The US House speaker, Mike Johnson, told reporters on Friday that “we will not have a government shutdown” while revealing plans for an afternoon vote on a spending deal, though he acknowledged there is still “one more little detail to work out”.

House Republicans met early Friday afternoon to try to broker a deal before the government is set to shutdown at midnight. The negotiations come after, in a blow to Donald Trump, Republicans in Congress failed to pass a pared-down spending bill on Thursday – one day before a potential shutdown that could disrupt Christmas travel and deliver a blow to the US economy just a month before Trump returns to the White House.

By a vote of 174-235, the House of Representatives rejected the Trump-backed package, hastily assembled by Republican leaders after the president-elect and his billionaire ally and increasingly close political partner Elon Musk scuttled a prior bipartisan deal.

Carlos Giménez, a Republican representative, offered more clarity on the new strategy on Friday, telling reporters outside the GOP conference that Johnson will “try to go with a suspension” – referring to a procedural move to pass a spending bill that requires two-thirds of the House to pass, meaning it would need Democratic support.

On Friday, Karine Jean-Pierre, the White House press secretary, launched a blistering attack on Republicans for their handling of the budget crisis. “Republicans blew up this deal – they did – and they need to fix this, period,” she told reporters. “[Republicans need] to stop playing politics with a government shutdown, and … they’re doing the bidding of their billionaire friends, that’s what we’re seeing, at the expense of hardworking Americans.”

While Jean-Pierre didn’t name specific individuals, her comments appear to be referencing Musk and Vivek Ramaswamy, who had publicly opposed an earlier bipartisan spending deal that was ultimately abandoned at Trump’s urging.

“This is a mess that they created, and they need to fix this,” Jean-Pierre said.

House minority leader, Hakeem Jeffries, is reported to be holding private meetings with vulnerable Democrats from swing districts, while maintaining open communication lines with Republicans.

Trump earlier on Friday repeated his demand for the suspension – or even elimination – of the federal borrowing limit and insisted any shutdown should happen under Joe Biden’s watch rather than his own upcoming administration.

According to Punchbowl News, Republican leadership presented slides during the afternoon meeting outlining a plan to raise the debt limit by $1.5tn in the “first reconciliation package”, paired with a pledge to cut $2.5tn in “net mandatory spending”.

The leadership team also laid out two options for a continuing resolution to keep the government funded, including a suspension of rules for a continuing resolution (CR) lasting until March and a rule allowing votes on three separate measures: the CR, disaster relief and a farm aid package.

The rejection of the spending bill on Thursday night showed that Trump’s grip on the Republican party is not quite as iron-clad as usually thought. The president-elect had furiously urged the package to be passed, including threatening to primary any Republicans who opposed it. But a faction of Republican lawmakers on the right – outraged by lifting government borrowing limits – rebelled.

Critics described the breakdown as an early glimpse of the chaos to come when Trump returns to the White House on 20 January. Musk’s intervention via a volley of tweets on his social media platform X was mocked by Democrats as the work of “President Musk”.

Friday is lawmakers’ final day to approve a new federal budget before a government shutdown would begin at midnight.

Kamala Harris cancelled a planned trip to Los Angeles, with Washington on the verge of a shutdown.

Harris had been scheduled to travel to her home state late on Thursday, but instead will remain in the capital, the White House said, after Republicans backed away from a bipartisan compromise to fund the government.

Among the 38 Republicans who voted against the Trump-backed debt ceiling package were several members of the conservative, pro-Trump Freedom caucus. The group included prominent conservatives like Andy Biggs, Paul Gosar, Chip Roy and Scott Perry, who have historically been strong Trump allies but are drawing a line at lifting government borrowing limits.

Kat Cammack, a Republican congresswoman who voted against the bill, told reporters that “this was not an easy vote for constitutional conservatives”. She added: “We’re going to work through the night and figure out a plan.”

Meanwhile, JD Vance told reporters on Capitol Hill that Democrats voted against the legislation on Thursday to avoid a government shutdown “because they didn’t want to give the president negotiating leverage during the first year of his new term”.

The bill would have suspended the nation’s debt ceiling for two years, helping Trump avoid a major negotiation with Democrats early next year.

The incoming vice-president did not mention the 38 Republicans who voted against the bill, denying Johnson a victory as he has tried to appease Trump’s last-minute demands on the debt limit. Trump endorsed the bill shortly before the vote.

“They’ve asked for a shutdown,” Vance said of Democrats. “That’s exactly what they’re going to get.”

The Associated Press contributed to reporting