US: Lawler Threatens To Tank Big Beautiful Bill If Senate Changes SALT Cap

Rep Mike Lawler (R-NY) warned in a statement on X that SALT Republicans could torpedo the 'Big Beautiful Bill' in the House, if the Senate changes the $40,000 State and Local Tax (SALT) deduction in the House-passed version of the bill. 

• Lawler said: "Let’s be clear — no SALT, no deal... If the Senate changes the negotiated number of $40,000 — it will derail final passage of the bill."
• Lawler's statement came in response to a comment from Senate Majority Leader John Thune (R-SD) on SALT: “There’s gonna have to be some adjustments. Senators just are in a very different places than the House is on that”.
• While there is a sizable contingent of blue-state Republicans in the House (enough to sink the bill), there are no Republican Senators from high-tax blue states who have the same political imperative to enact the SALT deduction. Many Republican senators view the SALT deduction as a red-state subsidy for blue states.
• Lawler's comment brings into sharp focus the problem for both Thune and House Speaker Mike Johnson (R-LA), who are both facing rebellions from their moderate and conservative flanks over the shape of the final reconciliation package.
• Senate Finance Committee Republicans are scheduled to meet with President Donald Trump at the White House at 16:00 ET 21:00 BST to discuss disputes over the tax policies in the bill. Trump has previously backed a higher SALT cap but is under pressure from conservatives to endorse more deficit reduction measures.