The US Congress is racing the clock to avoid a federal government shutdown before a midnight deadline on Friday after a meeting between President Donald Trump and Democratic Senate leader Chuck Schumer failed to produce a deal.

Trump invited Schumer to the White House for talks as a stopgap bill to fund the federal government through February 16 appeared headed to defeat in the Senate, where Democratic votes are needed to pass it.

Trump said the meeting was "excellent" and that efforts were continuing. "Making progress - four week extension would be best," Trump said in a tweet.

Schumer said earlier that the meeting lasted about 90 minutes and that differences remained in the pursuit of a short-term spending bill to keep the government running.

Democrats are demanding that the stopgap bill include protections for hundreds of thousands of young undocumented immigrants but Republicans have so far refused.

"We discussed all of the major outstanding issues. We made some progress, but we still have a good number of disagreements. The discussions will continue," Schumer told reporters after the meeting, also attended by each man's chief of staff - John Kelly for Trump and Mike Lynch for Schumer.

The Republican-controlled House of Representatives approved the stopgap spending measure late on Thursday, but it has been sidetracked in the Senate by a dispute over immigration.

The House recessed on Friday for a week-long break, but members were warned they could be called back for votes.

White House budget director Mick Mulvaney said he was ratcheting up the likelihood of a government shutdown from 30 per cent to a 50-50 possibility.

The shutdown would begin on the first anniversary of Trump's inauguration as president, and put hundreds of thousands of "non-essential" federal workers on temporary unpaid leave.

"Essential" employees who deal with public safety and national security would keep working. There have only been three meaningful government shutdowns since 1995.
The showdown follows a months-long struggle in Congress to agree on government funding levels and the immigration issue. The federal government is operating on a third temporary funding measure since the new fiscal year began in October.

Democrats have demanded the bill include protections from deportation for 700,000 young undocumented immigrants. Those children, known as "Dreamers," were brought into the United States as children, largely from Mexico and Central America, and given temporary legal status under a program started by former President Barack Obama. Many have been educated in the United States and know no other country.

In September, Trump announced he was ending the program and giving Congress until March 5 to come up with a legislative replacement.