In a significant development in Washington, the White House is reportedly on the verge of securing a deal on the contentious state and local tax (SALT) deduction, following intense last-minute discussions involving key GOP members from blue states and Senate Republicans. This breakthrough comes amidst a series of negotiations aimed at overcoming one of the major hurdles in passing a broader GOP legislative package.

Sources close to the matter, who requested anonymity to speak freely, indicated that Treasury Secretary Scott Bessent has played a pivotal role in these discussions. Bessent, who is recognized for his adept handling of complex political negotiations, is scheduled to meet with Senate Republicans later today to further this agenda.

House Speaker Mike Johnson, addressing the media on Friday, expressed optimism about the negotiations' trajectory. "There was a lot of progress yesterday," Johnson remarked, referencing Thursday's meeting between SALT-focused Republicans and Treasury officials. He anticipates that the SALT issue will be "resolved in a manner that everybody can live with." While he conceded that the resolution might not please everyone fully, he stressed that such is the nature of compromise in legislative processes.

Johnson also hinted at broader implications for the GOP's major legislative ambitions, suggesting that resolving the SALT deduction issue could pave the way for addressing other outstanding concerns in the megabill. "The other issues, I think, will be resolved, hopefully today, and we can move forward," he said, signaling a potentially productive day ahead in Congress.

However, not all involved parties share Johnson's sense of impending resolution. New York Representative Nick LaLota, a notable SALT holdout, voiced his skepticism and detachment from the reported agreement. "If there was a deal, I’m not a part of it,” LaLota stated, highlighting the ongoing challenges within the GOP ranks to reach a consensus.

As negotiations continue to unfold, the political landscape remains watchful. The outcome of these talks could significantly influence the legislative capabilities of the GOP and potentially reshape certain financial aspects for taxpayers in high-tax states. The next few days are crucial as lawmakers work to forge a path forward that balances varied interests and positions within their ranks.

Contributions to this report were made by Jordain Carney.