A senior Trump administration official told reporters on a conference call that Democrats must accept physical barriers on the border as part of any deal.
With lawmakers like Meadows and prominent conservative commentators demanding that the president stick to his campaign promises, Trump would not budge on his wall. The next possibility for votes in the House and Senate is December 27, but Democrats have indicated the two sides are far from a deal.
"Instead of bringing certainty into people's lives, he's continuing the #TrumpShutdown just to please right-wing radio and TV hosts", Schumer tweeted, referring to Rush Limbaugh and Ann Coulter, among others, who ripped him for being unable to get funding for his long-promised border wall.
Before a three-day lapse in January, caused by Democrats' insistence that any budget measure come with protections for young immigrants known as "dreamers", the most recent significant shutdown was a 16-day partial closure of the government in 2013.
Mulvaney said Sunday morning that the White House had moved down from its demand for $5 billion and hoped Democrats would move up from their offer for $1.3 billion in border security funding.
Mulvaney also acknowledged during his interview that Trump's personality has made it more hard to navigate through the government shutdown.
But the Democrats, along with some Republicans, said they couldn't support the $5 billion sought by Trump because they said a wall was an ineffective and inefficient method of securing the border.
Employees at those agencies deemed essential will continue working without pay, including many Transportation Security Administration workers dealing with the influx of holiday travellers.
Trump canceled his holiday vacation to Florida due to the budget wrangling, and his wife Melania, who had already traveled to their Mar-a-Lago resort, was returning to Washington to spend the holidays with her husband.
"It's Christmas Eve and President Trump is plunging the country into chaos".
Indeed, Democrats believe they have a stronger hand in the faceoff against a president who said he would be "proud" to force a shutdown - rarely popular among the broader public - in the name of tighter border security. Then-President Bill Clinton agreed with Republicans about the end but not with the means - they wanted to cut social programs and repeal Mr. Clinton's 1993 tax law.
The sun rises behind the White House in Washington, Saturday, Dec. 22, 2018. Progress toward funding the wall has been slow and Trump sees the final days of the GOP's complete control of Congress as his last chance to force the issue.
There was a flurry of activity Friday night and Saturday, including a proposal to end the impasse from the White House to Senate Minority Leader Chuck Schumer, D-N.Y. Chris Van Hollen and Ben Cardin, who represent Maryland, where many DC-area federal employees live. Legislation ensuring that workers receive back pay was expected to clear Congress.
But while trying to pin the blame on Democrats, Mulvaney, speaking on "Fox News Sunday", acknowledged that Trump's insistence on the wall played a role.