The Republicans added a sweetener in the form of a six-year extension to a health insurance programme for children in lower income families.
The current government funding expired on Friday midnight as the Senate failed to advance a stopgap spending bill, which had passed the House of Representatives and would fund the government through February 16.
Senators voted to move forward on legislation that would reopen the federal government until February 8, ending a three-day standoff between Democrats and President Donald Trump's Republicans over immigration and border security.
Then as Monday began, Trump goaded Democrats from the sidelines, accusing them of shutting down the government to win concessions on immigration, in service of "their far left base". "The Dems just want illegal immigrants to pour into our nation unchecked", Trump tweeted.
Huddled negotiations by Senate majority leader Mitch McConnell and Senate Democratic leader Chuck Schumer in the last minutes before midnight were unsuccessful, and the us government technically ran out of money at midnight.
White House press secretary Sarah Sanders said Trump had spoken during the day with McConnell and Senate Majority Whip John Cornyn. However, Schumer said he and the Senate's leading Republican Mitch McConnell had "come to an arrangement" and there was now a "real pathway" to a vote on the immigration bill.
Democrats had insisted that any bill to renew government funding also contain permanent protections for approximately 700,000 young, undocumented immigrants who were brought illegally into the United States as children.
Mr McConnell said Mr Schumer "took the extraordinary step" of preventing the legislation from passing and thus "plunging the country into this totally avoidable mess".
The deal to break through the Senate stalemate over immigration and border security that shut down the government is a bare-bones accord.
McConnell said negotiations on all those issues would start back up once the government was reopened.
This could include visa processing and passport applications as well as national parks and monuments. "When they reopen the government, we will continue the discussions".