It’s crunch time for negotiations over the state and local tax (SALT) deduction cap.

After a high-stakes meeting with Treasury Department Secretary Scott Bessent on Wednesday, House Republicans in the SALT Caucus and a key GOP senator reported “progress” but no deal, leaving one of the thorniest issues in the party’s tax and spending bill unresolved.

Stakeholders say talks have zeroed in on keeping in place the $40,000 deduction cap — which the SALT Caucus negotiated in the House — but lowering the $500,000 income threshold and adjusting the numbers for inflation, a compromise of sorts that would appease moderate House Republicans while also placating Senate conservatives.

The clock, however, is ticking: Senate GOP leaders are hoping to put their version of the "big, beautiful bill" on the floor by Friday — officially kicking off the consideration process — but can’t move forward without a SALT deal.

Some lawmakers say an agreement is imminent.

“We’ve made a little bit of progress; we’re still working through it,” Sen. Markwayne Mullin (R-Okla.), a former House member who has served as a key liaison between the chambers, told The Hill after Wednesday’s meeting. “I think we’ll have something shaken out by tomorrow — maybe, hopefully. I think we’re in good shape.”

Others, however, were more pessimistic. Rep. Nick LaLota (R-N.Y.), a key member of the SALT Caucus who attended the meeting with Bessent on Wednesday, said the gathering was “pleasant” and “cordial,” but the two chambers are still a ways away from consensus.

“Everybody wants a deal, everybody wants to get to yes, everybody wants to put the nation on a better track,” LaLota said. “But it does seem like the Senate........

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