Republican lawmakers say the U.S. House of Representatives plans to vote on a bill Tuesday to reopen the government and avoid a financial default, as hopes rise for a congressional deal to end a political standoff.
Congressman Darrell Issa says the House plan is similar to a measure being debated in the Senate.
Both bills would fund the government for three months and raise the government's debt limit for nearly four months .
The House plan asks for two concessions on the new U.S. health care reform bill. These include a two-year delay of a medical device tax and the elimination of health care subsidies for U.S. President Barack Obama, his Cabinet officials, and members of Congress.
The White House immediately rejected the House proposal. Mr. Obama has repeatedly refused to negotiate reforms to the health care law.
Lawmakers say the Senate might not sign off on its plan until Wednesday, close to a Thursday deadline when the U.S. Treasury Department has said it will reach its borrowing limit and risk default.
If the debt ceiling is not raised by Thursday, the United States may not be able to pay all its bills. It is unclear whether Congress can meet that deadline even if Democratic and Republican party leaders reach an agreement in the Senate. Conservative hardliners such as Texas Republican Ted Cruz might force a delay in a final vote.
Speaker John Boehner and other top Republicans are under strong pressure from conservative congressmen who oppose concessions. Many of them say they will not back a deal that fails to alter the Affordable Care Act, also known as "Obamacare."
Any deal would have to be approved by the full House and Senate before it could be signed by President Obama.
On Monday, Democratic Senate Majority Leader Harry Reid and Republican Senate Leader Mitch McConnell expressed optimism that a deal can be reached.