US lawmakers announced late Monday an agreement in principle to avoid another government shutdown, with nearly $1.4 billion in money for construction of a wall on the border with Mexico, as President Donald Trump pushed his politically explosive crusade at a rally in the frontier city of El Paso.

That amount is far less than Trump has demanded. But if accepted, the deal would avert another chaotic standoff in which Trump has threatened to cut budgets from swaths of government this Friday.

Senator Richard Shelby, a key Republican negotiator, told reporters an agreement in principle had been reached between Republican and Democratic lawmakers.

Senior congressional aides told reporters the agreement included $1.375 billion in funding for a wall on the US-Mexico border — a key campaign promise of Trump, who had demanded $5.7 billion for his pet project.

The agreed figure would fund approximately 55 miles (89 kilometres), all to be located in the Rio Grande Valley area of south Texas.

The deal still faces White House approval.

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