The impasse over the state and local tax (SALT) deduction cap is deepening as Senate Republicans and House moderates from high-tax blue states remain at a loggerheads, a stalled state-of-play that is threatening to thwart leadership’s goal of enacting the party’s “big, beautiful bill” by July 4.

Sen. Markwayne Mullin (R-Okla.) — a former House member and key liaison between Republicans in both chambers — spoke with a group of House GOP lawmakers in the SALT Caucus on Wednesday to discuss the issue, two sources familiar with the matter told The Hill, as top lawmakers hunt for a consensus on the cross-Capitol debate. Reps. Mike Lawler (R-N.Y.), Andrew Garbarino (R-N.Y.), Young Kim (R-Calif.) and Tom Kean Jr. (R-N.J.) were present, according to one of the sources.

Leaders are trying to bridge the gap between the House’s $40,000 SALT deduction cap for individuals making $500,000 or less and the Senate’s proposal for a $10,000 cap, which matches the number in current law. SALT Caucus members have deemed the Senate’s offer a nonstarter and are demanding that the House deal — which was the product of months-long negotiations with Speaker Mike Johnson (R-La.) — remains in the final product.

After Wednesday’s call, progress appeared elusive.

“We're still working on a deal. We're still running numbers on things. ... A little premature, and I hope [the leaks] didn't damage us moving forward,” Mullin told The Hill on........

© The Hill