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CQ POLITICS NEWS Senate Democrats are discussing with a pair of pivotal moderate Republicans a scaled-down version of a tax and benefits extension bill that they have so far failed to move.
The most significant change being discussed would shrink the cost of a $24.2 billion provision that extends extra federal Medicaid funds to struggling states. In a new version, which was circulating among lobbyists Tuesday morning but not released or confirmed by lawmakers and aides, the federal assistance first enacted in the 2009 stimulus law would be gradually phased down over the coming fiscal year.
Democrats have been insisting that the Medicaid money remain in the bill to aid vulnerable patients and help cushion the economy against potential layoffs in state governments. The House removed the money last month to cut the cost of the bill, but, under pressure, the Senate added it back.
The previous version of the bill would have cost about $118 billion and increased the deficit by $55.1 billion. That was the main reason that moderate Republicans and two Senate Democrats refused to support a debate-limiting cloture motion June 17.
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