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16
Jun 2010
U.S. Senate defeats state aid package

California's bid to get Congress to chip in $1.8 billion to help close the state's budget gap is all but dead.

In a key test vote today, the Senate agreed to uphold Republican objections to a bill that included $24 billion in aid to the states, including the money for California. It's part of a broader $140 billion package that would extend unemployment benefits and some tax breaks to businesses.

Republicans objected to the legislation because they said it would drive up the federal deficit. The Senate voted 45-52 to uphold Republican objections on budgetary grounds. It would have taken 60 votes for Democrats to win and waive the point of order.

States could still end up receiving some money, but it's uncertain how much. After the vote, Senate Democratic leaders indicated that they may try to come back with a smaller package.

The state-aid package has already been defeated in the house.

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