Conservative activist group FreedomWorks signaled Wednesday they will not oppose a GOP bill that would replace Obamacare with block grants and let states take control of the troubled healthcare law.

"Although this amendment fails to meet more than seven years of promises to repeal ObamaCare and does not truly represent an approach grounded in the principles of federalism, there is a path to win our support," FreedomWorks President Adam Brandon said in a statement.

Conservatives have softened their stance against the proposal, written by Sens. Lindsey Graham, R-S.C., and Bill Cassidy, R-La., because the bill appears to be the last, best chance for Republicans to undo Obamacare in some way.

Brandon and other conservative group leaders had been pushing for a full repeal of Obamacare, which Republicans promised for years on the campaign trail. But, the GOP-led majorities in the House and Senate have been unable to pass such a bill this year, and have only until the end of September to use a budget tool that will allow them to avert a Democratic filibuster of any repeal and replace plan.

Brandon said Graham-Cassidy should be a "step" toward repealing Obamacare and called on lawmakers to tweak Graham-Cassidy to make it harder for the executive branch to deny state Obamacare waivers and to ensure Congress does not perpetually renew Obamacare's expanded Medicaid funding.

Brandon said FreedomWorks is "encouraged" by legislation's provisions providing more flexibility to the states to waive Obamacare regulations, "that are driving up the cost of health insurance coverage."

Brandon was vague in characterizing the organization's view of the bill.

"For now, we don't support nor do we oppose Graham-Cassidy," he said.