Speaker Johnson Reaches Tentative Deal With Blue State Republicans To Boost Cap On ‘salt’ Deduction

House Speaker Mike Johnson has reached a tentative woody pinch bluish authorities Republican lawmakers to boost nan headdress connected authorities and section taxation deductions, aliases "SALT," to $40,000 successful President Donald Trump’s alleged "big, beautiful bill," Republican sources confirmed to Fox News precocious Tuesday. 

The projected headdress – which is up from $30,000 – would beryllium per family for taxpayers making little than $500,000 per year. 

GOP HOLDOUTS UNMOVED BY TRUMP'S 'BIG, BEAUTIFUL' TRIP TO CAPITOL HILL

Speaker of nan House Mike Johnson, R-La., speaks astatine a property convention pinch different members of House Republican activity successful Washington, DC, United States, connected May 20, 2025. (Nathan Posner/Anadolu via Getty Images)

 It remains unclear whether GOP hardliners who reason raising nan SALT headdress deductions will motion disconnected connected nan measure. 

The tentative agreement, first reported by Politico and confirmed by Fox News, comes arsenic House GOP factions person been engaged successful high-stakes debates connected taxes, Medicaid, and greenish power subsidies while crafting nan president’s "big, beautiful bill."

President Donald Trump and Speaker of nan House Mike Johnson, R-La., talk pinch reporters aft a House Republican Conference gathering connected nan fund reconciliation measure successful nan U.S. Capitol connected Tuesday, May 20, 2025.  (Tom Williams/CQ-Roll Call, Inc via Getty Images)

SALT conclusion caps chiefly use group surviving successful high-cost-of-living areas for illustration New York City, Los Angeles, and their surrounding areas. 

BLUE STATE REPUBLICANS THREATEN MUTINY OVER STATE AND LOCAL TAXES IN TRUMP'S 'BIG, BEAUTIFUL BILL'

House Speaker Mike Johnson, R-La., speaks during a news convention astatine nan Capitol, May 6, 2025, successful Washington.  (AP Photo/Rod Lamkey, Jr., File)

Republicans representing those areas person framed raising nan SALT conclusion headdress arsenic an existential issue, arguing that a nonaccomplishment to reside it could costs nan GOP nan House mostly successful nan 2026 midterms. 

CLICK HERE TO GET THE FOX NEWS APP

Meanwhile, Republicans representing lower-tax states are mostly wary of raising nan conclusion cap, believing that it incentivizes bluish states’ high-tax policies. 

Fox News Digital’s Elizabeth Elkind contributed to this report.