Gov. Terry McAuliffe

RICHMOND, Va. (AP) _ Gov. Terry McAuliffe is proposing a two-year pilot of an expanded Medicaid program, a suggestion he hopes will persuade Republicans to end an impasse over the state’s budget.  McAuliffe announced Monday that the federal government said it would not penalize Virginia if it ran a two-year pilot program. McAuliffe said the approval allows the state to try expanding Medicaid eligibility to 400,000 residents with no risk.  House Republicans oppose Medicaid expansion. The federal government has promised to fund the bulk of the expansion.  The fight over Medicaid has led to a budget stalemate and a special session that is set to start later Monday.

(Associated Press contributed to this report.)