On a vote of 45-52, the Senate has defeated a $141b package of tax incentives and unemployment insurance benefits, among other items, that would have added nearly $80 billion to the deficit.
Read more background on the bill here.
A handful of Democrats voted with Republicans to bring down the measure, including Sens. Lieberman, I-Conn., Webb-D-Va., Landrieu, D-La., Bayh, D-Ind., and Menendez, D-N.J, (Menendez is also chair of the Democratic Senate Congressional Committee).
Democrats are expected to quickly unveil a slimmed-down alternate package shortly.
11 Dems vote to defeat the measure:
Full list of Dems/Independents voting NO: Evan Bayh (Ind.), Begich (Alaska), Feingold (Wis.), Kohl (Wis.), Landrieu (La.), Lieberman (Conn.), McCaskill (Mo.), Nelson (Neb.), Nelson (Fla), Pryor (Ark.), and Webb (Va.).
Senators missing the vote: Sens. Bob Byrd, D-W.Va., Blanche Lincoln, D-Ark, and Pat Roberts, R-Kan.