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Scalise says SALT talks already kicking off

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House Majority Leader Steve Scalise said that Republicans were negotiating on Tuesday over how to accommodate concerns about the state and local tax deduction that could be an obstacle to a sweeping tax package next year.

“We need to address this problem,” said Scalise (R-La.) of the contingent of House Republicans from California, New Jersey and New York who have been adamant about lifting the $10,000 cap on the deduction for state income and property taxes, known as SALT in tax parlance. “They’re coming back.”

A spokesperson for Scalise did not immediately respond to a request about which lawmakers were participating in the meetings.

The early negotiations signal just how challenging House Republican leadership expects it to be to muster the votes for an anticipated reconciliation bill next year, which could be passed without Democratic support. Republicans want to use the legislation to extend trillions of dollars in expiring tax cuts that President-elect Donald Trump and his allies in Congress pushed through in 2017, during Trump’s first term.

And the most difficult part for leadership promises to be those pro-SALT Republicans, who held up a tax package earlier this spring over demands that it include some form of relief from the cap. The limit was imposed to offset some of the cost of the 2017 cuts – and ding blue states that have high taxes.

Tuesday morning, Rep. Michael Lawler (R-N.Y.) reaffirmed those demands, telling Blue Light News that he’s made it “abundantly clear” that any future tax packages will need to address SALT.

In remarks made at a panel hosted by the Business Roundtable and the American Petroleum Institute, Scalise said that he reminded incoming Senate Majority Leader John Thune (R-S.D.) that such demands from Republicans in high-tax states could be a significant challenge in the House.

“I reminded him, because he wasn’t part of it last time around in the top leadership, that our challenge in the House is much different,” Scalise said. The Senate GOP “doesn’t have a single SALT state member. There’s five states that are really affected by SALT, and New York and New Jersey were the most vocal,”

“We had over 30 members from those states,” Scalise said of 2017. “By the way we still have close to that today.”

For now, negotiations over taxes are mired in an ongoing strategic debate over whether to do two reconciliation bills, addressing border and energy policies first and taxes later, or enact all of the Republicans’ policy priorities together.

Still, there are plenty of Republicans who detest the idea of raising the SALT cap because they believe it unfairly benefits wealthy taxpayers in high-tax states.

“We’ve got people on both ends, Republicans and Democrats who don’t like it,” said House Ways and Means committee member Kevin Hern (R-Okla.).

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Congress

Nvidia’s Huang heads to Capitol Hill for AI talks

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July 27, 2026

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Nvidia CEO Jensen Huang will meet with lawmakers in Washington to discuss American leadership on artificial intelligence, the company said Monday.

A spokesperson for the chipmaker said Huang would hold talks with both Republicans and Democrats on Capitol Hill to talk about latest developments with the technology.

“Jensen is in DC to meet with leaders on both sides of the aisle to discuss American leadership in AI, including leading in open source,” the spokesperson said.

Huang is scheduled to sit down Tuesday with Sen. Mark Warner, the top Democrat on the Senate Intelligence Committee who has expressed serious concern about security threats following last week’s OpenAI autonomous cyberattack.

The senator’s office confirmed the meeting. Senate Intelligence Chair Tom Cotton (R-Ark.) did not immediately respond to a request for comment.

It comes as Huang defended open-source AI on X, writing that such models “strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.”

Huang’s visit comes as OpenAI CEO Sam Altman is also expected to meet with Warner, although a spokesperson for the senator said the talks were separate. Earlier Monday, Open AI announced it was in talks with Nvidia, a technology company that makes chips to use artificial intelligence, for a data center project.

The White House did not immediately respond to a request for comment.

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Texas Republican is under House Ethics investigation

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July 27, 2026

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The House Ethics Committee said in a statement Monday it is investigating Rep. Lance Gooden, a four-term Texas Republican.

It’s unclear what the committee is probing, but the Office of Congressional Conduct, an independent investigative branch of the House, sent over findings regarding Gooden to the committee June 10.

The Ethics panel plans to release an update on its investigation by Nov. 9. Committee representatives declined to comment beyond the statement.

In 2021, the Campaign Legal Center filed a complaint asking for an investigation into Gooden’s apparent failure to report his stock trades in a timely manner, which is a requirement under a federal law known as the STOCK Act. The complaint was sent to the OCC.

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Congressional Black Caucus members break with Jeffries, endorse against Thanedar in Michigan House race

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July 27, 2026

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A handful of members of the Congressional Black Caucus on Monday broke with Democratic Party leadership to endorse Michigan state Rep. Donavan McKinney in his bid to primary Rep. Shri Thanedar, an unusual move given that sitting members of the same party rarely endorse against each other.

Democratic Reps. Steven Horsford (Nev.), the former chair of the CBC, and Lateefah Simon (Calif.) called McKinney a “fighter.” Rep. Ilhan Omar (Mich.) praised McKinney as “the only trusted candidate” in the race. And Rep. Ayanna Pressley (Mass.) touted McKinney for “never [losing] sight of the people.”

“We need Donavan in Congress,” said Pressley.

The race between McKinney and Thanedar, who was elected in 2022, is the latest battleground in the ongoing ideological clash between the Democratic establishment and its progressive flank.

McKinney is hoping to capitalize on the latest wave of progressive successes in primaries, but Thanedar retains the power of the incumbency — and the backing of House Democratic leaders Hakeem Jeffries, Katherine Clark and Pete Aguilar.

Thanedar’s 2022 election marked the first time since 1955 that the majority-Black city of Detroit didn’t have a Black lawmaker representing it in Congress. And he won two years ago only after Adam Hollier, who was viewed as his most credible primary challenger, was disqualified from the ballot.

“It’s not just about having Black representation, but that is a part of what appropriate representation looks for,” Rep. Summer Lee (D-Pa.), who had previously backed McKinney, told Blue Light News. “You have a majority-Black district, and I think that there is certainly an appetite to see that again, or to at least make sure that a Black candidate has the opportunity to present themselves.”

In a phone call, Thanedar emphasized that he has worked closely with members of the CBC during his time in office, noting that the late Rep. Sheila Jackson Lee (D-Texas) was a mentor of his and, in addition to Jeffries, he has the endorsement CBC members like Rep. Bennie Thomspon (D-Miss.).

“I am fully aware that I am representing the Blackest city in America and I’m proud of it,” Thanedar, who is Indian-American, said. “My story is like Detroit’s story — I struggled through poverty, never say die, never gave up and I have that resilience that Detroit has. The resilience of Detroit is what my life is about.”

McKinney on Monday said he was “honored” by the endorsements.

“Millions of lives across the country have been made immeasurably better because of the hard work these members have done in Congress, and I look forward to working alongside these incredible leaders to pass critical legislation to protect voting rights, get big money out of our politics, and ensure all families have access to the resources they need to not just survive, but to truly thrive,” he said in a statement.

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