House Republican leadership on Wednesday night unveiled last-minute tweaks to President Trump’s tax cut and spending priorities bill, including increasing the state and local tax (SALT) deduction cap and speeding up the implementation of new Medicaid work requirements.
The changes, made in legislation called a manager’s amendment, were revealed after late-stage negotiations with blue-state Republicans and hardline conservatives in the House Freedom Caucus who had been withholding support for the legislation.
GOP leaders plan to bring the “One Big Beautiful Bill Act” to a floor vote as soon as it clears the House Rules Committee, either late Wednesday night or in the wee hours of Thursday morning.
Included in the manager’s amendment is an increase to the state and local tax (SALT) deduction cap, which moderate Republicans from high-tax blue states had demanded. The text lays out a $40,000 deduction cap for individuals making $500,000 or less — the same agreement that moderate GOP lawmakers struck with Speaker Mike Johnson (R-La.) Tuesday night.
The initial version of the bill included a $30,000 deduction cap for individuals making $400,000 or less — a proposal that SALT Republicans vocally rejected.
It also speeds up implementation of new Medicaid work requirements to “no later than December 31, 2026,” rather than Jan. 1, 2029 — a change that hardline conservatives were seeking.
This is a developing story.
