Senate Democrats look to offset FMAP

Senate Finance Chairman Max BaucusMax Sieben BaucusBooker tries to find the right lane  Top Lobbyists 2017: Hired Guns GOP tries to keep spotlight on taxes amid Mueller charges MORE (D-Mont.) is working on the third iteration of the extender bill and hopes to wind down the increase in FMAP spending that originated in last year's stimulus bill. 

The legislation could be introduced either Tuesday evening or Wednesday. Once the bill is unveiled, Senate Majority Leader Harry ReidHarry ReidBill O'Reilly: Politics helped kill Kate Steinle, Zarate just pulled the trigger Tax reform is nightmare Déjà vu for Puerto Rico Ex-Obama and Reid staffers: McConnell would pretend to be busy to avoid meeting with Obama MORE (D-Nev.) will seek to overcome procedural hurdles and file cloture on the measure.

Sen. Susan CollinsSusan Margaret CollinsOvernight Health Care: 3.6M signed up for ObamaCare in first month | Ryan pledges 'entitlement reform' next year | Dems push for more money to fight opioids Study: ObamaCare bills backed by Collins would lower premiums Right scrambles GOP budget strategy MORE (R-Maine) has advocated phasing out increased funding to FMAP for more than a year, but her support for the measure could hinge on whether other Republicans support the bill before she signals her intentions toward the legislation.

Sen. Olympia Snowe (R-Maine) is another conservative that could support the bill. But Democratic leaders need to address her concerns with the tax increase on S corporations to get her to consider supporting the measure. She is not expected to announce her opinion on the bill until she reviews the entire package, sources said. 

Sen. George Voinovich (R-Ohio) is also being sought after by Reid to support the bill. He appears to remain opposed to the bill, sources said. 

Sen. Joe Lieberman (I-Conn.) has signaled he could support the bill. However, earlier Tuesday he told The Hill he remains concerned about the deficit spending in the bill. If Baucus can reduce the deficit figure, Lieberman might support the bill, sources said.