Responding to a question from 'Fox News Sunday' host Chris Wallace about the Obamacare-for-Border-Wall compromise he proposed to Democrats, Trump budget director Mick Mulvaney replied: "Actually, what I would say is they’re holding hostage national security. Again, something they supported in the recent past when President Obama was in the Senate. So we don’t understand why this is breaking down like this. We’re worried that this is sending a message that this is going to be the next four years. That Neil Gorsuch was not a one of thing, that the Democrats will oppose everything that this president wants to do, which is stunning to us, especially when we are offering them something they want in return."



"We are willing to talk about the things that we want and things that they want. That's how Washington is supposed to work and used to work on up until the recent past," he said.





WALLACE: President Trump has talked about a number of items that he would like to see in this government funding bill. Which are so important that he's willing to see the government shutdown if he doesn't get them?



MULVANEY: I don't think anybody is trying to get to a shutdown. Shutdown is not a desired end. It's not a tool. It's not something that we want to have.



We want our priorities funded and one of the biggest priorities during the campaign was border security, keeping Americans safe and part of that was a border wall.



And we don't understand why the Democrats are so wholeheartedly against it. They voted for it in 2006, then-Senator Obama voted for it. Senator Schumer voted for, Senator Clinton voted for it.



So, I don't understand why Democrats apply in politics just because Donald Trump is in office.



WALLACE: I want to ask you a direct question, sir.



MULVANEY: Sure.



WALLACE: Will he sign a government funding bill that does not include funding for the border wall?



MULVANEY: Yes, and I think you saw his answer in your lead in, which is, we don't know yet. We are asking for our priorities.



And, importantly, we are offering to give Democrats some of their priorities as well. They made it very clear that they want these cost-sharing reduction payments as part of Obamacare. We don't like those very much, but we have offered to open the discussions to give the Democrats something they want in order to get something we want.



WALLACE: OK. Well, let me pick up on that because on Friday, you did offer Democrats a trade, funding for the border wall in return for continuing subsidies, the subsidies that already exist, continuing subsidies to insurance companies to help pay for lower income people who get health insurance. Here you are.



(BEGIN VIDEO CLIP)



MULVANEY: We'd offer them $1 of CSR payments for $1 of wall payments. Right now, that's the offer we've given to our Democratic colleagues.



(END VIDEO CLIP)



WALLACE: Democrats say that is a nonstarter and what you are in effect doing with that trade is that you are holding hostage health insurance for millions of lower income Americans.



MULVANEY: Actually, what I would say is that they are holding hostage national security. Again, something they've supported in the recent past when President Obama was in the Senate. So, we don't understand why this is breaking down like this, and we are worried, Chris, that this is sending a message that this is going to be the next four years, that Neil Gorsuch was not just a one-off thing, the Democrats will oppose everything this president wants to do, which is stunning to us, especially when we are offering them something they want in return.



WALLACE: But some people wonder, Director, how much leverage do you have? I mean, if what you're saying is, give us what we want, and if you don't, we're going to cut off funding that would provide health insurance for millions of lower income Americans, are you -- are you willing to take that political hit?



MULVANEY: We are trying to get a border wall to protect millions of low income Americans against folks who aren't supposed to be here. So, it's a national security --



(CROSSTALK)



WALLACE: But are you willing to cut off the funding?



MULVANEY: We are willing to talk about the things that we want and things that they want. That's how Washington is supposed to work and used to work on up until the recent past.



WALLACE: Your agency has told federal departments as you have to do, the Office of Management and Budget has told the government to prepare for a shutdown. You have to get ready for it. What would stop, what services that all of us have would end if we have a shutdown next Saturday?



MULVANEY: It's hypothetical. Again, you're right. We have to have that phone call on Friday, it's the law, even if we believe that appropriations and spending will be passed next seven days.



But you've seen these things before, what they're called nonessential services would shut down. All the essential services would continue, Social Security checks would still go out, Medicare payments would still be funded.



WALLACE: But what --



MULVANEY: Government -- national defense would still take place. But, again, no one -- I don't think anybody foresees or expects or wants a shutdown next week.



WALLACE: But you are holding open -- I don't want to press it too hard, but you were holding up on the possibility, if you don't get funding for the border wall -- I mean, I don't understand.



MICK MULVANEY: Yes.



WALLACE: The president is saying, look, this is -- as you say, this is where we're going to set the marker for the next four years, can he backed down on the border wall given the fact that you have set this up?



MULVANEY: Sure. Let me put it to you this way, I'd like you and I met you a couple times, I'm not going to negotiate with you on national television on Sunday. We'll negotiate with the Democrats. And the negotiations are not finished yet.



We think we've given them a reasonable set of choices, things that they want in exchange for what we want. That's how it's supposed to work, and for some reason, we think this Democratic obstruction is not working.