That gives negotiators an extra two weeks to finalize legislation to fund roughly a dozen agencies, including critical areas like the State Department and the Departments of Homeland Security and Transportation.
Trump claimed in a tweet that "We would save Billions of Dollars if the Democrats would give us the votes to build the Wall".
Trump's plans to build a wall at the US-Mexico border were well publicised throughout his presidential election campaign.
But it is the fight over money for President Trump's planned wall on the USA border with Mexico that has been the main sticking point in the talks so far. He did not provide any evidence for the savings, but again threatened to close the "entire Southern Border if necessary".
House lawmakers filed a two-week stopgap spending bill Monday that would ensure that the government remains fully funded as the nation mourns former President George Bush this week. Chuck Schumer of NY and Rep. Nancy Pelosi of California, to the White House for a meeting Tuesday, but Democrats asked to postpone it because of Bush's funeral.
Instead of continuing the debate over money for a wall and border security, Republicans and Democrats spent the weekend negotiating the terms of an agreement that would delay the original Friday deadline.
A person familiar with the arrangements said the Bush team and Trump White House have been in close contact in planning an eventual funeral for the elder President Bush for months, marking a departure from what has been a long-running feud between President Trump and the Bush family.
NASA's OSIRIS-REx probe arrives at asteroid Bennu
Exactly one week after NASA landed a spacecraft on Mars , the Osiris-Rex craft's odometer showed 1.2bn miles (2bn km) travelled. This ensures that the solar radiation pressure remains constant, so engineers can make sure they continuously counteract it.
The change in tone is likely fueled Bush family assurances that the 41st President's funeral would be free of political tension and the anti-Trump sentiment that permeated McCain's funeral, the Washington Post reported.
Schumer and House Minority Leader Nancy Pelosi, D-Calif., were scheduled to meet with the president on Tuesday, but that sit down at the White House was postponed until next week.
The bill must pass the House and Senate, but leaders don't expect that to be a serious hurdle.
Senate Minority Leader Chuck Schumer (D-NY) said that they could support up to $1.6 billion in border security, not border wall funding, "that was included in a bipartisan Senate bill".
McConnell told reporters in Louisville on Saturday it's up to Trump "to do a deal with the Democrats".
"There is a possible shutdown if we don't get the wall", Trump said Thursday as he departed the White House for the G-20 Summit in Argentina. Federal funding for those expires at midnight on Friday.
But funding for other departments and agencies, which include the IRS, NASA and the Department of Homeland Security, would lapse if Congress doesn't act.