The subsidies were at the heart of the Democrats’ demands in the government shutdown fight that ended earlier this month. Most Democratic lawmakers had insisted on a straight extension of the tax credits, which expire at the end of the year, as a condition of keeping the government open.

Eligibility for the Obamacare subsidies, which were implemented during the COVID-19 pandemic to help people afford health care coverage, would be capped at 700% of the federal poverty level, according to two people with knowledge of the proposal. The people spoke to The Associated Press on condition of anonymity to discuss a White House proposal that is in draft form.

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