Top Trump aide: Shutdown may go into new year

WASHINGTON (Reuters) - U.S. President Donald Trump's budget director and chief of staff on Sunday said the partial U.S. government shutdown could continue to January 3, when the new Congress convenes and Democrats take over the House of Representatives.

"It's very possible this shutdown will go beyond the 28th and into the new Congress," Mick Mulvaney said on Fox News Sunday.

"I don't think things are going to move very quickly here for the next few days" because of the Christmas holiday, added Mulvaney, who serves as director of the Office of Management and Budget and was named acting White House chief of staff 10 days ago.

The U.S. Senate adjourned on Saturday unable to break an impasse over Trump's demand for more funds for a wall on the border with Mexico that Democrats are unwilling to accept.

Mulvaney said the White House made a "counteroffer" to Democrats on funding for border security that fell between the Democratic offer of $1.3 billion and Trump's demand for $5 billion.

As part of those talks on Saturday, Vice President Mike Pence offered to drop the demand for $5 billion for a border wall, substituting instead $2.1 billion, ABC News reported citing unnamed sources.

Mulvaney sought to shift blame for the partial shutdown to Nancy Pelosi, the Democratic nominee for speaker of the U.S. House of Representatives, saying she might hold up negotiations to ensure she secures the position.

"I think she's in that unfortunate position of being beholden to her left wing to where she cannot be seen as agreeing with the president on anything until after she is speaker," Mulvaney said. "If that's the case, again, there's a chance we go into the next Congress."  

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White House budget director Mick Mulvaney
WASHINGTON, DC - SEPTEMBER 08: White House Budget Director Mick Mulvaney speaks to members of the media after a House Republican Conference meeting September 8, 2017 at the Capitol in Washington, DC. Mulvaney was on the Hill to push for the Trump Administration's Hurricane Harvey relief and debt limit package. (Photo by Alex Wong/Getty Images)
Mick Mulvaney, director of the Office of Management and Budget (OMB), holds up what he described as U.S. President Barack Obama regulations during a White House press briefing in Washington, D.C., U.S., on Thursday, July 20, 2017. Mulvaney has called Trump's tax-cutting approach to the economy MAGAnomics, a spin on Trump's campaign slogan, 'Make America Great Again' and has repeatedly attacked the Congressional Budget Office (CBO) for its estimates on the impact of Republicans' plans to repeal and replace Obamacare. Photographer: Andrew Harrer/Bloomberg via Getty Images
Mick Mulvaney, Director of the Office of Management and Budget, speaks about 'MAGAnomics' during the daily press briefing in the Brady Press Briefing Room at the White House in Washington, DC, July 20, 2017. / AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
WASHINGTON, DC - JUNE 21: OMB Director Mick Mulvaney testifies during a Financial Services and General Government Subcommittee hearing on the budget for the Office of Management and Budget on Capitol Hill on June 21, 2017 in Washington, DC. (Photo by Astrid Riecken/Getty Images)
WASHINGTON, DC - Budget Director for President Donald Trump, Mick Mulvaney explains and defends the administration's 2018 budget to the House Budget Committee on Capitol Hill in Washington, DC Wednesday May 24, 2017. (Photo by Melina Mara/The Washington Post via Getty Images)
UNITED STATES - MAY 24: OMB Director Mick Mulvaney testifies before a House Budget Committee hearing in Longworth Building titled 'The President's FY2018 Budget' on May 24, 2017. (Photo By Tom Williams/CQ Roll Call)
Mick Mulvaney, director of the U.S. Office of Management and Budget (OMB), listens during a House Budget Committee hearing on U.S. President Donald Trump's fiscal 2018 budget proposal in Washington, D.C., U.S., on Wednesday, May 24, 2017. Trump would dramatically reduce the U.S. government's role in society with $3.6 trillion in spending cuts over the next 10 years in a budget plan that shrinks the safety net for the poor, recent college graduates and farmers. Photographer: Andrew Harrer/Bloomberg via Getty Images
WASHINGTON, DC - MAY 23: Office of Management and Budget Director Mick Mulvaney holds a news conference to discuss the Trump Administration's proposed FY2017 federal budget in the Brady Press Briefing Room at the White House May 23, 2017 in Washington, DC. Calling it a 'New Foundation for American Greatness,' the $4.1 trillion budget for would cut programs for the poor, including health care, food stamps, student loans and disability payments while offering big tax cuts for the wealthy. (Photo by Chip Somodevilla/Getty Images)
Mick Mulvaney, director of the U.S. Office of Management and Budget, center, holds a volume of the fiscal year 2018 budget while speaking with Davita Vance-Cooks, director of the Government Publishing Office (GPO), left, during a tour of the GPO production facility in Washington, D.C., U.S., on Friday, May 19, 2017. President�Donald Trump�will send to Congress on Tuesday a proposal for balancing the federal budget within 10 years through deep cuts to discretionary and safety net spending, according to a U.S. official. Photographer: T.J. Kirkpatrick/Bloomberg via Getty Images
WASHINGTON, DC - MAY 02: White House Press Secretary Sean Spicer (R) walks into the briefing room with OMB Director Mick Mulvaney (L) and Secretary of Homeland Security John Kelly (C), to brief the media on President Trump's budget, at the White House (Photo by Mark Wilson/Getty Images)
Mick Mulvaney, director of the Office of Management and Budget (OMB), right, speaks as Gray Davis, former governor of California, listens during the Leaders In Global Healthcare and Technology (LIGHT) conference at Stanford University in Stanford, California, U.S., on Thursday, May 11, 2017. The LIGHT conference gathers leaders from a broad cross-section of executives and top policy makers in the health-care field to discuss the latest developments, challenges and opportunities shaping the healthcare industry. Photographer: David Paul Morris/Bloomberg via Getty Images
WASHINGTON, DC - MARCH 16: Office of Management and Budget Director Mick Mulvaney arrives for a briefing in the Brady Press Briefing Room at the White House March 16, 2017 in Washington, DC. Mulvaney took questions about President Donald Trump's federal budget blueprint which was released Thursday. (Photo by Chip Somodevilla/Getty Images)
WASHINGTON, DC - MARCH 13: U.S. Health and Human Services Secretary Tom Price (L) and Office of Management and Budget Director Mick Mulvaney talk to reporters following the release of the Congressional Budget Office report on the proposed American Health Care Act outside the White House West Wing March 13, 2017 in Washington, DC. Price said 'We disagree strenuously' with the findings of the CBO report about the Republican's attempt to repeal and replace the Affordable Care Act, or Obamacare. (Photo by Chip Somodevilla/Getty Images)
US Vice President Mike Pence (R) delivers remarks before swearing in Mick Mulvaney (L) as Director of the Office of Management and Budget in Washington, DC, on February 16, 2017. / AFP / NICHOLAS KAMM (Photo credit should read NICHOLAS KAMM/AFP/Getty Images)
WASHINGTON, DC - FEBRUARY 16: U.S. Vice President Mike Pence (C) Mick Mulvaney (L), swears as new Office of Management and Budget Director, as his wife Pam Mulvaney holds a bible during a ceremony in the Eisenhower Executive Office Building on February 16, 2017 in Washington, DC. (Photo by Mark Wilson/Getty Images)
UNITED STATES - NOVEMBER 4: Reps. Mick Mulvaney, R-S.C., left, and Randy Hultgren, R-Ill., attend a House Financial Services Committee hearing in Rayburn Building titled Semi-Annual Testimony on the Federal Reserves Supervision and Regulation of the Financial System,' November 4, 2015. Federal Reserve Chairwoman Janet Yellen testified. (Photo By Tom Williams/CQ Roll Call)
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Pelosi spokesman Drew Hammill disputed that account, saying in a statement: "As Mr. Mulvaney well knows, House Democrats are united in their opposition to the President's immoral, expensive and ineffective wall."

The White House should "stop the posturing and start serious bipartisan talks," Hammill said.

Financing for about a quarter of federal government programs - including the departments of Homeland Security, Justice and Agriculture - expired at midnight on Friday. More than 400,000 "essential" employees in those agencies will work without pay until the dispute is resolved. Another 380,000 will be "furloughed", meaning they are put on temporary leave.

Law enforcement efforts, border patrols, mail delivery and airport operations will keep running.

Building a wall to keep migrants from entering the United States illegally was a central plank of Trump's presidential campaign, but Democrats are vehemently opposed and have rejected his funding request.

Trump reiterated his push for border security on Sunday, saying on Twitter that "the only way" to stop drugs, gangs, and human trafficking at the border was with a wall or barrier.

"Drones and all of the rest are wonderful and lots of fun, but it is only a good old fashioned Wall that works!," the president said in the tweet.

Earlier in the week, leaders in both the Senate and House of Representatives thought they had reached a deal that Trump would sign that contained less money for border security, only to watch the president, under pressure from conservatives, re-assert his demand for $5 billion at the last minute.

Senator David Perdue, a Republican from Georgia on the Senate Banking Committee, said on Fox News' "Sunday Morning Futures" that he thought a deal this week was possible.

"I spoke to the President last night, he wants that," Purdue said, adding "I'm hopeful that cooler heads will prevail and we'll get to some number between $1.6 (billion) and $5 billion on that."

(Reporting by Jan Wolfe and Lesley Wroughton; Editing by Mary Milliken and Daniel Wallis)

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