Trump backs down on border wall funding

US President Donald Trump and lawmakers inched closer to a deal on Tuesday avoiding a government shutdown, as the President, eager to showcase a win marking his first 100 days, retreated from a demand to fund a border wall.

The President's close adviser, Kellyanne Conway, said funding for the wall would be left out of a budget measure that must pass by Friday, when the government is set to exhaust its current funding at midnight.

The White House is under the gun to craft a compromise that would keep the government running while not appearing to cave on Trump's demand that Congress fund a wall on the border with Mexico.

"Hopefully, we'll reach an agreement some time in the next couple of days," Senate Majority Leader Mitch McConnell said, but he did not rule out passing a short-term extension that gives lawmakers time to craft a final deal.

Building the wall, paid for by Mexico, was a key promise during Trump’s presidential campaign.

But Democrats had threatened to block the bill if money was earmarked for the wall, so its omission may now avert a government shutdown.

Funding is expected to cover broader border security measures, such as the use of drones or anti-tunnelling technology.

However, a deal remained far from certain. Among the sticking points is the fate of cost-sharing arrangements that help reduce health insurance costs for low-income Americans buying plans through the Affordable Care Act, the reform implemented by Trump's predecessor Barack Obama.