WASHINGTON—Senate Republican negotiators say they are closing in on a deal with Democrats to extend and overhaul the federal health-insurance subsidies that expired at the end of last year, though language related to abortion coverage remains a major sticking point.

An emerging bipartisan deal would include a two-year extension with income caps; end zero-dollar premiums; and extend the open enrollment period.

Lawmakers are moving to cut funding but rejecting severe reductions sought by the White House to energy and environment programs.

The Senate is staring down multiple flash points in the coming months as lawmakers head into a year colored by electoral politics but with plenty of policy fights on the horizon. Lawmakers wrapped

The Capitol is quiet this week, with Congress out of town for its end-of-year recess, but lawmakers are gearing up for what promises to be a hectic few weeks of work when the Senate returns on Monday and the House a day later.

The deal struck between Senate Republicans and Democrats to reopen the government allows for federal paychecks and other funding components to resume, with senators also set to hold a vote on health care tax credits. The Senate voted 60-40 on Monday to ...

Funding for much of the federal government runs out Jan. 30. If Congress doesn't approve a deal by then, it could lead to a partial shutdown.