Overview

• President Trump reversed his campaign pledge to restore full SALT deductions, urging GOP lawmakers to prioritize passing the budget bill over raising the cap.
• Blue-state Republicans, including New York Representatives Andrew Garbarino and Nick LaLota, demand a higher cap than the proposed $30,000 limit for joint filers earning up to $400,000.
• The SALT deduction cap, imposed in 2017, disproportionately affects residents of high-tax states like New York, New Jersey, and California, fueling bipartisan efforts for relief.
• House Speaker Mike Johnson faces challenges uniting fiscal conservatives and blue-state Republicans, with only a slim margin for defections in the House vote.
• Senate Democratic Leader Chuck Schumer criticized Trump’s reversal, accusing him of betraying New York taxpayers and breaking campaign promises.