House Republicans are set to dive into discussions over the state and local tax (SALT) deduction cap on Wednesday, officially kicking off negotiations for one of the largest — and most contentious — sticking points in the party’s package full of President Trump’s legislative priorities.

Republicans who hail from high-tax blue states like New York, New Jersey and California — a group that makes up the SALT Caucus — are scheduled to huddle with Speaker Mike Johnson (R-La.) and Ways and Means Committee Chairman Jason Smith (R-Mo.) on Wednesday at 4:30 p.m., sources told The Hill, marking the first meeting about the issue since the budget reconciliation process entered its final stage in the House.

The gathering comes as SALT caucus Republicans are warning that they will not support a Trump agenda bill unless it includes a suitable increase in the deduction cap — a warning for Johnson and his lieutenants, who will need near unanimity in the chamber to get the legislation over the finish line.

“As I’ve said repeatedly, this is a top priority for me. So it is imperative that there be a SALT fix in the bill, period,” said Rep. Mike Lawler (R-N.Y.), a vocal advocate of a SALT deduction increase. “Either it’s going to be fixed or it’s not. And if it’s not, I ain’t voting for the bill.”

“Yeah, I’m all in on the SALT provision,” Rep. Nick LaLota (R-N.Y.) told reporters when asked if increasing the deduction cap is a red line for him.........

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