Democratic leaders prefer to enact the Reed-Heller three-month extension, which is on the floor, without an offset and then negotiate a one-year pay-for. But they're waiting to see what comes of the talks before making their next move.
"Some Republican senators are having conversations about possible offsets for a full-year extension," Senate Majority Leader Harry Reid (D-NV) said Thursday. "Let's see how they want to pay for it."
He said offsetting a short-term extension would be "ill-advised" as Congress would have to return to the issue in three months.