During a private meeting with lawmakers Thursday, he stunningly questioned why the USA would admit Haitians or people from "shithole" countries in Africa, expressing a preference instead for immigrants from Norway, a majority white nation.
Mr Trump's comments were allegedly made on Thursday at a White House meeting on immigration reform.
Trump on Friday denied describing certain nations as "shithole countries" after triggering global outrage.
While Trump denied the widely reported comment in a tweet, Senator Dick Durbin of IL, one of the top-ranking Democrats and a longtime supporter of immigration reform, said he "personally heard" the president's comment, and that Trump had repeatedly used "hate-filled, vile and racist" words.
Trump's insults - along with his rejection of the bipartisan immigration deal that six senators had drafted - also threatened to further complicate efforts to extend protections for hundreds of thousands of young immigrants, many of whom were brought to this country as children and now are here illegally.
The state's top nation as a source of immigration is India.
Trump later went on to argue: "Never said anything derogatory about Haitians other than Haiti is, obviously, a very poor and troubled country". Absent a budget, the federal government will have to shut down. Without it, "here's what we're going to do".
After the Trump show, Durbin went back to the Capitol and huddled with the Senate bipartisan immigration group he has been negotiating with for months. "Because if it wasn't, it would mean we voted for a racist, like a real one". "He said those hate-filled things and he said them repeatedly", Senator Richard J. Durbin of IL, who was in the room, said Friday.
On Friday evening the embassy released a statement which was potentially embarrassing for the President, as a spokesman explained it was not Barack Obama who made the decision, but George W Bush - a fellow Republican. Miller reacted with outrage, and repeatedly cast the goal as reducing the mere numbers of immigrants - ostensibly to protect American workers from competition - which he said was in keeping with previous periods of lower immigration.
Trump, "in the course of his comments, said things which were hate-filled, vile and racist", Durbin told reporters.
Some of the comments were published in a new book about Trump's first year, "Fire and Fury: Inside the Trump White House" by Michael Wolff, which White House press secretary Sarah Huckabee Sanders has denounced as "complete fantasy" for portraying her 71-year-old boss as undisciplined and in over his head as president.
Former U.S. ambassador to the U.N. Samantha Power has shared the statement on Twitter, saying: "Whoa".
"The DREAM Act must not be used to implement a family ban by altering the current family sponsorship system, cancel the diversity visa program or allocate our hard-earned taxpayer dollars to building a wall", the statement read.
Conservatives expressed concern more about the weapon Trump had given to his opponents than it what he said.
The administration announced previous year that it would end a temporary residency permit program that allowed almost 60,000 Haitians to live and work in the U.S.in the wake of a devastating 2010 quake.
Notably, the White House did not deny Trump's comments and instead endorsed the spirit of what he appeared to be saying.