Trump has previously threatened to shut down the border, but took no action to do so following those threats. He also previously threatened to cut aid to countries that assist, or do nothing to stop, the caravans. But earlier this month, the U.S. pledged a total of $10.6 billion in aid and investment for Central America and southern Mexico — as part of a push to promote better security and job opportunities so that Central Americans and Mexicans do not have to emigrate to the U.S.


A cut-off of trade relations with Mexico could also risk a new agreement that DHS Secretary Kirstjen Nielsen announced this month that calls for immigrants claiming asylum in the U.S. to be returned to Mexico as their cases are processed.

Mick Mulvaney, Trump’s incoming acting chief of staff, claimed Friday on “Fox & Friends” that it appeared Senate Democratic Leader Chuck Schumer is interested in a deal but Speaker-designate Nancy Pelosi is preventing it. He alleged Democrats are not dealing because Pelosi is waiting until she secures the speakership.

“We don’t think they will [negotiate] until after the new Congress is sworn in,” he said.

But Pelosi has denied claims they haven’t provided a counteroffer.

“Democrats have offered Republicans three options to re-open government that all include funding for strong, sensible, and effective border security – but not the President’s immoral, ineffective and expensive wall,” said Drew Hammill, Pelosi’s deputy chief of staff. “With the House Majority, Democrats will act swiftly to end the Trump Shutdown, and will fight for a strategic, robust national security policy, including strong and smart border security, and strong support for our servicemembers and veterans.”

Fox News’ Chad Pergram and The Associated Press contributed to this report.