Speaker Johnson says ‘everything is on the table’ as blue-state GOPers push SALT deduction cap boost

WASHINGTON — Republicans are getting SALT-y on Capitol Hill.

House Speaker Mike Johnson (R-La.) said Thursday he is still tinkering with “the dials” on tens of thousands of dollars in potential blue-state tax deductions as part of President Trump’s “big, beautiful bill,” warning that “everything is on the table” as he pushes for a final vote on the package next week.

“Not everybody’s going to be delighted with every provision in a bill this large, but everyone can be satisfied,” Johnson told reporters after a closed-door meeting with New York Republicans who are pushing for a higher State and Local Tax (SALT) deduction cap than the $30,000 limit called for in the current bill.

The cap helps residents in states like New York, New Jersey and California deduct the cost of their state income taxes, property taxes and other local taxes from their federal returns — but Johnson hopes to balance higher deductions with lower federal spending on Medicaid due to the imposition of work requirements.

“If you do more on SALT, you have to find more in savings,” he said, hinting that the deduction limit could be increased before a scheduled House Budget Committee vote on the full bill Friday. “We are trying to do this in a deficit-neutral way.”

The House Ways and Means Committee released legislative text Monday capping SALT deductions at $30,000 for individuals making under $400,000 annually and at $15,000 for married individuals filing separately and having $200,000 in yearly income.

Empire State Republican Reps. Elise Stefanik, Mike Lawler, Andrew Garbarino and Nick Lalota — all of whom took part in Thursday’s meeting — called the plan “insulting” in a joint statement released last week.

“New Yorkers already send far more to Washington than we get back, unlike many so-called ‘low-tax’ states that depend heavily on federal largesse,” they said. “It’s a matter of fairness. We reject this offer.”

Staten Island Rep. Nicole Malliotakis, the only Ways and Means member who is also part of the SALT GOP group, said earlier this week that the “window is closing” on a deal that could deliver relief to middle-class taxpayers.

Under Trump’s 2017 tax law, SALT deductions were limited to $10,000 for individual filers and $5,000 for married couples filing separately. That provision will expire at the end of 2025 if not renewed.

Fiscal hawks like House Freedom Caucus Chairman Andy Harris (R-Md.) and Rep. Chip Roy (R-Texas), who are pushing for $2 trillion in spending cuts or savings, were also in the meeting.

That faction has balked at the legislative package, which could pass by a simple majority of both chambers of Congress through a process known as budget reconciliation, not implementing work requirements for able-bodied Americans on Medicaid until 2029.

The House Energy and Commerce Committee has already released text showing plans to cut $900 billion in spending over the next decade, including by reforming Medicaid.

Moderate GOPers like Rep. Brian Fitzpatrick (R-Pa.), who also took part in the meeting, have opposed some of those spending reductions — including provisions to defund Planned Parenthood.

Johnson has committed to $1.5 trillion in total spending cuts, while also raising the US debt ceiling by around $4 trillion.

That’s on top of plans to nix taxes on tips, overtime and Social Security, which Trump promised on the 2024 campaign trail, along with at least a restoration of the current SALT deductions.

If any of the factions present in Thursday’s meeting withholds their vote from the reconciliation bill, it could be enough to kill it on the House floor.

Republicans currently hold a 220-213 majority in the House, meaning they can only afford three defections on any bill.

Budget reconciliation allows their party to pass legislation adjusting the debt ceiling as well as spending and revenue levels by a simple majority, so long as there are no outright policy changes.

The House Budget Committee has 21 Republicans and 16 Democrats, meaning the GOP can afford just two defections to keep the bill on track to advance to the full chamber.

“We’re very very close,” Johnson said hopefully following the meeting. “I’m committed to work throughout the weekend on it, others are as well. … We are still on path to pass this bill next week.”