Senator Christopher Dodd is considering a proposal to change the funding of the financial reform bill to a funding source that would raise the Federal Deposit Insurance Corp premium ratio to 1.35 from 1.15, according to a memo being circulated on Tuesday.

Dodd, the chief architect of financial reform in the Senate, is circulating the possible offer as an alternative to a $19 billion tax on financial firms -- a proposal that has threatened its final passage.

(Reporting by Rachelle Younglai)