Proposal to send money directly to consumers’ health accounts rather than to insurance companies showed signs of breaking a stalemate on negotiations.

The Senate was driving toward a deal to end the record government shutdown, with the top Senate Republican saying to expect a vote as soon as Sunday but also warning that an unpredictable negotiation could still hit some snags.

“The deal is coming together,” Senate Majority Leader John Thune (R., S.D.) said as he headed to the Senate floor to open the chamber for business. “We’ll see where the votes are,” he said, warning that “this kind of stuff can drag out indefinitely.” As he headed back to his office, he said, “there’s going to be something to vote on—let’s put it that way.”

“We’re close to the finish line,” said Sen. Catherine Cortez Masto (D., Nev.), a centrist who is one of three Democrats who have repeatedly voted to fund the government.

The Senate Appropriations Committee released three full-year funding bills, covering veterans’ programs and the construction of military housing as well as the Agriculture Department and the legislative branch. An interim measure expected to temporarily fund the rest of the government still hadn’t been released, and Republicans didn’t specify how the main Democratic demand to extend expiring healthcare subsidies would be handled.

Any deal would still need approval in the House of Representatives, which has been out of session since Sept. 19. House Speaker Mike Johnson (R., La.) has put members on notice that he would give them 48 hours to return in the event the Senate passed a spending bill.

Democrats and Republicans have been locked for more than a month in a standoff over healthcare coverage, with Democrats repeatedly blocking a GOP bill to reopen the government. Without an extension of enhanced Affordable Care Act credits, which run roughly $30 billion a year, more than 20 million Americans are set to see increases in their insurance premiums. Open enrollment for next year started this month.

A key development that appeared to break the logjam in the negotiations was that Senate Republicans proposed that some healthcare funding be provided directly to households rather than be used to pay for a one-year extension of enhanced ACA subsidies.

That GOP proposal involves sending federal money into flexible-spending accounts instead of to insurance companies that use the money to offset the cost of premiums, so consumers pay a smaller monthly bill. The money could be used to cover deductibles and other out-of-pocket costs, which Republicans see as a way to give consumers more choice and control healthcare inflation.

“Let’s just move beyond our trench line, and let’s actually think creatively,” said Senate Health, Education, Labor and Pensions Committee Chairman Bill Cassidy (R., La.), the proponent of the leading idea, on the Senate floor Saturday. “And can we give just a little bit to find something which actually benefits the patient but may also get us out of this situation?”

Republicans had previously said there would be no negotiations until Democrats ended their blockade, but the new healthcare pitch—despite many questions about how it would work and when it could be rolled out—showed the GOP could be flexible on that stance.

Speaking to reporters on Sunday before attending a football game, President Trump said, “Things are going along very well,” and added, “the Democrats have to open it up.”

The potential deal seemed to give Democrats little in exchange for voting to end the shutdown, prompting reticence from some in the party. 

“I’m not voting for these bills,” said Sen. Ruben Gallego (D., Ariz.), complaining about the lack of a guarantee that the healthcare subsidies will be extended into next year. Senate Republicans have for weeks guaranteed a vote but not an outcome. “That’s a show vote.” 

Thune has kept the Senate in session all weekend, as lawmakers see urgency to end the shutdown amid growing airport snarls and delays in food aid being distributed to millions of Americans.

Adding to the pressure was the fact that the Trump administration on Saturday told states to undo any steps they have taken to issue full federal food-assistance benefits for November. The memo from the Agriculture Department came after a Supreme Court order on Friday paused a lower-court order directing the Trump administration to fully fund food aid under the Supplemental Nutrition Assistance Program, or SNAP.

Senate Minority Leader Chuck Schumer (D., N.Y.) rolled out the idea for a one-year extension of enhanced ACA subsidies on Friday as the price of Democratic votes to fund the government. But the idea was promptly rejected by Republicans, who said it showed Democrats were desperate. Democrats had previously proposed a permanent extension of the enhanced ACA credit, which was introduced during the Covid-19 pandemic.

Still, the overture looked to point to actual negotiations, and by late Friday Cassidy was pitching his idea on the floor—and drawing engagement from Democrats like Sen. Maria Cantwell (D., Wash.), who took to the floor to ask about his idea.

Trump then followed with a social-media message Saturday morning. “We must stop taxpayer money from going to insurance companies and instead give it directly to Americans in HSA-style accounts and let them buy the healthcare they want,” he said on Truth Social.

That was viewed within the Senate as an endorsement of the sort of approach being pursued by Cassidy—albeit suggesting a broader version that would put the entire federal subsidy into health savings accounts. Sen. Rick Scott (R., Fla.) said in a separate post, “Totally agree,” and added: “I’m writing the bill right now.”

Kevin Hassett, director of the National Economic Council, said that Trump had discussed the idea with Cassidy.

“Why not take the people who have higher healthcare premiums and just mail them a check and let them decide?” Hassett said on CBS’s “Face the Nation.”

It isn’t clear exactly how the Cassidy accounts would work. Flexible-spending accounts, which are typically used with employer coverage, not ACA plans, are tax-advantaged setups that consumers can fund themselves, up to around $3,300 a year. The tax-free money can then be used for a variety of health needs that would typically be paid for out of the enrollee’s pocket, including toward hospital or doctor care, or other expenses such as glasses. However, the money can’t be used to pay an insurance premium. 

A different type of account, known as a health savings account, or HSA, can currently be used with ACA plans, but they are only allowed if the coverage has a deductible above a certain level—now set at $1,650 for an individual or $3,300 for a family. A deductible is the amount an enrollee pays before coverage kicks in. 

A third type of setup, known as an individual coverage health reimbursement arrangement, can be used in a different way. Employers can put money in these accounts, and the funding can be applied toward workers’ premiums for coverage that they purchase themselves through the ACA marketplaces.  

Some Democrats don’t like the broader idea of rerouting the subsidies. They view it as making it harder for people to buy health insurance and particularly difficult on lower-income people. 

“This is, unsurprisingly, nonsensical. Is he suggesting eliminating health insurance and giving people a few thousand dollars instead?” said Sen. Chris Murphy (D., Conn.) in reaction to Trump’s post.

 But others were open to engaging with Republicans. On Saturday, multiple Democrats approached Cassidy or said they had spoken with him.

“Republicans are now talking about how they want to go after big insurance companies,” said Sen. Ron Wyden (D., Ore.), the top Democrat on the Senate Finance Committee. “If they’re serious, I’m all in.” But he also said that the idea couldn’t be implemented right away.

“If you don’t do it right, you’ll have people in January, small businesses, who will have their business closed because they will not be able to keep the doors open or pay their employees, cover healthcare and the like,” Wyden said.