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What does the SALT negotiations mean for Long Islanders?

New York lawmakers are still looking to lift the SALT tax cap. This comes as President Trump has made adjusting the cap on state and local tax deductions a priority for tax legislation. Newsday's White House Correspondent Tom Brune reports.  Credit: Newsday Studios

WASHINGTON — As the White House takes aggressive steps to shrink government, key New York lawmakers promised this week that they will use the clout they have on taxing and spending policies to protect and advance their priorities for Long Island.

Their top issue — lifting the $10,000 federal income tax cap on state and local tax deductions, or SALT — got a boost Friday when White House spokeswoman Karoline Leavitt said President Donald Trump included "adjusting the SALT cap" as a priority for tax legislation.

A second top priority for the lawmakers is continuing federal funding for Brookhaven National Laboratory in Upton, with its funding needs over the next decade ranging between $1.6 billion and $2.6 billion.

Yet the Trump administration’s aim to cut as much as $1 trillion from federal spending in an effort led by billionaire Elon Musk also presents significant challenges for New York legislators of both parties in maintaining federal funding for local issues.

On the front line in the coming battle over taxes and spending will be Rep. Tom Suozzi (D-Glen Cove), Rep. Nick LaLota (R-Amityville) and Sen. Kirsten Gillibrand (D-N.Y.), who won coveted assignments to key committees that shape federal fiscal policy.

Suozzi, who served three terms in the House before making an unsuccessful run for New York governor in 2022, won a special and regular election last year, and this year reclaimed his seat on the powerful tax-writing House Ways and Means Committee.

Gillibrand and LaLota won first-time seats on the appropriations committee, giving them a voice in determining how the administration will spend discretionary funding, now totaling nearly $1.7 trillion — a sum that is in Trump’s crosshairs for deep cuts.

Meanwhile, Senate Minority Leader Chuck Schumer (D-N.Y.) will play a key role as one of the top four leaders in Congress, who for years have negotiated and determined each year’s final taxing and spending bills.

Suozzi, Gillibrand and LaLota spoke with Newsday about their fiscal priorities this year.

Suozzi successfully passed three bills in the House to lift the $10,000 cap on SALT deductions, but the Senate never took up or passed any of those pieces of legislation.

"Number one, of course, is SALT. That'll always be my biggest priority," he told Newsday in a phone interview.

His number two priority is a bill he plans to file that would offer a corporate tax discount to corporations if they give 5% of their stock to their lowest 80% paid employees.

"The problem is, is that most of the stock in America is held by just a very small group of people, and we need to rebuild the middle class in America. And I think one of the ways to do that is to give employees part ownership of the companies they work for," he said.

And he added, "We're going to be very involved in the reconciliation process and the whole issue of taxes and debt, things like that."

Gillibrand told Newsday in a phone interview that she is excited about her appointment to the Senate Appropriations Committee, where she will serve as the top Democrat on the Transportation, Housing and Urban Development subcommittee.

Gillibrand said that as a member of the appropriations committee, she'll have an easier time delivering for New Yorkers because she'll have "direct advocacy" on what kinds of investments do the most for New York.

"One that’s particular to Long Island will be the Brookhaven National Lab, to make sure that the Electron Ion Collider gets fully funded," Gillibrand said. "It's going to cost somewhere between $1.6 billion and $2.6 billion over a decade. So, the work has already started, and we need to make sure we fund it every year."

She said that she has earmarked more than $50 million in water infrastructure projects for Long Island over the last four years, adding, "So I’ll be trying to match that and do even more."

Another thing Gillibrand said she can work on is affordable housing. "On Long Island and in New York City everyone is desperate to get rental costs down and to get house purchase costs down," she said.

"My priorities, generally speaking, are twofold," LaLota said in an interview in his Washington office.

"While I'm looking for opportunities to have savings in the way that we spend money as a federal government, I also want to protect Long Island’s interests, and want to make sure that Long Island and New York get its fair share."

LaLota said he has joined with four others, including Rep. Andrew Garbarino (R-Bayport), to fight for a SALT fix.

"Leadership knows they have to negotiate with us on anything because they know that we will vote no against their bill unless there's a fix to SALT," he said.

Other top priorities, he said, include funding for Brookhaven National Laboratory, which is in his district, and preserving funding for Northeast rail. He also mentioned investments in resiliency and infrastructure to protect his district’s thousand-mile coastline from flooding and erosion, and funding for the National Flood Insurance Program.

WASHINGTON — As the White House takes aggressive steps to shrink government, key New York lawmakers promised this week that they will use the clout they have on taxing and spending policies to protect and advance their priorities for Long Island.

Their top issue — lifting the $10,000 federal income tax cap on state and local tax deductions, or SALT — got a boost Friday when White House spokeswoman Karoline Leavitt said President Donald Trump included "adjusting the SALT cap" as a priority for tax legislation.

A second top priority for the lawmakers is continuing federal funding for Brookhaven National Laboratory in Upton, with its funding needs over the next decade ranging between $1.6 billion and $2.6 billion.

Yet the Trump administration’s aim to cut as much as $1 trillion from federal spending in an effort led by billionaire Elon Musk also presents significant challenges for New York legislators of both parties in maintaining federal funding for local issues.

WHAT NEWSDAY FOUND

  • Key New York lawmakers promised this week that they will use the clout they have on taxing and spending policies to protect and advance their priorities for Long Island.
  • Their top issue of lifting the $10,000 SALT cap got a boost when a White House spokesperson said President Donald Trump included "adjusting the SALT cap" as a priority for tax legislation.
  • A second top priority for the lawmakers is continuing federal funding for Brookhaven National Laboratory, with its funding needs over the next decade ranging between $1.6 billion and $2.6 billion.

On the front line in the coming battle over taxes and spending will be Rep. Tom Suozzi (D-Glen Cove), Rep. Nick LaLota (R-Amityville) and Sen. Kirsten Gillibrand (D-N.Y.), who won coveted assignments to key committees that shape federal fiscal policy.

Suozzi, who served three terms in the House before making an unsuccessful run for New York governor in 2022, won a special and regular election last year, and this year reclaimed his seat on the powerful tax-writing House Ways and Means Committee.

Gillibrand and LaLota won first-time seats on the appropriations committee, giving them a voice in determining how the administration will spend discretionary funding, now totaling nearly $1.7 trillion — a sum that is in Trump’s crosshairs for deep cuts.

Meanwhile, Senate Minority Leader Chuck Schumer (D-N.Y.) will play a key role as one of the top four leaders in Congress, who for years have negotiated and determined each year’s final taxing and spending bills.

Suozzi, Gillibrand and LaLota spoke with Newsday about their fiscal priorities this year.

Suozzi

Suozzi successfully passed three bills in the House to lift the $10,000 cap on SALT deductions, but the Senate never took up or passed any of those pieces of legislation.

"Number one, of course, is SALT. That'll always be my biggest priority," he told Newsday in a phone interview.

His number two priority is a bill he plans to file that would offer a corporate tax discount to corporations if they give 5% of their stock to their lowest 80% paid employees.

"The problem is, is that most of the stock in America is held by just a very small group of people, and we need to rebuild the middle class in America. And I think one of the ways to do that is to give employees part ownership of the companies they work for," he said.

And he added, "We're going to be very involved in the reconciliation process and the whole issue of taxes and debt, things like that."

Gillibrand

Gillibrand told Newsday in a phone interview that she is excited about her appointment to the Senate Appropriations Committee, where she will serve as the top Democrat on the Transportation, Housing and Urban Development subcommittee.

Gillibrand said that as a member of the appropriations committee, she'll have an easier time delivering for New Yorkers because she'll have "direct advocacy" on what kinds of investments do the most for New York.

"One that’s particular to Long Island will be the Brookhaven National Lab, to make sure that the Electron Ion Collider gets fully funded," Gillibrand said. "It's going to cost somewhere between $1.6 billion and $2.6 billion over a decade. So, the work has already started, and we need to make sure we fund it every year."

She said that she has earmarked more than $50 million in water infrastructure projects for Long Island over the last four years, adding, "So I’ll be trying to match that and do even more."

Another thing Gillibrand said she can work on is affordable housing. "On Long Island and in New York City everyone is desperate to get rental costs down and to get house purchase costs down," she said.

LaLota

"My priorities, generally speaking, are twofold," LaLota said in an interview in his Washington office.

"While I'm looking for opportunities to have savings in the way that we spend money as a federal government, I also want to protect Long Island’s interests, and want to make sure that Long Island and New York get its fair share."

LaLota said he has joined with four others, including Rep. Andrew Garbarino (R-Bayport), to fight for a SALT fix.

"Leadership knows they have to negotiate with us on anything because they know that we will vote no against their bill unless there's a fix to SALT," he said.

Other top priorities, he said, include funding for Brookhaven National Laboratory, which is in his district, and preserving funding for Northeast rail. He also mentioned investments in resiliency and infrastructure to protect his district’s thousand-mile coastline from flooding and erosion, and funding for the National Flood Insurance Program.

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