"We will not fund states that allow anarchy," she told reporters.
The federal government remains closed amid a bitter impasse on Capitol Hill over competing congressional spending bills.
President Donald Trump and Republicans have cast blame for the shutdown on Democrats' health care demands, while Democrats insist Republicans need to negotiate.
The Trump administration has threatened mass layoffs of some federal workers during the shutdown.
While holding a press conference announcing a deal with Pfizer to lower drug costs, President Donald Trump was asked if a government shutdown is inevitable, to which he replied: "Nothing is inevitable, but it is probably likely."
Trump added that "we can do things during the shutdown that are irreversible," as the government funding deadline approaches.
In a press conference at the Oval Office, President Donald Trump announced that Pfizer has "agreed to provide some of the most popular current medications to all consumers at heavily discounted prices of anywhere between 50 and even 100%."
He said this deal with Pfizer will have a "huge impact on bringing Medicaid costs down like nothing else."
Trump also announced that Pfizer will invest $70 billion for manufacturing and research in the United States.
The CEO of Pfizer, Albert Bourla, was in attendance for the announcement, and said they are "turning the tide and reversing an unfair situation."
The medications will be available for direct purchase online on a website, which will be called Trump Rx, that will be operated by the federal government, according to the Director of Medicare and Deputy Administrator of CMS Chris Klomp.
President Donald Trump is expected to announce on Tuesday a new deal with Pfizer to lower drug costs, according to a White House official.
"While Democrats are threatening to shut down the government to subsidize health care for illegal aliens, President Trump is leveraging the power of the federal government to drastically cut drug prices for everyday Americans. Democrats talked the talk for decades about drug prices, but only President Trump is actually walking the walk," White House Spokesman Kush Desai said in a new statement about the move.
Pfizer's CEO, Albert Bourla, will be in attendance for the announcement on Tuesday, according to the White House officials.
The event was slated as an 11 a.m. announcement in the Oval Office on the president's official schedule.
-ABC News' Michelle Stoddart
President Donald Trump said the Department of Defense's name change to the Department of War will "stop wars."
Trump, while speaking to top-ranking generals, said the United States Armed Forces will be "totally unmatched in the future" and that other countries "don't even come close to matching us."
"No adversary will stand in our way," Trump said on Tuesday.
He added that the country will continue to "fight, fight, fight" and "win, win, win."
