House Republicans from high-tax states are demanding changes to the state and local tax, or SALT, deduction cap as a condition for backing President Donald Trump’s legislative package, setting up a pivotal meeting Wednesday with Speaker Mike Johnson as GOP leaders race to complete their budget deal, The Hill reported.

House Republicans aligned with the SALT Caucus will meet Wednesday with Johnson, R-La., and Ways and Means Committee Chair Jason Smith, R-Mo., to demand relief from the $10,000 cap on state and local tax deductions — a significant obstacle in their negotiations over Trump’s legislative priorities.

The meeting, scheduled for 4:30 p.m., is the first formal discussion on SALT since the House entered the final stage of budget reconciliation.

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