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House Republicans work on finalizing budget bill specifics regarding tax credits and SALT.

Conversations are taking place on Sunday, both in person and over the phone, as House Republicans aim to finalize a significant bill contract.

The discussions are focused on a few key areas, with the Budget Committee set for a revamp Sunday night.

Republicans are working to reach a consensus on the Green Energy Tax Credit, which is expected to play a crucial role. Additionally, there are ongoing discussions about job requirements for Medicaid recipients.

Future agreements in this realm are likely to resemble informal or “gentleman’s agreements,” according to sources.

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Another contentious topic is the salt deduction for state and local taxes, particularly important for moderate Republicans from high-tax states like New York and California.

The “Salt Caucus” is advocating for tax changes that could require about $600 billion, while the current proposal stands at $200 billion. Negotiations are ongoing to create a compromise that allows for a more favorable salt deduction as part of the bill’s 10-year budget implementation.

To bypass Senate filibusters, this measure must not increase the deficit over that decade-long period.

Reports indicate that no changes will be made to the bill before the Budget Committee meets Sunday night. Meanwhile, the White House is exploring possible “Manager Amendments” for the Rules Committee encounter later this week, aiming to finalize the bill’s text.

GOP leadership seems optimistic, feeling secure in their position, “unless others start adding complications.”

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The goal is to have the bill text available earlier this week, leading to a Rules Committee meeting on Wednesday, with a possible vote on Thursday. However, a senior GOP source cautioned that the timeline might quickly shift during the Rules Committee meeting on Tuesday, where amendments could be introduced.

Regarding the Budget Committee meeting scheduled for Sunday night:

A resolution faced setbacks on Friday, complicating the progress of all committee texts. Movement forward hinges on actions taken by the Budget Committee, making the evening meeting crucial.

Discussion will likely be minimal, primarily focused on the numbers. GOP leadership and the White House need to address concerns from those who previously voted against the measures. If all goes smoothly, it could be resolved relatively quickly.

This is how it may unfold:

The first step involves a vote to reconsider the failed resolution from Friday. If this fails, they won’t be able to proceed.

However, if they pass that hurdle, they’ll re-vote on the earlier proposal. This is a critical moment; if the Budget Committee approves the package, it will advance to the Rules Committee and then to the House floor.

After that vital vote on disputable issues, there’ll be five additional non-binding votes.

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