WASHINGTON—The top House Republican said he would support adding money for hospitals to funding for a popular small-business aid program, pointing the way to a potential breakthrough in stalled talks with Democrats on the current round of stimulus spending.

In an interview, House Minority Leader Kevin McCarthy (R., Calif.) said he would pair hospital funding with an additional $250 billion for the Paycheck Protection Program, or PPP, a small-business loan program that exhausted its initial $350 billion allocation money on…

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