The Senate is expected to take another stab at passing a three-month unemployment insurance extension as early as next week.

Senate Majority Leader Harry ReidHarry Mason ReidMcConnell not yet ready to change rules for Trump nominees The Hill's Morning Report — Sponsored by CVS Health — Trump’s love-hate relationship with the Senate Trump to press GOP on changing Senate rules MORE (D-Nev.) said Wednesday that it was still a Democratic priority and negotiations have continued despite earlier failures in January.

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Democrats tried to pass an unpaid-for-three-months extension, which failed because Republicans said they wanted the $6.5 billion cost offset. Democrats then tried to pass an 11-month extension that was fully paid for by extending sequestration for an additional year, which would generate roughly $25 billion. Republicans balked at that plan as well and demanded an open amendment process.

“The Republicans said they wanted it paid for and we figured out a way to pay for it,” Reid said of the new deal. “We hope we can get five courageous Republicans to step over the line [by voting to end debate].”

Sen. Jack ReedJohn (Jack) Francis ReedDefense bill moves forward with lawmakers thinking about McCain Overnight Defense: Trump aide's comment mocking McCain sparks outrage | Haspel gets another 'no' vote | Pompeo floats North Korea aid for denuclearization Politicians, media explode over White House aide's comments MORE (D-R.I.) has been negotiating with GOP Sens. Dean Heller (Nev.) and Rob Portman (Ohio) to find a deal. Reed’s latest proposal is for a three-month extension that is paid for through “pension smoothing” — a pay-for used in the 2012 highway bill. 

Pension smoothing reduces pension expenditures for companies in the short term creating more taxable income, but it’s unclear how long it would take for this accounting procedure to generate the $6.5 billion. Some Republicans have also described the practice as a budget “gimmick” that risks greater liability in the long run.

Nearly 1.3 million people lost their long-term unemployment benefits at the end of December. Unemployment insurance was designed to help those looking for work in states that can’t afford to pay unemployment benefits for more than six months. Democrats have said they plan to use Republican refusal to pass a short-term extension against them in the 2014 mid-term elections.