GOP leaders submitted the new offer Tuesday afternoon to appease Democrats, whose votes are needed to avert a shutdown of federal agencies, several House and Senate aides said.

Top Senate Democrat Chuck Schumer said Republican negotiators were following the lead of Trump, who signaled Monday evening that he would not insist on $1 billion worth of wall funding now as an addition to the $1 trillion-plus spending bill.

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. "But a 2,200-mile wall, I don't think there's a whole lot of support for it". The looming question is just how unyielding Democrats, emboldened by Trump's walk-back on the wall, are prepared to be on issues like Obamacare funding and other provisions they want to see included-or excluded-in the spending bill.

But eliminating the caps permanently would require a deal between Republicans and Democrats on tax and spending reform.

As for Trump himself, his description of his promised border wall has evolved since he first announced the plan during his campaign kick-off speech.

"I don't want to start talking about a short-term CR on a Tuesday". The Arizona senator said Tuesday that a better option might be fencing monitored by drones.

The Trump administration has reportedly dropped its plan to tax imports to the USA from certain countries one day ahead of an announcement on tax policy, according to The New York Times. "And we're pleased that the president has indicated that he is backing off from a wall".

"I think he realizes that it is unlikely to be part of the negotiation this time around", Sen.

With $5 billion slated for war fighting, that would leave $10 billion for more troops and the things Trump said he wanted to spend on. "It doesn't mean that he can't have some form of a wall".

"Now, whether 15 percent is the right figure or not, that's a matter to be determined", Hatch said.

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As usual when they are refusing to engage in even a tiny bit of compromise, liberals in Congress are playing the "government shutdown" card.

The president tweeted this morning: "Don't let the fake media tell you that I have changed my position on the WALL". Lamar Alexander said Tuesday. "We've now made progress on both of these fronts", House Democratic Leader Nancy Pelosi said.

The proposed wall with Mexico was one of Trump's central campaign pledges.

"No, no, no, no". "Poison pill riders are something that could really hurt the bill, and we don't want that to happen". "And if our president tells us it's creating impediments to our border, we should do it".

Politico reported on Wednesday that the White House agreed to continue to fund the CSR payments as it has been doing if Democrats would agree to move forward on a spending bill without the Obamacare spending. It will get built and help stop drugs, human trafficking etc.

So how does Trump climb down from his wall?

"It's Donald Trump's signature issue, it's what he held out as being important and it's what he will be judged on", Manning said of the border wall. In a meeting with Mexican lawmakers, Videgaray also reiterated that Mexico would not be paying for any border wall.

Senate Minority Leader Chuck Schumer, D-N.Y., said, "It's good for the country that President Trump is taking the wall off the table in these negotiations".

"We're going to continue - our priorities are clear going into FY17, the remainder of budgeting for that, and we'll continue to ask for more in FY18", the press secretary said.