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Mike Johnson hails ‘progress’ toward SALT deal

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The White House is close to clinching an agreement on the state and local tax deduction after a last-ditch flurry of negotiations with blue-state House GOP holdouts and Senate Republicans, according to three people granted anonymity to describe the talks.

Treasury Secretary Scott Bessent, who is brokering the politically complex deal that is key to unlocking the GOP megabill, will attend Senate Republicans lunch later today, according to a another person with direct knowledge of the matter.

Speaker Mike Johnson told reporters Friday morning that there was “a lot of progress yesterday” at an evening meeting of SALT Republicans and Treasury officials and that he expected the issue to get “resolved in a manner that everybody can live with.”

“No one will be delighted about it, but that’s kind of the way this works around here,” he said. “But the other issues [with the megabill], I think, will be resolved, hopefully today, and we can move forward.”

However, one hard-line SALT holdout, New York Rep. Nick LaLota, said: “If there was a deal, I’m not a part of it.”

Jordain Carney contributed to this report.

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Congress

Key GOP centrist Rep. Don Bacon will not seek reelection

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Rep. Don Bacon will not seek reelection and plans to retire at the end of his term, according to two people familiar with his plans. The announcement is expected Monday.

Bacon is a key GOP centrist in the House and represents one of only three Republican-held districts that Kamala Harris won in the 2024 presidential election.

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Rep. Dusty Johnson to announce a bid for South Dakota governor Monday

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Rep. Dusty Johnson will announce a bid for South Dakota governor Monday, according to two people granted anonymity to speak about private conversations.

Johnson has served as South Dakota’s sole House representative since 2019. He’s been a key player in major deals on Capitol Hill in recent years as the head of the Main Street Caucus of Republicans.

Johnson, long expected to mount a bid for higher office, will make the announcement in Sioux Falls.

Johnson is the eighth House Republican to announce a run for higher office in 2026. Reps. Andy Biggs of Arizona, Byron Donalds of Florida, Randy Feenstra of Iowa, John James of Michigan and John Rose of Tennessee are also seeking governor’s offices; Reps. Andy Barr of Kentucky and Buddy Carter of Georgia have announced Senate runs.

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Senate slated to take first vote on megabill Saturday

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Senate Republicans are planning to take an initial vote at noon on Saturday to take up the megabill.

Leadership laid out the timeline during a closed-door lunch on Friday, Sen. John Kennedy (R-La.) and John Hoeven (R-N.D.) said after the lunch. A person granted anonymity to discuss internal scheduling confirmed the noon timeline but cautioned Republicans haven’t locked in the schedule yet.

During the lunch, Speaker Mike Johnson pitched Senate Republicans on the tentative SALT deal, according to three people in the room. He said the deal was as good as Republican can get, according to the people.

Johnson noted he still has “one holdout” — an apparent reference to New York Republican Nick LaLota, who said in a brief interview Friday that if there was a deal, he was not part of it.

Leaving the meeting, Johnson was asked by reporters whether he thought Senate Republicans would accept the SALT deal. “I believe they will,” he replied. “They’re going to digest the final calculations, but I think we’re very, very close to closing that issue.”

In the meeting, Treasury Secretary Scott Bessent and Johnson laid out details of the fragile agreement, telling Senate Republicans the House SALT deal would be cut in half, to total roughly $192 billion. They restated it would raise the SALT cap to $40,000 for five years under the current House-negotiated SALT deal, and snap back to the current $10,000 cap after that.

In related matters, Kennedy and Hoeven also said the Senate will keep its provider tax proposal but delay its implementation, which Republicans believe will help it comply with budget rules. and Johnson also told Senate Republicans that he wants to do another reconciliation bill — which senators took to mean they would get another opportunity to secure spending cuts or provisions passed that have been squeezed out of the megabill.

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