The Senate Finance Committee unveiled its portion of the GOP's sweeping "big, beautiful bill," one of the most highly-anticipated steps in preparation for the Senate vote. However, the massive bill may not yet have an assured path to approval, as several reports indicate that Republicans in Congress can't agree on where the legislation is headed.
Blue state House Republicans sounded the alarm of GOP infighting following reports that a hard-fought increase to the state and local tax (SALT) deduction cap would be nixed by Senate GOP taxwriters, from $40,000 to $10,000, Axios reports.
Senate Republicans have said that the number in the text is merely a placeholder to continue negotiations across the Capitol, The Hill reports. But House Republicans in the SALT Caucus are warning that they will not accept anything lower than the $40,000 deduction cap they landed last month.
"Consider this response to the Senate's 'negotiating mark': DEAD ON ARRIVAL," Rep. Mike Lawler, R-N.Y., posted on X.
"Everyone knows this 10K number will have to go up. And it will," Rep. Elise Stefanik (R-N.Y.) said on X.
The "big, beautiful bill" has been the subject of tension for Congress Republicans since the days of its negotiations in the House. More specifically, SALT has been increasingly contentious among the GOP, with moderate House Republicans from high-tax blue states— including representatives from New York, New Jersey and California, many of whom helped secure the conference's majority— pushing for a higher deduction cap, and deficit hawks pressing to keep it low.
Most recently, House Republican Conference Chair Lisa McClain (R-Mich.) warned Senate Republicans to "touch very lightly" and don't force a conference process.
If the Senate makes substantial changes, Speaker Mike Johnson (R-La.) and Majority Leader John Thune (R-S.D.) will be forced to go to conference and hammer out the differences in July, with the threat of a debt default hanging over negotiations.
"I really don't think there's a huge appetite to go to conferences because of the timing," McClain said.
If a deduction cap below $40,000 remains in the bill, and Senate Republicans approve it, the legislation is unlikely to pass the House, where it must go for final approval before landing on President Trump's desk. House Republicans can only afford to lose three votes and still pass the bill— assuming full attendance and all Democrats vote "no"— and far more have come out against the new SALT provision.
"The Senate doesn't have the votes for $10k SALT in the House," Rep. Nick LaLota (R-N.Y.), a vocal member of the SALT Caucus, wrote on X, with a photo of Daveed Diggs portraying Thomas Jefferson in "Hamilton" and a caption reading "you don't have the votes; you don't have the votes."
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