The US Senate has blocked a key piece of President Barack Obama's jobs bill that would have imposed higher taxes on the rich to help create jobs for teachers, police and emergency workers.
Senators voted 50-50 on the legislation, 10 short of the 60 votes needed to allow debate on the measure.
The proposal is part of Mr Obama's $447bn (£283bn) package designed to kickstart the flagging US economy.
The plan also failed in the Senate and is now being proposed piece-by-piece.
The president has been on the road regularly in recent weeks pushing his plan, but Republicans remain opposed.
"For the second time in two weeks, every single Republican in the United States Senate has chosen to obstruct a bill that would create jobs and get our economy going again," Mr Obama said in a statement, describing their position as "unacceptable".
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