The president insisted the military can build it if Democrats will not vote for the funding.
The prospect for a quick compromise dissolved Tuesday in a testy, finger-pointing White House meeting between Trump, Senate Minority Leader Chuck Schumer, a New York Democrat, and House Minority Leader Nancy Pelosi, a California Democrat.
President Donald Trump said on Tuesday that U.S. authorities had "caught 10 terrorists", citing it as a reason for why the United States should build a wall on its Mexican border, but four government sources said there was no recent evidence of terrorism suspects being caught along the border.
Mr Schumer said: "You say, "my way or we'll shut down the government".
"If we don't get what we want ..."
Schumer, D-N.Y., said Trump threw a "temper tantrum" after Tuesday's televised confrontation, saying he and Pelosi "spoke truth to power" by contradicting Trump's "blatant falsehoods" about the wall.
In this December 7, 2018 photo, President Donald Trump speaks the 2018 Project Safe Neighborhoods National Conference in Kansas City, Mo.
"When the president brags he has won North Dakota and IN, he's IN real trouble", retorted Mr Schumer with a smile. "But it could be a lot easier if we had real border security", Trump said at one point, returning to his midterm campaign-trail rhetoric.
Trump also threatened that if Democrats don't provide enough votes to build the wall, "the Military will build the remaining sections". "Whatever "deal" they come to, you can count on one thing", the libertarian-leaning Republican tweeted today.
But anyway, it was, you know, he said at the end of the meeting, he said, 'We can go two routes with this meeting: "with a knife or a candy.' I said, 'Exactly'". The Democrats said they had given Trump two options to keep government open and the responsibility lay with him and Republicans who control Congress.
Before lawmakers adjourn for the year they also may consider a bipartisan criminal justice reform bill, a bill to protect special counsel Robert Mueller and a plan to overhaul the system for handling sexual harassment complaints on Capitol Hill. She challenged him to put border wall funding to a vote in the House.
Prior to the meeting the president took to Twitter to warn that the US military would build the border wall if Democrats do not authorize adequate funding for it. "Senate Republicans are working with the president and his homeland security team on a $5.02 billion targeted funding to boost security measures in specific places where DHS determines it is most needed". In fact, some barrier renovation has happened, but little wall construction has been completed under Trump. That's the issue. The depressing thing, after watching the last two years, is I can see that Trump has all the cards.
The US$1.3 billion would extend current funding levels contained in the spending bill for the Homeland Security Department - which Democrats want to maintain at existing levels if no new deal can be reached.
As for the state of border security, US arrests on the Mexican border jumped 78 percent in November from a year earlier to the highest level in Trump's presidency.
Senate Majority Leader Mitch McConnell says he is hoping for a "smooth ending" to the dispute over government funding that avoids a partial shutdown.
While Smith agreed that border security is important, he argued that the main challenge facing civil authorities is from asylum seekers, not illegal immigrants.
House Majority Whip Steve Scalise, R-La., said Democrats were the ones playing politics.
House Democratic leader Nancy Pelosi is unloading on President Donald Trump after their Oval Office confrontation over government funding. They want Open Borders for anyone to come in. "They'll lose that argument with the American people".