Democratic congressional leaders have cancelled a meeting with President Donald Trump after he attacked them on Twitter.
The Republican president said he did not think he could reach a deal with Nancy Pelosi and Chuck Schumer on funding the government.
The Democrats said they would negotiate with Republican lawmakers instead.
Averting a federal shutdown is just one of this month’s big challenges for Republicans, who control Capitol Hill.
The party’s lawmakers are also under pressure to pass a far-reaching tax plan that they can send to the president’s desk by the end of the year.
Mr Trump is making a rare visit to Congress on Tuesday to discuss a year-end spending package to fund the government through to next September.
Democrats have suggested negotiations could hinge on saving an Obama-era programme that allowed undocumented immigrants who entered the US as children to stay.
Mr Trump tweeted on Tuesday morning: “Meeting with ‘Chuck and Nancy’ today about keeping government open and working.
“Problem is they want illegal immigrants flooding into our Country unchecked, are weak on Crime and want to substantially RAISE Taxes. I don’t see a deal!”
Ms Pelosi and Mr Schumer later issued a joint statement abruptly calling off the meeting.
“Given that the president doesn’t see a deal between Democrats and the White House,” they said, “we believe the best path forward is to continue negotiating with our Republican counterparts instead.”