U.S. Senate blocks House-passed disaster aid bill

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U.S. Senate blocks House-passed disaster aid bill

The Associated Press Published Friday, September 23, 2011 12:53PM EDT

South Los Angeles resident Christian Del Cid waves banners calling for good jobs, on a bridge in front of oncoming traffic at the Interstate I-110 overpass on a "structurally deficient" bridge to call on U.S. Congress to provide funding for highway improvement projects that would create local jobs Thursday, Sept. 22, 2011, in Los Angeles. (AP Photo/Damian Dovarganes)

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WASHINGTON - The Democratic-led Senate has blocked a House-passed bill that would provide disaster aid and pay to keep federal agencies open, escalating the latest partisan clash over spending.

The near-party line 59-36 vote set up a fresh round of brinksmanship between the Senate and the Republican-run House of Representatives. A government fund for disaster victims will run out of money early next week, and government agencies would have to close if Congress does not finance them by Oct. 1, the start of the federal fiscal year.

The House of Representatives passed legislation early Friday to funding government agencies and providing $3.7 billion in disaster assistance. That aid would be partly paid for with cuts in two loan programs that finance technological development.