A bipartisan group of senators is intensifying efforts to resurrect expired Obamacare subsidies, meeting behind closed doors Monday night to advance negotiations on a potential compromise solution. Led by Sens. Susan Collins (R-Maine) and Bernie Moreno (R-Ohio), the group has been working consistently through Congress’ holiday break to craft a proposal that could reach the Senate floor.

Collins indicated that the developing plan bears similarities to their original proposal. “Parts of the bill are similar to what Senator Moreno and I proposed originally, with a two-year extension, with some reforms in the first year and then more substantial reforms in the second year,” she explained.

The Collins-Moreno initial framework would extend healthcare subsidies for two years while implementing significant reforms. These include imposing an income cap on credits for households earning up to $200,000 and eliminating zero-cost premiums by requiring a minimum monthly payment of $25 — a measure designed to prevent fraud.

Sen. Tim Kaine (D-Va.), a regular participant in these discussions, expressed optimism about the progress. “We had a really good discussion last night,” Kaine said, though he declined to provide specific details on the proposal’s contents.

Senate Majority Leader John Thune (R-S.D.) received a briefing from Moreno Tuesday morning and characterized the bipartisan discussions as productive. However, he emphasized that any viable plan must meet several Republican requirements, including anti-fraud safeguards, a transition toward health savings accounts (HSAs), and stronger anti-abortion language.

“The keys are reforms, obviously, and then how do you navigate [the Hyde Amendment],” Thune noted. “I think that’s probably the most challenging part of this. But again, I think there’s potentially a path forward, but it’s something that has to get a big vote, certainly a big vote.”

The Hyde Amendment, which prohibits federal funding for abortions, has emerged as a significant sticking point in the negotiations. Senate Republicans are pushing for changes to ensure that no taxpayer dollars from the subsidies could fund abortion services, while many Democrats remain firmly opposed to such restrictions.

The debate took an unexpected turn Tuesday when President Donald Trump told House Republicans that “you have to be a little flexible” regarding the Hyde Amendment, triggering mixed reactions among Republican senators.

Sen. James Lankford (R-Okla.) reaffirmed his unwavering stance against abortion funding, stating, “I’m saying I’m not flexible in the value of human life. Life is valuable. I don’t believe some children are disposable, and some children are valuable. I think all children are valuable.”

Senate Democrats largely interpreted Trump’s comments as a potential opening for compromise. However, Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee, remained steadfast in his opposition to Hyde Amendment provisions. “I am not going to open the door to Hyde, given what happens and what has been seen historically when you do that,” Wyden said. “If you open the door, it will get drafty in a hurry, and I’m not going to let it happen.”

Moreno acknowledged the challenge, suggesting Republicans might need to compromise on this issue to advance healthcare legislation that could pass the Senate. He noted that current Obamacare language might not fully align with Hyde Amendment principles but changing that would be difficult given the current political landscape.

“But that’s not something that we’re looking — able to change right now,” Moreno said. “Because, quite frankly, if you put Hyde up to a vote among Democrats today, as opposed to Democrats 20 years ago, it would probably fail 46 to one on the Democrat side. So unfortunately, most Democrats today feel that there should be federal funding for abortion.”

The expiration of these healthcare subsidies affects millions of Americans who rely on the Affordable Care Act marketplace for their health insurance. Without congressional action, premium increases could put coverage out of reach for many households, creating urgency for lawmakers to find a bipartisan solution despite the ideological differences that have complicated healthcare legislation for years.