SALT Caucus. Several lawmakers in the group, however, rejected that proposal.
Yahoo
4 days ago
- Business
- Yahoo
Republicans report progress, but no deal on critical SALT issue
It's crunch time for negotiations over the state and local tax (SALT) deduction cap. After a high-stakes meeting with Treasury Department Secretary Scott Bessent on Wednesday, House Republicans in the SALT Caucus and a key GOP senator reported 'progress' but no deal, leaving one of the thorniest issues in the party's tax and spending bill unresolved. Stakeholders say talks have zeroed in on keeping in place the $40,000 deduction cap — which the SALT Caucus negotiated in the House — but lowering the $500,000 income threshold and adjusting the numbers for inflation, a compromise of sorts that would appease moderate House Republicans while also placating Senate conservatives. The clock, however, is ticking: Senate GOP leaders are hoping to put their version of the 'big, beautiful bill' on the floor by Friday — officially kicking off the consideration process — but can't move forward without a SALT deal. Some lawmakers say an agreement is imminent. 'We've made a little bit of progress; we're still working through it,' Sen. Markwayne Mullin (R-Okla.), a former House member who has served as a key liaison between the chambers, told The Hill after Wednesday's meeting. 'I think we'll have something shaken out by tomorrow — maybe, hopefully. I think we're in good shape.' Others, however, were more pessimistic. Rep. Nick LaLota (R-N.Y.), a key member of the SALT Caucus who attended the meeting with Bessent on Wednesday, said the gathering was 'pleasant' and 'cordial,' but the two chambers are still a ways away from consensus. 'Everybody wants a deal, everybody wants to get to yes, everybody wants to put the nation on a better track,' LaLota said. 'But it does seem like the Senate and the House right now are far apart.' In one signal that negotiations may be approaching their final phase, Bessent huddled with Republicans on the issue twice this week, meeting with Senate Republicans on Tuesday and SALT Caucus members Wednesday. Attendees were coy about the contents of the meeting, though some said they were glad to see the Cabinet member taking an increasingly active role. Lawmakers didn't emerge from the meeting floating any new policy proposals, but instead making tweaks to existing parameters. 'He's a former constituent and certainly understands my district, understands the issue of SALT, so I think it's good to engage in the conversation with the secretary,' said Rep. Mike Lawler (R), who represents New York's 17th Congressional District. Asked if Bessent's presence should be taken as a sign that a deal is close, LaLota replied, 'I hope that we're closer today than we were yesterday.' 'He's the Treasury secretary speaking on behalf of the administration on a bill that affects the nation's financial well-being,' LaLota said. According to one Senate GOP aide, Mullin and the White House presented multiple options to the SALT Caucus members. Those would likely keep the $40,000 figure in place, but would focus on altering the threshold and cap phaseouts to secure more savings. 'We're getting close to where we need that issue landed,' Senate Majority Leader John Thune (R-S.D.) said, adding that talks have been 'very productive' of late. 'This is one of those deals where nobody's going to get everything that they want.' Lawler seemed to agree. 'Well we're near the end of the bill, aren't we? I mean, the Senate is barreling towards a vote, and obviously the president and the White House want to get this bill across the finish line. So, obviously we're getting towards the end here,' he said. Moderate House Republicans from high-tax blue states — including New York, New Jersey and California — have been at odds with Senate Republicans for months over SALT, with stakeholders in the lower chamber pushing for a higher deduction cap and those in the upper chamber voicing sharp opposition to such a move. The disagreement escalated into a full-on fight earlier this month when the Senate Finance Committee released its portion of the megabill that had a $10,000 deduction cap for individuals making $500,000 or less — down from the $40,000 cap House SALT Caucus members landed after months of tenuous negotiations with their leadership. The cap, as implemented in the 2017 Trump tax cuts, currently stands at $10,000. Now, members are trying to bridge that gap. After initially shutting down the idea of lowering the $500,000 income threshold — 'I am done negotiating,' LaLota told The Hill when asked about the prospect last week — key lawmakers in the SALT Caucus appear open to the proposal, if the price is right. 'The Senate's been describing it like that, yes, to not futz with the $40K deduction, but it seems that they're endeavoring to change the $500K income cap,' he told reporters Wednesday. 'And I've been clear, if they do that, if they water the income cap down, they need to strengthen other provisions like the inflation adjustment.' 'Otherwise, it's not a compromise,' he added. 'Otherwise, it's them just trying to jam their preferences down our throats.' The phaseout figures are also something Senate GOP members are angling to lower. The House GOP plan would have shrunk the deduction cap down to $10,000 for individuals making $600,000 — giving Senate Republicans another area they believe they can find much-needed savings. Negotiations on the topic were always poised to be difficult. No Senate Republicans hail from high-tax blue states, leaving SALT without an advocate in the upper chamber — a stark difference from the House GOP conference, as leadership in both chambers is acutely aware of. 'We've been clear from the very beginning with our Senate counterparts that the issues with SALT in the House are very different than the issues in the Senate,' House Majority Leader Steve Scalise (R-La.) said. 'We have about a dozen members that are voting on this bill exclusively based on what happens with SALT. There's not a single senator on the Republican side that has that same issue.' 'So, it is a House challenge that we've had to work on from the beginning that just doesn't exist over in the Senate side,' he added. 'But it has to get resolved if you're going to have a bill that passes.' Mullin has held numerous discussions with the key House faction in recent days, having told reporters throughout that stretch that the goal was not necessarily to strike an agreement but to get to a point of 'acceptance.' 'I don't think either side is going to like it,' he said Tuesday, adding that they need to get 'to the point where it's palatable enough to take it and not vote not against, and that goes for both chambers.' 'Everybody's got very strong opinions about it,' he added. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
