President Trump will return to the effort to replace Obamacare when the law fails and Democrats are blamed, his budget director said Sunday.

Appearing on NBC's Meet the Press, Office of Management and Budget director Mick Mulvaney said that Obamacare is "going to break," at some undetermined point in the future. At that time, Trump will again try to push replacement legislation.

When it does fail, Mulvaney added, "the Democrats will be blamed for it," because the failure Friday of replacement legislation means that Obama alone is to blame for the performance of the healthcare system.

For now, the White House is moving on to other agenda items. But that's not a capitulation, Mulvaney argued Sunday, saying that the White House left "no stone unturned" trying to win over Republicans on the replacement legislation. And the administration's stance is still that Obamacare "must be removed," Mulvaney said. "It must be repealed and replaced."

Asked why Trump failed to see the legislation through after depicting himself as a negotiator, Mulvaney responded that Washington, D.C. is more "rotten" than Trump realized.

"What happened is Washington won," Mulvaney said of the healthcare debacle. "Washington is a lot more broken than President Trump thought."