Overview

• The Senate Finance Committee’s draft of H.R. 1 restores the SALT deduction cap to $10,000, overturning the $40,000 limit approved by the House.
• Blue state Republicans including Reps. Nick LaLota, Mike Lawler and Nicole Malliotakis have threatened to vote down the legislation if the cap does not return to $40,000.
• The House version passed by a narrow 215–214 margin with key support from the House SALT Caucus, leaving minimal leeway for defections.
• A source familiar with negotiations says the $10,000 cap could be a placeholder, but the impasse risks derailing the bill before it reaches President Trump’s desk.
• Should the package collapse, the current cap will expire in 2025 and taxpayers in high-tax states could face unlimited SALT deductions starting in 2027.