Democratic senators were to meet with President Barack Obama at the White House Tuesday to discuss health care reform, amid reports of new compromise likely to infuriate liberal lawmakers.
The Senate has been struggling to pass its own version of a health care overhaul amid tough divides within the Democratic caucus on the bill's language.
But Senate Majority Leader Harry Reid and several senior Democratic senators told reporters Monday evening that they were closer than ever to passing legislation.
Their renewed optimism came amid reports that a compromise designed to compensate for doing away with a government-backed "public option" health plan had been dropped after opposition from Independent Senator Joseph Lieberman.
The Senate on Sunday passed a $1.1 trillion spending bill with increased budgets for vast areas of the federal government, including health, education, law enforcement and veterans' programs.
The more-than-1,000-page package, one of the last essential chores of Congress this year, passed 57-35 and now goes to President Barack Obama for his signature.
The weekend action underlined the legislative crush faced by Congress as it tries to wind up the year. After the vote, the Senate immediately returned to the debate on health care legislation that has consumed its time and energy for weeks. Senate Democrats hope to reach a consensus in the coming days on Obama's chief domestic priority.
Senate Democrats who thought they had found a workable compromise on health care reform learned otherwise from independent Sen. Joe Lieberman over the weekend.Read More
The Connecticut senator, whose vote is critical to the bill's prospects, threatened Sunday to join Republicans in opposing health care legislation if it permits uninsured individuals as young to 55 to purchase Medicare coverage.
Lieberman expressed his opposition twice Sunday: first in an interview with CBS, and more strongly later, according to Democratic officials, in a private meeting with Senate Majority Leader Harry Reid.
President Barack Obama on Saturday applauded House passage of an ambitious restructuring of federal financial regulations designed to correct failures that led to the economic meltdown.
He called for quick action by the Senate "because we should never again find ourselves in the position in which our only choices are bailing out banks or letting our economy collapse."
The bill would grant the government new powers to split up companies that threaten the economy, create a new agency to oversee consumer banking transactions and shine a light into shadow financial markets that have escaped federal oversight.
A loophole in the Senate health care bill would let insurers place annual dollar limits on medical care for people struggling with costly illnesses such as cancer, prompting a rebuke from patient advocates.
The legislation that originally passed the Senate health committee last summer would have banned such limits, but a tweak to that provision weakened it in the bill now moving toward a Senate vote.
As currently written, the Senate Democratic health care bill would permit insurance companies to place annual limits on the dollar value of medical care, as long as those limits are not "unreasonable." The bill does not define what level of limits would be allowable, delegating that task to administration officials.
House Democrats head into the final stretch on a long-awaited Wall Street regulation bill with two crucial and contentious votes looming before they can declare victory on one of President Barack Obama's legislative priorities.
The sweeping regulatory overhaul aims to address the myriad conditions that led to last year's financial crisis.
Test votes during two days of debate indicate that Democratic support for the underlying legislation will hold in final passage. Prodded by moderates, however, nearly half the Democrats teamed up with Republicans late Thursday to loosen restrictions on derivatives and reject tougher regulations.
Long-silent black members of Congress are fed up with what they see as President Barack Obama's failure to deliver on promises to the minority communities.
So they are stepping up efforts to make Obama put up or shut up.
And their frustration is starting to show.
A congressional panel voted on Wednesday to subpoena a married couple who slipped into a White House dinner, making them the world's most famous gate crashers and raising questions about security.
The subpoenas direct Tareq Salahi and his wife, Michaele Salahi, to appear on January 20 before the House of Representatives Homeland Security Committee.
On back-to-back votes of 26-3 and 27-2, the committee authorized the subpoenas of the two in response to the Virginia couple's refusal to come before the panel voluntarily last week.
Democrats in the Senate agreed Tuesday night to drop the controversial public option plan from health care reform legislation and replaced it with a privatized program with government oversight.
The deal, however, still allows creation of a government-run program if private companies cannot deliver what Uncle Sam wants.
Senator Majority Leader Harry Reid, under fire for what many consider lackluster leadership in the health care debate and other issues, hails the deal as a "breakthrough" and says deal will "overcome a real problem" Democrats had with the on-again, off-again public option.
But the deal, hailed by Democrats, still faces opposition from Republicans and possibly some Democrats so the debate may be far from over.
They may still call it a "public plan," but private insurers — not the government — would offer coverage under a compromise Democrats are considering to win Senate passage of President Barack Obama's health care overhaul.
The latest idea bears little resemblance to the original vision outlined by liberals, and embraced by Obama, during the 2008 presidential campaign. That called for the government to sell insurance to workers and their families in competition with industry giants like UnitedHealthcare.