"They created a series of documents that nobody was able to read", he complained about the 2,000-plus page bill - which Congress passed before most members had time to read it.
"It fails to provide sufficient funds to properly secure our border, let alone build the wall that is necessary", he said in a statement.
Trump sought $25 billion from the USA government to fund the wall, but the plan included significantly less - just $1.6 billion for building new sections of wall and replacing older sections.
Last Friday, just hours before funding for federal government operations was expected to run out, Congress approved - and Trump signed - a $1.3 trillion budget bill for Fiscal 2018, including $1.6 billion to start building the controversial wall the president claims will choke off illegal migration from Mexico, Efe reported.
Budget director Mick Mulvaney had said Thursday the president would sign the bill and Republican House Speaker Paul Ryan said Trump was supportive. Trump tweeted on Sunday. Most lawmakers have already left Washington for a two week recess.
Along with the recent tax cuts law, the bill that stood a foot tall at some politicians' desks ushers in the return of one trillion dollar deficits.
Trump tells Congress party's over after reluctantly signing budget-busting spending bill
His threat to veto the bill contradicted the official stance presented by the White House just hours earlier. President Trump speaks with Vice President Pence and Defense Secretary Mattis at his side. .
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"Obviously he doesn't like this process - it's unsafe to put it up to the 11th hour like this", said Senator David Perdue, who opposed the bill and speaks regularly to Mr Trump.
"There are missed opportunities that I think it should've had", he said.
Trump went on to address critics who accused him of signing a spending package that shortchanged his immigration and border security agenda.
A contrast of what other government officials have said. "But we think that we got many of our priorities funded".
The first planned sections of the Trump border wall would tear through public lands, ranchlands, national historic sites and the National Butterfly Center in the Rio Grande Valley.
The President tweeted Friday morning he was considering vetoing the $1.3 trillion bill because it did not address the almost 800,000 undocumented immigrants that came to the country illegally as children and does not fully fund his border wall.
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