House lawmakers are gearing up for a battle over the State and Local Tax (SALT) deduction, which is currently capped at $10,000. Meetings have already commenced on Capitol Hill as House Republicans push for the restoration of the original full deduction, which allows taxpayers to deduct up to $10,000 of property, sales, or income taxes paid to local and state governments. Most taxpayers benefiting from this deduction reside in high-tax states like New York, Connecticut, New Jersey, and California. The cap on SALT was introduced in 2017 as part of former President Donald Trump's $1.5 trillion tax bill, a measure that House lawmakers are now aiming to overturn.

With the expiration of the SALT cap provision from the Trump tax bill set for December 31, 2025, House Republicans are mobilizing to explore alternative payment methods for the tax plan should Trump return to the presidency and Republicans gain control in Congress. Recent discussions have highlighted Trump's new stance on reinstating the full SALT deduction, despite his previous role in implementing the $10,000 cap. Representatives from states heavily reliant on the SALT deduction, such as New York and California, have been actively engaging with House Ways & Means Committee members to advocate for the revival of the unlimited SALT tax deduction.

As House lawmakers strategize on how to secure an unlimited SALT deduction in the upcoming Congress, some Republicans are reaffirming their commitment to opposing any tax bill that retains a $10,000 SALT cap. Representatives from both parties, such as Rep. Andrew Garbarino and Rep. Josh Gottheimer, are vocal about their plans to restore the full SALT deduction post-2025. The battle over the SALT deduction is predicted to intensify, with lawmakers from SALT reliant states aiming to leverage their influence to safeguard the interests of middle-class families and taxpayers facing the impact of the SALT cap.