The SALT deduction is a top priority for a number of Democrats representing blue states. Its supporters include Senate Majority Leader Chuck Schumer, House Speaker Nancy Pelosi and — during the Democratic primary — Biden himself.

The president is now signaling he won’t fight to lift the caps that former President Trump imposed as part of a 2017 tax package that lowered corporate rates.

The White House omitted lifting the SALT caps from Biden’s first infrastructure and tax package, which the president unveiled Wednesday. But some Democrats held out hope that SALT would be addressed in a second package to be announced in the coming weeks.

White House press secretary Jen Psaki told reporters on Thursday that eliminating SALT “is not a revenue raiser … it would cost more money,” but if Democrats “want to propose a way to pay for it, and they want to put that forward, we are happy to hear their ideas.”