Senate Democrats look to offset FMAP

Senate Finance Chairman Max BaucusMax Sieben BaucusBottom line Overnight Defense: McCain honored in Capitol ceremony | Mattis extends border deployment | Trump to embark on four-country trip after midterms Congress gives McCain the highest honor 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 Mason ReidThe Hill's Morning Report — Pelosi makes it official: Trump will be impeached Doctors are dying by suicide every day and we are not talking about it Impeachment trial throws curveball into 2020 race MORE (D-Nev.) will seek to overcome procedural hurdles and file cloture on the measure.

Sen. Susan CollinsSusan Margaret CollinsGiffords, Demand Justice to pressure GOP senators to reject Trump judicial pick Senate confirms eight Trump court picks in three days Lawmakers call for investigation into program meant to help student loan borrowers with disabilities 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.

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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.