'Eric made very clear that our position is the Ryan budget,' said a Cantor spokesman. Cantor: Still with Ryan on Medicare

House Majority Leader Eric Cantor (R-Va.) is denying a published account claiming Republicans are preparing to ditch Rep. Paul Ryan’s ambitious plan to revamp Medicare in pursuit of a debt ceiling compromise with Democrats — but both sides have begun seeking common ground on oil subsidies, sources say.

The Washington Post reported late Wednesday that Cantor, highly influential with the party’s tea party wing, planned to abandon Rep. Paul Ryan’s controversial Medicare plan, but a spokesman for Cantor said his boss was quoted out of context — and the GOP is keeping a hard line.


“Eric made very clear that our position is the Ryan budget which — as you know — assumes a debt limit increase and includes Medicare, Medicaid and $715 billion in mandatory savings,” Cantor spokesman Brad Dayspring told POLITICO. “Whether the Democrats will agree to the proposals we've outlined is yet to be seen, but that is our starting point so we don't continue to kick the can down the road and make real cuts and real reforms this year.”

That left Democratic negotiators, bracing for the start of bipartisan talks on Friday, befuddled.

The GOP and Democrats have agreed to a “target” of slashing oil subsidies but Democratic aides say they have seen no indication Cantor is dropping the Medicare restructuring.

Glenn Thrush contributed to this report.

This article first appeared on POLITICO Pro at 11:00 p.m. on May 4, 2011.