Trump has oftened changed his mind or threatened to veto bills at the last minute, so a shutdown is still possible.
Trump continued to assert over Twitter that the wall would be built, insisting Mexico would pay for it via the renegotiated North America trade deal and that the military would build it.
The legality of such an approach is in question, and Schumer insisted Democrats would not let it happen. It's also unclear how the trade deal would mean Mexico is paying for the wall.
McConnell blamed the outcome on Democrats after they turned down a GOP offer yesterday that would have provided US$1.6 billion for border barriers and another US$1 billion for Trump to spend on other immigration priorities.
"Faced with this intransigence - with Democrats' failure to take our borders seriously - Republicans will continue to fulfill our duty to govern," McConnell said. "That's why we will soon take up a simple measure that will continue government funding into February: So we can continue this vital debate after the new Congress has convened."
Schumer spoke on the floor shortly thereafter, saying: "I'm glad the leader thinks the government should not shut down over the President's demands for a wall, and Democrats will support this CR." A CR is a "continuing resolution" extending government funding.
The Senate could pass the measure as soon as today and the House by tomorrow, marking a humbling end to the 115th Congress and two years of unified GOP control of Washington. About 25 per cent of government funding would run out on Saturday absent action by Congress and Trump.
"One way or the other, we will win on the Wall!" Trump said in a morning tweet. In another, he sought to make the case that because of "large scale criminal and drug inflow" the military would be justified in building a border wall.
Just last week, Trump told Democratic congressional leaders that he'd be "proud" to shut down the government to get his wall money. But in recent days, Democrats have held firm against his demand, and Republicans have appeared increasingly eager to avoid a partial shutdown heading into the Christmas holiday.