The House Ways and Means Committee in a Monday meeting proposed raising the cap on state and local tax deductions to $30,000 but limiting them to those earning under $400,000, according to people familiar with the matter.

The proposal represents a compromise on one of the top disagreements among Republicans as they seek to write a major fiscal overhaul to implement President Donald Trump’s agenda and extend the 2017 Tax Cuts and Jobs Act, which first set a $10,000 cap on deductions for SALT, as it is known.

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Still, House Speaker Mike Johnson (R-LA) said after meeting with SALT Republicans on Monday that there is no set number and that there were “lots of numbers discussed.”

Centrist Republicans from blue tax states have been pushing hard to increase the $10,000 SALT cap. For months, Republican leadership has been meeting with those members to negotiate how much they would increase the cap and other details.

It is unclear if enough members of the so-called “SALT caucus” would accept the $30,000 cap coupled with a $400,000 income cap.

Notably, Reps. Mike Lawler (R-NY), Elise Stefanik (R-NY), Andrew Garbarino (R-NY), and Nick LaLota (R-NY) released a statement last week saying they opposed a flat $30,000 SALT cap.

“It’s not just insulting — it risks derailing President Trump’s one big beautiful bill,” they said.

The SALT cap has become one of the trickiest negotiations as Republicans seek to advance the fiscal overhaul through reconciliation, a legislative process that allows bills to bypass the filibuster and pass with only a simple majority in the Senate. That is because Republicans can only afford to lose a few votes given their small majority in the House.

Trump has pushed for an increase to the SALT cap in reconciliation, which will include language to extend or make permanent several expiring tax provisions set to expire at the end of the year.

The caveat with the SALT cap, though, is that raising it is unpopular among most rank-and-file Republicans, who have noted that it largely benefits wealthy taxpayers in Democrat-led states. The Tax Policy Center found that the highest-income 20% of households would receive more than 96% of the tax cut if the cap were fully repealed.

If accepted, the $30,000 cap could be pitched as a victory for SALT Republicans that they can message to constituents, although some members of the SALT caucus have pushed for a much higher cap.

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In January, Lawler reintroduced the SALT Fairness and Marriage Penalty Elimination Act, which would dramatically hike the SALT deduction cap from $10,000 to $100,000 for single filers and would eliminate the so-called “marriage penalty,” allowing married couples filing jointly to deduct up to $200,000.

Additionally, Garbarino introduced his SALT Deductibility Act earlier this year, which would completely eliminate the SALT cap.