Transcript for Shutdown talks broken between Trump, Dem leaders: Sources

We want to turn to Washington where the government shutdown is about to extend into a new year and no end in sight. Some 420,000 government employees worked without pay last week while 380,000 workers are furloughed. That means they're out of work without pay. Our white house correspondent Tara Palmeri has the latest, Tara, good morning to you. Reporter: Good morning, Dan. We still haven't seen or heard from the president since last week but he's been busy blasting Democrats on Twitter and the white house says there's still no meeting on the books for him to meet with democratic leaders before they take control of the house next week to end the stalemate. With the government shutdown now entering its second week sources tell ABC news president trump is calling political allies and conservative pundits to reassure them he will not back down on his demand for a border wall. We need a wall. Reporter: The president Sunday comparing his wall to the fence around the Obamas' private home tweeting, president and Mrs. Obama built/has a ten-foot wall arod their D.C. Nsion/coound.he same thing and the president's outgoing chief of staff John Kelly saying that the administration has long abandoned the idea O a solid be hest it's not wall. The presidentll say wall oftentimesrankly he'll say barrier or fencing. Now he's tended toward steel slats. The president blaming Democrats for a tragedy at the southern border claiming without any proof it's their fault two migrant children died in U.S. Custody this month. In his first statement on their deaths, the president tweeting, any deaths of children or others at the border are strictly the fault of the Democrats. The president claiming the two children wouldn't have died if he was granted money for a wall. Democrats showing no sign of compromise on their current offer of roughly $1.3 billion for border security. We are willing to pay $2.5 billion or $5 billion in wasting taxpayer dollars on a ransom note because Donald Trump decided that he was going to shut down the government. Reporter: Before lunch at the white house Sunday the president's ally, senator Lindsey graham saying don't expect the president to back down. President trump is not going to walk away from the fight without border security funding, money for the wall for lack of a better way to say it. Reporter: Trump and chuck Schumer and Nancy Pelosi haven't spoken to each other in 20 days. Now sources say the president feels comfortable about where he stands politically in this shutdown fight. He sees it as a political loser for Democrats as they try to set the agenda in the new congress. Dan. Tara, let me ask you about some news on another subject. Lindsey graham coming out and speaking to the press after that lunch with the president. The president has taken a lot of heat from senator graham and others on both sides of the aisle for his decision recently to pull American troops out of Syria. Now senator graham says there's a pause? Reporter: That's right, Dan. Senator graham came to the white house yesterday to try to convince the president against pulling the remaining 2,000 troops out of Syria and he says that the president agreed to slow down the withdrawal process but U.S. Officials warn us that no final decisions have been made. In fact, they're actually drafting a plan right now and they say that withdrawal could happen over the next few months. Dan. Tara Palmeri at the white house, thank you very much. Let's turn to our political analyst, Matthew dowd, who for once joins us in person. Such a pleasure. Not for once but unusually. Just trying to make you feel guilty. Happy new year's to you. And to you my friend. This week big news. The Democrats are going to take over the house. What does that mean for this ongoing shutdown? Is that likely to change the game? It puts the Democrats in a much more powerful position now that speaker Pelosi will be speaker in this and have a huge advantage in the house. I don't think that changes the dynamics. Both sides dug in and the president says he'll keep the government shutdown until he gets what he wants but doesn't seem like speaker Pelosi or minority leader Schumer are going to move at all. So what has to happen for them to reach a deal to bring this shutdown to an end? The president has to move. I mean, interestingly, when you look back at past presidents who have lost badly in midterm, president Obama, president Clinton and president Reagan, all of them understood their base wasn't enough and they decided to go towards consensus and go towards compromise. The president has done the exact opposite of that after a badly lost midterm. He has to move towards consensus and move towards compromise and understand that he doesn't represent today the majority of the country. And, Matt, as we mentioned the new year brings a new congress and new reality for president trump. What does that mean for the rest of his first term? I think it makes it difficult and I don't think the president is prepared both emotionally and administratively for what he's about to deal with. Having the Democrats in charge of the house is going to change dynamics completely and they'll put in charge of all committees, investigations, they're going to have subpoena power and the run of the house actually and I think the president is not prepared for what that means and what he is about to face. The other dynamic is we've got all these Democrats who are about to announce they're running for president. We could see upwards of two dozen so how does that play out over the course of the year. Well, that's going to begin I think the democratic national committee has already set debates to start in June so six months from now will be the first -- How will they put them on the same stage. They'll have two separate stages. The Democrats running, it's basically four lanes and the Democrats have to compete in one of those lanes which is an ideological lane which would be more Progressive, the experienced lane, reliable which would be more like Biden, the fresh face lane like Beto and the time's up lane and pay attention to the women candidates. One of them whether Elizabeth Warren or somebody else will jump up to the top tier. It won't be just Beto, Bernie and Biden. Looking forward to a new year. Overseas to a deadly terror attack on a shopping center if

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