Rep. Lois Capps (D-Calif.) said the administration and the state are in a Catch-22, because deep cuts are going to have to come from somewhere.
"It's going to take some sitting down and really negotiating to get a resolution of this, by all parties," Capps told The Hill.
The proposed cuts are "untenable," Capps added, "and that's what we told Dr. Berwick."
At the same time, she acknowledged, if the state's request is rejected Brown will have to make deep cuts elsewhere.
CMS was expected to make a decision by Sept. 30, but it has been delayed as staffers request more information from California. Still, congressional staffers said they're expecting a decision any day.
CMS did not immediately respond to a request for comment.