The US House of Representatives introduced a $39.7 billion DHS bill in January. The document included a Republican-sponsored amendment to withhold funding for any of Obama's executive actions to protect five million undocumented immigrants from deportation. The Democrats have vehemently opposed this insertion.
On Monday, the US Senate failed for the fourth time to meet the 60-vote threshold to consider the funding bill.
There is still hope for the 240,000 DHS employees, as later on Monday US Senate Republican leader Mitch McConnell announced a decision to table a separate bill later in the week that would block funding for the implementation of Obama's immigration reform.
Analysts, however, are unsure if McConnell's move will get the support of his fellow Republicans.
"In hallway interviews, one senator after another confesses they have no idea how the DHS funding dilemma will end. McConnell Magic work begins now," Jeff Zeleny, ABC News Senior correspondent, said on Twitter Monday.
Also on Monday, White House Press Secretary Josh Earnest said Obama is ready to discuss ways to improve immigration with Congress as long as it helps ensure fundings for the DHS.
"It is our view that the best policy outcome is the policy outcome that fully funds the Department of Homeland security for a full year," Earnest said.
"A shutdown of the DHS would have serious consequences and amount to a serious disruption in our ability to protect the homeland," Homeland Security Secretary Jeh Johnson said at a press conference on Monday, as quoted on the department's website.
According to Johnson, some 75-80 percent of the Department's employees will have to work unpaid and up to 30,000 people are set to be granted leave of absence if the lawmakers fail to come up with an agreement.
The last time government in the US was in a shutdown due to Congress' inability to pass a funding bill from October 1 to October 16, 2013 when the Affordable Care Act, also known as Obamacare, was likewise held up by Republicans.
During the shutdown some 800,000 federal employees were furloughed and another 1,3 million had to work without pay.