Formerly incarcerated people won't qualify for funds under a new $2 billion framework for the creation of a fund meant to benefit people not covered by federal pandemic unemployment aid, two sources familiar with the discussions said.

The creation of the excluded worker fund, which is set to benefit undocumented immigrants who do not qualify for federal aid, has spilled over into a public fight between legislative Democrats in Albany.

The development was first reported on Monday night by The New York Post.

Whether the latest proposal for the fund can break the logjam in Albany over a broader state budget agreement is yet to be determined. Democrats who represent swing districts in the suburbs and upstate counties have been hesitant to embrace similar measures in the past to benefit undocumented New Yorkers as Republicans have been eager to seize on them as election year issues.

Advocates have been pressing lawmakers to pass a $3.5 billion version of the fund, and in recent days have criticized Assembly Democrats who have not been supportive.

Democrats in the state Assembly and state Senate huddled in closed-door meetings on Monday evening to iron out their differences with the remaining issues.

That led to an unusually public spat between Assemblyman Tom Abinanti, one of the lawmakers in opposition, and Assemblywoman Amanda Septimo.

In addition to the fund, lawmakers are also trying to reach a compromise to legalize mobile sports betting in the state.