House leaders are drafting a bill to postpone a potential government shutdown from midnight on Friday night to the end of the day on December 21.
Trump had been gearing up for a showdown as he sought billions for the construction of a wall along the U.S. -Mexico border.
U.S. border force agents reported that people were attempting to breach the fence separating the United States and Mexico, and they were forced to fire upon the crowd to stop people entering the USA illegally.
The stopgap measure would keep the government funded through December 21, two weeks after a Friday deadline when funding for a portion of the government, including the Department of Homeland Security, is set to expire.
The president and first lady made a trip to the U.S. Capitol Monday night to pay their respects to former President George H.W. Bush, who is lying in state in the Capitol Rotunda ahead of the state funeral Wednesday.
If Congress can't agree on border security or wall funding, one solution being considered by lawmakers is a measure to fund the Department of Homeland Security at current levels through the fiscal year.
Special Counsel Robert Mueller's investigation of Russia's meddling in the 2016 USA presidential election would continue, according to congressional aides.
Conservative Republicans say that with the Democrats taking over the House in January, now could be their last chance to secure border wall money for Mr. Trump. And even some Republicans balk at spending more than the $1.6 billion already provided.
Bomb attack kills three in Chabahar city of Iran: state media
Tehran often blames the United States, Saudi Arabia and Israel for backing groups to destabilize Iran, something its rivals deny. Terror attacks in Shiite Iran are rare, but militants have stepped up action in recent months.
On Monday, the president again attacked Democrats for their aversion to his wall, saying on Twitter that the government "would save Billions of Dollars if the Democrats would give us the votes to build the Wall".
Trump had been expected to meet Tuesday with the two top Democratic leaders on Capitol Hill - House Minority Leader Nancy Pelosi of California and Senate Minority Leader Charles E. Schumer of NY - to discuss how to resolve the remaining sticking points on appropriations, according to sources familiar with the talks.
The Financial Times reported Sunday that when the president spoke to reporters aboard Air Force One, he said he'd spoken with members of Congress and agreed he would extend government funding to avoid the shutdown that would have taken place Friday.
"If they [congressional leaders] come to talk about an extension because of President Bush's passing, I would absolutely consider it and probably give it", Trump said.
The country shouldn't have to endure a shutdown over "Trump's temper tantrum", Schumer said last week.
The House and Senate are expected to approve the new deadline at some point this week.
Besides the funding bill, Congress is considering a sweeping criminal justice package with sentencing reforms, a farm bill that's a top priority of Senate Majority Leader Mitch McConnell and other items before they adjourn for the year.
The Kentucky Republican told reporters over the weekend that it's up to Trump "to do a deal with the Democrats".
Senate Appropriations Chairman Richard C. Shelby said Monday that the new funding deadline has "raised the stakes" for negotiators working on the seven remaining spending bills.