House Democratic leader Nancy Pelosi made a term limits deal on Wednesday with dissident House Democrats, including Rep. Bill Foster, D-Ill., locking in more than enough votes to reclaim the speakership on January 3.
Pelosi was asked about the potential for President Trump to hold his position on the border wall funding past January when Democrats take control of the House. "If we have to close down the country (over) border security, I actually like that in terms of an issue", he said.
On Tuesday, she told Democrats privately, "He said at the end of the meeting, he said, 'We can go two routes with this meeting: with a knife or a candy".
"We gave the president two options that would keep the government open", Ms Pelosi and Mr Schumer said in a statement after the meeting.
The president is seeking US$5 billion (£3.93 billion) for the border wall, a campaign promise that he has made into a central issue as Congress seeks to finalise spending before some federal government funding expires on December 21.
Trump has repeatedly threatened to shut down much of the government if Democrats do not back his plan.
"Yes, we do", Schumer said. "I said you probably don't know who I spoke most about on the campaign trail - what president I spoke most about".
On Tuesday, Pelosi joined Senate Democratic leader Chuck Schumer for a combative, 17-minute stand-off with Trump as the cameras rolled.
The only Texas Democrat in the House to voice opposition to Rep. Nancy Pelosi's bid for speaker is standing down.
Yesterday's meeting, the first in more than a year between Mr Trump and the Democratic leaders, was touted as his last chance to secure funding...
Pelosi made the remarks in a Democratic caucus committee meeting, which were recounted by an aide present who was not authorised to comment publicly. "He said, 'They're paying for the wall with the money we're gonna make over the newly revised USMCA, ' formerly known as NAFTA, whatever it is, formerly known as NAFTA".
"When you have walls, Chuck, it's effective, when you don't it's not", Mr Trump retorted.
It was unclear how Trump would try to use the US Department of Defense to build the wall, given that defence and military construction appropriation bills were signed into law for the 2019 fiscal year without any wall funding. Trump and Schumer jabbed at each other over the import of the midterm elections - and who would be blamed if a shutdown occurs.
"There is popular demand for the Congress to request the president's tax returns", she said, speaking to reporters.
Mrs Pelosi said there could be a "Trump shutdown" for the holidays.
Trump said earlier Tuesday that he could order the military to do the work if Congress refused to fund construction - although it was not clear that he had the authority.