Members of the House voted 205-228 today against the proposed Emergency Economic Stabilization Act of 2008.
Shortly before the final tally was announced, the Democrats had voted 141-94 for the measure, which was requested by the Bush administration.
Republicans had voted 66-132 against the measure.
One Republican had not voted.
During debate, supporters argued that Republicans and Democrats would have to unite to pass an financial institution asset repurchase plan to reassure the financial markets.
Opponents argued that the EESA proposal was too expensive, designed behind closed doors, and likely to fail.
House Speaker Nancy Pelosi, D-Calif., blamed “failed Bush economic policies” for creating the current economic turmoil, and some Republicans said her speech may have alienated Republicans who might have voted for the bill.
After the vote, supporters talked briefly about immediately calling for another vote, but Rep. Barney Frank, D-Mass., chairman of the House Financial Services Committee, said the House should go with the regular order.
It was not clear at press time what steps, if any, the White House and congressional leaders were taking to pass the current asset repurchase measure, which was attached as an amendment to H.R. 3997, or to come up with a replacement proposal.
The Treasury Department says Treasury Secretary Henry Paulson “will be consulting with the president, the chairman of the Federal Reserve, and congressional leaders on next steps.”