(Scott Applewhite / AP)

Senate Republicans have a new headache. They don't want any money in the GOP health care bill to be used for plans that cover abortions, but the restrictions in the House version may not pass Senate rules. And since members don't want to create a new health care tax credit that isn't explicitly pro-life, they may just have to work within the current Affordable Care Act premium subsidy structure, according to three GOP Senate aides.

They'll still try to convince the parliamentarian that the anti-abortion restrictions comply with budget rules, and some Republicans remain optimistic that they'll win. But members were warned at their working group meeting on Tuesday that things aren't looking good and given the alternative options.

Public optimism: "I think they're still having this conversation with the parliamentarian, but I think everybody — and I think wisely so – is sort of gaming out how we deal with all these various issues" that may violate Senate rules, Sen. John Thune, the No. 3 Republican leader in the Senate, told me.

The response: Republicans "basically told McConnell to argue better" in persuading the parliamentarian that the anti-abortion restrictions should stay, a senior GOP aide said.

Sound smart: It's unclear how the ACA premium subsidies could be tweaked to be made more conservative or cost less money, but Republicans have said the way they're currently structured encourages insurers to charge higher premiums. Still, keeping the ACA subsidies is a serious option for Plan B.

Here's how different they are:

  • ACA premium subsidies are based on income, geography and the cost of a benchmark exchange premium.
  • The House bill's tax credits vary by age and phase out for higher-income people.

Plan C: If both of the other options fail, the third option is to end all tax credits and instead put $500 billion into the Children's Health Insurance Program, according to a senior GOP aide.

  • Fun fact: When I asked whether this was a joke, the aide said, "That's what several members asked."

Go deeper

Los Angeles and San Diego public schools will be online only this fall

Alhambra Unified School District. Photo: Frederic J. Brown/AFP via Getty Images

Public schools in Los Angeles and San Diego, the two largest public school districts in California, will not be sending children back to campuses in the fall and will instead administer online classes only due to concerns over the ongoing threat of the coronavirus.

Why it matters: The two districts, which together enroll about 825,000 students, are the largest in the country thus far to announce that they will not return to in-person learning in the fall, even as the Trump administration aggressively pushes for schools to do so.

This story is breaking news. Please check back for updates.

Updated 31 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 12,984,811 — Total deaths: 570,375 — Total recoveries — 7,154,492Map.
  2. U.S.: Total confirmed cases as of 2 p.m. ET: 3,327,388— Total deaths: 135,379 — Total recoveries: 1,006,326 — Total tested: 40,282,176Map.
  3. World: WHO head: There will be no return to the "old normal" for the foreseeable future — Hong Kong Disneyland closing due to surge.
  4. States: Cuomo says New York will use formula to determine if reopening schools is safe.
  5. Politics: Mick Mulvaney: "We still have a testing problem in this country."

Cuomo: New York will use formula to determine if it's safe to reopen schools

New York Gov. Andrew Cuomo said Monday that schools will only reopen if they meet scientific criteria that show the coronavirus is under control in their region, including a daily infection rate of below 5% over a 14-day average. "We're not going to use our children as guinea pigs," he added.

The big picture: Cuomo's insistence that New York will rely on data to decide whether to reopen schools comes as President Trump and his administration continue an aggressive push to get kids back in the classroom as part of their efforts to juice the economy.