Acting White House chief of staff Mick Mulvaney Mick MulvaneyOn The Money: House panel pulls Powell into partisan battles | New York considers hiking taxes on the rich | Treasury: Trump's payroll tax deferral won't hurt Social Security Blockchain trade group names Mick Mulvaney to board Mick Mulvaney to start hedge fund MORE on Tuesday said he believes the White House and congressional Democrats will continue to work together on select subjects despite mounting tensions between President Trump Donald John TrumpSteele Dossier sub-source was subject of FBI counterintelligence probe Pelosi slams Trump executive order on pre-existing conditions: It 'isn't worth the paper it's signed on' Trump 'no longer angry' at Romney because of Supreme Court stance MORE and Speaker Nancy Pelosi Nancy PelosiPelosi slams Trump executive order on pre-existing conditions: It 'isn't worth the paper it's signed on' On The Money: Anxious Democrats push for vote on COVID-19 aid | Pelosi, Mnuchin ready to restart talks | Weekly jobless claims increase | Senate treads close to shutdown deadline Trump signs largely symbolic pre-existing conditions order amid lawsuit MORE (D-Calif.).

Mulvaney appeared at a fiscal policy event hosted by the Peter G. Peterson Foundation hours after Pelosi, who said in her session that she's "done" with Trump amid talk of his latest attacks against her.

"We’re not done with her, I doubt she’s done with us," Mulvaney said in response.

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"We’ll see how that holds up," he quipped. "Is anybody making book on that as to how long that lasts."

On infrastructure, a topic many thought would be ripe for bipartisan compromise, Mulvaney conceded that the prospects of a deal are all but dead after Trump walked out of a meeting with Democratic leadership last month.

Mulvaney blamed Pelosi for blowing up talks after she said a short time before the meeting that the president was engaged in a “cover up."

"The outcome didn’t surprise me," he said of the infrastructure breakdown in the wake of Pelosi's comments. "It shouldn’t surprise anyone."

But Mulvaney argued that Democrats are unlikely to pass a budget, which will require Congress and the White House to negotiate a spending deal. He said he "absolutely" believes there will be a government funding deal reached by the end of the year.

He also cited the administration's ongoing push to pass the United States-Mexico-Canada Agreement as an area of mutual interest.

Pelosi has signaled she won't bring the trade deal up for a vote until certain labor laws and environmental regulations are addressed.

— This report was updated at 1:54 p.m.