In a significant legislative development, the U.S. House of Representatives passed a sweeping new tax package early Thursday morning, delivering several key wins for the Hudson Valley—many championed by Congressman Mike Lawler (NY-17). Among the most notable provisions is a long-anticipated increase in the cap on State and Local Tax (SALT) deductions, a change expected to bring substantial relief to property tax-burdened families in Rockland and Westchester Counties.
Under the new bill, the SALT cap will rise from $10,000 to $40,000 for the next decade, providing immediate relief to middle-class households. According to projections, 93% of families in the Hudson Valley earning under $300,000 will now be able to fully deduct their state and local taxes—an issue Lawler has pushed aggressively since taking office.
Beyond the SALT adjustment, the legislation includes several provisions aimed at supporting local families, workers, and small businesses. Key highlights include the preservation of popular Trump-era tax cuts, such as the $2,000 Child Tax Credit and small business deductions that benefit tens of thousands of families and entrepreneurs in the district. Additionally, the bill prevents looming tax hikes that could have cost Hudson Valley households an average of nearly $4,000 annually.
The package also features initiatives to reduce healthcare costs and expand access, including a delay in cuts to safety net hospitals, improved Medicaid access for sick children, and reforms targeting pharmacy benefit managers. Federal taxes on tip income and overtime pay are also being eliminated, a move poised to benefit restaurant workers, first responders, and hourly employees throughout the region.
In the education sector, the bill expands Pell Grant eligibility to include workforce training and introduces loan deferments for medical and dental residents during their training. It also provides support to rural and farm families by adjusting how small business value is calculated for student aid.
The bill passed with bipartisan support and now heads to the Senate for further consideration. Congressman Lawler hailed the legislation as a balanced compromise that reflects real progress for working families in New York.
“Promises made, promises kept,” Lawler posted on social media following the vote, emphasizing the importance of continued fiscal responsibility at both the state and federal levels.
The bill passed with bipartisan support??? Not a single Democrat voted for it! Here’s some of the things you didn’t mention:
It will add about $3.8 trillion to the federal government’s $36.2 trillion in debt over the next decade, according to the nonpartisan Congressional Budget Office. The bill cuts at least $715 billion in healthcare spending, mostly from Medicaid, and $300 billion from the Supplemental Nutrition Assistance Program, causing more than 2.7 million American households to lose benefits. Because the massive debt increase in the measure triggers a 2010 law requiring offsets, it will cut Medicare, as well, by an estimated $500 billion. Americans making between about $17,000 and $51,000 will lose about $700 a year. On average, Americans with incomes of less than $17,000 will lose more than $1,000 a year. But if you are among the top 0.1% of earners, you’re in luck: you’ll gain nearly $390,000 a year.
You took the words out of my mouth!! This is NOT a win for the American people unless they are in the top 1%. Mike Lawler talks out of both sides of his mouth. These cuts to Medicaid, SNAP benefits & Medicare cuts like a knife into the hearts of many millions of people that can’t afford to lose them.