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Happy Thursday morning.

Breaking overnight: At around 2 a.m., Senate Majority Leader Chuck Schumer went to the floor and said Republicans and Democrats are on the brink of an agreement that would allow the Senate to finish work on the $1.66 trillion omnibus spending bill quickly. He scheduled a nomination vote for 8 a.m. in a bid to put the finishing touches on the potential deal.

Here’s what Schumer said:

Remember: The two sides need a time agreement because without it, debate over this sprawling, 4,155-page package could drag into next week. Government funding runs out Friday night. And Christmas is Sunday, of course.

When many of you went to bed last night, the headlines indicated that the entire omnibus was falling apart because of a disagreement over Title 42 immigration policy. Yet if there’s one thing to know about these kinds of negotiations, it’s that the rhetoric often gets most inflammatory right before there’s a big breakthrough. Hopefully.

So let’s rewind the tape a bit. The omnibus package stalled out on Wednesday night due to a partisan clash over the U.S.-Mexico border.

Sen. Mike Lee (R-Utah) has an amendment that would extend the Biden administration’s use of Title 42 authority at the border. Title 42 restricts asylum claims for migrants seeking safe haven in the United States. The Trump and Biden administrations have used this authority to quickly expel millions of migrants since the start of the Covid-19 pandemic, but it is about to expire unless the Supreme Court rules otherwise.

Lee’s amendment was going to be considered at a 51-vote threshold, and there’s a good chance it would pass.

Top Democrats, including Sen. Bob Menendez of New Jersey, urged their leadership not to give in to GOP demands on the Lee amendment. Democrats have said including the provision in the omnibus could sink the massive spending package in the House.

Democrats also point out that Senate Minority Leader Mitch McConnell and his GOP colleagues scored some major policy victories in this package, including a huge increase in defense spending. All of that’s in danger if the omnibus doesn’t pass. Republicans have more to lose than gain if the package were to fall apart.

And there’s the matter of $45 billion in military and economic aid for Ukraine – which Ukrainian President Volodymyr Zelensky pleaded for Wednesday night during a historic address to Congress (more on that below) – plus another $40 billion in disaster funding that would be endangered if the omnibus goes down.

Republicans counter that Lee is within his rights to offer this amendment and Democrats – and the White House – need to figure a way out of this jam. They note that there are some legislative tactics that Schumer could use to end the logjam, including offering moderate Democrats a vote on an alternative to offset Lee’s amendment.

“This is on the Democrats to resolve,” one Senate GOP insider told us.

Late Wednesday night, Senate leaders were still haggling over the germaneness of the Lee amendment, which is what dictates the threshold for passage. The parliamentarian has ruled that the amendment can be considered under a 51-vote threshold, which dramatically raises the stakes on the proposal.

Lee is insisting on a vote on his amendment, saying that if it doesn’t come up, “it probably will cost [Democrats] the omnibus” during an appearance on Fox News Wednesday night.

If this issue is resolved – and we still believe it will be – then the omnibus will be on a path toward final passage in the Senate. There are roughly 17 amendments under consideration. There are also a number of nominations the leadership wants to clear, although some of those can be voiced voted.

The Senate moves quickly when it wants to, as well all know. Senators also are aware of the weather reports on the massive storm about to hit the Midwest, and they want to head home for the holidays. Coupled with the huge parochial and partisan interests tied up in this legislation, there’s still momentum for a deal.

However, in case negotiators don’t reach a deal, Schumer filed cloture on the package just before midnight, setting up a procedural vote Friday. This is an insurance policy. There would be two cloture votes on this package and that would drag this process out until next Tuesday.

– John Bresnahan, Andrew Desiderio and Jake Sherman