Talks to avert a U.S. government shutdown have intensified in Washington D.C., with a deal reportedly edging closer - amid political drama following the fatal shooting of a nurse by federal immigration agents.

Prompted by the death of 37-year-old Alex Pretti in Minneapolis, Democrats are pushing to remove funding for the Department of Homeland Security (DHS) from a $1.2 trillion spending bill unless additional oversight is added.

U.S. media reports that the White House and Senate Democratic leadership are nearing an agreement which would meet Democratic demands to introduce new restrictions on federal immigration agents.

That would mean five of the six spending bills could be passed before the Friday deadline, while the DHS one would get a short-term extension to allow more discussion on the proposed new restrictions, like around the use of masks by agents.

If no deal is struck, the second shutdown within months will begin at one minute after midnight on Friday, January 30.

The spending bill has already passed in the House of Representatives but needs 60 Senate votes to advance.

Among the changes Democrats are seeking are requirements that federal agents obtain warrants before making arrests and clearer rules governing their identification, according to U.S. media reports.

Earlier this week, Senate Minority Leader Chuck Schumer stated his firm disapproval for funding Immigration and Customs Enforcement (ICE) until it is overhauled, which reflects the overwhelming sentiment among Senate Democrats.

Republican Senate Majority Leader John Thune has mentioned that 'productive' negotiations are ongoing, and the outcome will determine the scope of agency operations and potential impact on federal employees in the event of a shutdown.