Senators from both parties reached a deal to extend the Children's Health Insurance Program by five years and transition to a lower funding level.

Sens. Ron Wyden, D-Oregon, and Orrin Hatch, R-Utah, announced the deal late Tuesday. The program expires at the end of the month and legislative language is expected to be released in the coming days, according to a press release from the Senate Finance Committee, of which Hatch is chairman and Wyden is the ranking member.

The bill aims to eventually lower the funding for CHIP to a "traditional federal-state partnership and provide additional flexibility for states."

Obamacare added a 23 percent funding hike to the program when the healthcare law was approved back in 2009.

It remains unclear what the funding level would be reduced to or when the update would go into effect.

CHIP provides block grants to states to provide health insurance for low-income children to get insurance. The program, which was created by Hatch and since deceased Sen. Ted Kennedy, D-Mass., traditionally generates bipartisan support.

It was last reauthorized back in 2015.