Reid criticized Republicans for "avoiding tough choices we need to make" and for refusing to compromise as a shutdown looms this weekend.
Meanwhile, House Republicans are proposing another short-term stopgap measure that would cut $12 billion in spending cuts, fund the Defense Department through the rest of the year and, avoid a shutdown for another week.
Reid called the plan "a short cut around doing our jobs." and said "it's not just bad policy it's a fantasy."
Some lawmakers said talks were progressing on a long-term agreement but time is running out.
"It's time for my friends in the House to stop campaigning and start governing," Reid said.
President Obama has urged Congress to reach an agreement on a spending bill that would fund the government for the rest of the year. Many lawmakers have expressed opposition to funding the government a week at a time.