Overview

• Negotiators are zeroing in on preserving the House-approved $40,000 deduction cap while lowering the $500,000 income threshold and tweaking phase-out figures.
• Scott Bessent met separately with Senate Republicans and SALT Caucus members this week as leaders aim to clinch a deal before Friday’s planned floor vote.
• Sen. Markwayne Mullin and other GOP negotiators report “progress” but say key differences remain over how steeply to cut the income cutoff.
• Moderate House Republicans from high-tax states warn they will withhold support for the broader tax bill if the SALT cap is reduced.
• Senate leaders are pushing to dial back SALT relief to free up revenue for permanent business tax cuts on research, development and capital investments.