The Iowa Senate has approved a deal to accept federal funding to provide health care coverage to low-income residents.

The deal was included in the $1.7 billion state Health and Human Services budget, which includes funding for the departments of Public Health and Human Services. Senate lawmakers voted 26-24 in favor of the budget Wednesday night.

The plan now moves to the House.

The health agreement would cover an estimated 150,000 Iowans. Those with incomes up to 100 percent of the poverty line would go on a state-run health plan.

People with incomes from 101 to 138 percent of poverty would get private health plans on the new health care exchanges. Those premiums would be paid for with the federal dollars. Any deal would need federal approval.