A majority of U.S. lawmakers say the revised economic bailout plan defeated Monday failed to address major concerns.
Lawmakers had modified President George Bush's original $700 billion plan to rescue key financial institutions by adding more scrutiny and limits on dispersing the money.
The Congressional measure would have phased in funding, provided homeowners some protection and let them share in any profits of the financial firms receiving the money.
But even in its modified form, enough opposing members of Congress felt the bill was still flawed.
They said both the original bill and the defeated measure put the taxpayer at far too great a risk for the benefit of large corporations and did not address underlying economic problems.
Most members of Congress face verdict of voters during election day November 4.