2. SOUNDBITE (English) Mick Mulvaney, Director of Office of Management and Budget:
(Reporter: Shutting down the southern border would cost a billion dollars a day, is the president seriously willing to do that?")
"Yes, he absolutely is. All options are on the table. Listen it's the only way we can get the Democrats attention to him. Let me walk you through what's happened in the last couple of days. The vice president and I and Chuck Schumer met on Saturday. We gave them our most recent offer. We came down off of our five billion dollar offer. At that time we're at 1.3 billion dollars. Now they originally had been at 1.6, everybody knows that the Senate Appropriations Committee passed a bill funding the border wall at 1.6 billion dollars with I think 10 Democrats on the committee voting for that. So the Democrats went from 1.6 to 1.3. We were at five on Saturday afternoon. We sat down with Mr. Schumer and gave him a number below 5. I'm not going to tell you what it is, did I just say I wasn't going to tell you what the number was, and we were fully expecting them to come back and and continue those negotiations last night they called us and said that they weren't even going to counter that. Here's what I think is happening: This all comes down to Mrs. Pelosi speakership. I think left to his own devices that Chuck Schumer and the Senate Democrats probably would cut a deal, but they are protecting Mrs. Pelosi. She does not have the votes and if she cuts a deal with the President, of any sort, before her election on January 3rd she's at risk of losing her speakership. So we're in this for the long haul.
3. SOUNDBITE (English) Mick Mulvaney, Director of Office of Management and Budget:
"We are here and they know where to find us. We put the last offer on the table and in a negotiation anybody who's done this, you guys have done this for your own salaries, you don't make an offer, and they make another offer, to make another offer. We made an offer last Saturday night. They told us to they get back to us by the end of the week. They got back to us last night and said we're leaving. That's it. No more discussion. So the discussions have broken down. We do expect this to go on for a while. We do expect to manage at the Smithsonian for example has been open all week. It will be closed after New Year's. A shutdown certainly does look a little bit different under a Republican administration will not be weaponizing the shutdown in order to make it hard on people like we believe the previous administration does, but we could be this for the long haul."
The partial government shutdown will almost certainly be handed off to a divided government to solve in the new year.
As agreement eludes Washington in the waning days of the Republican monopoly on power, it sets up the first big confrontation between Trump and newly empowered Democrats.
Trump is sticking with his demand for money to build a border wall with Mexico and Democrats, who take control of the House on Jan. 3., are refusing to give him what he wants.
Trump raised the stakes on Friday, reissuing threats to shut the U.S.-Mexico border to pressure Congress to fund the wall and to cease aid to three Central American countries from which many migrants have fled.
Mick Mulvaney, the Director of Office of Management and Budget and Trump's incoming chief of staff, said Friday that Trump is "absolutely" willing to shut down the southern boarder.