Republicans reach tentative agreement on “salt”
House Speaker Mike Johnson and a group of blue state Republican lawmakers have reached a tentative agreement to increase the cap on state and local tax breaks or “salt”.
House Speaker Mike Johnson has reached a tentative deal with Blue State Republican lawmakers to raise the cap on state and local tax breaks, or “salt” of $40,000, confirmed to Fox News later Tuesday.
Taxpayers with proposed caps (more than $30,000) earn less than $500,000 per year.
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House Speaker Mike Johnson, R-La. Speaking at a press conference at House Republic Leadership in Washington, DC, USA on May 20, 2025. (Nathan Posner/Anadolu via Getty Images)
It is unclear whether the Republican hard extender, which opposes raising salt cap deductions, will sign on the measure.
The tentative agreement, first reported by Politico and confirmed by Fox News, is because the Housing Republican faction has engaged in a high-risk debate on taxes, Medicaid and green energy subsidies while producing the president's “big and beautiful bills.”
President Donald Trump and House Speaker Mike Johnson, R-la. , talked to reporters after the House Republican Conference meeting on the budget settlement bill held in the U.S. Capitol on Tuesday, May 20, 2025. (Tom Williams/CQ-Roll Call, Inc, via Getty Images)
Precipitation caps mainly benefit people living in high-cost areas such as New York City, Los Angeles and its surrounding areas.
Blue State Republicans threaten state and local taxes on Trump's “big and beautiful bill”
House Speaker Mike Johnson (R-La. (AP Photo/Rod Lamkey, Jr., File)
Republicans representing these regions have restricted the increase in salt deductions to survival issues, believing that failure to resolve this could give the Republican Party a House majority in mid-2026.
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Meanwhile, Republicans representing lower tax countries are largely wary of raising the cap on deductions, which he believes inspires high tax policies in the blue countries.
Elizabeth Elkind of Fox News Digital contributed to the report.
