Senate Republicans blocked a bill to increase lending to small businesses on Thursday, with the vote raising concerns about whether the Senate will be able to pass the bill before the August recess.
The Senate voted 58 to 42 to end debate on the bill, falling short of the 60 votes needed. All 41 Republicans voted against the motion, and Senate Majority Leader Harry Reid, D-Nev., switched his vote in order to call up the bill again at a later time.
The bill would create a $30 billion fund to help banks increase lending to small businesses as well as provide $12 billion in tax breaks.
Republicans largely voted against the motion to cut off debate in protest of their inability to offer amendments to the bill, including measures to increase border security, cap government spending, and lower the estate tax.
Sen. Orrin Hatch, R-Utah, in particular blasted Democratic leadership for blocking a motion that would have sent the bill to the Senate Finance Committee in order to add an extension of the Bush tax cuts that are due to expire at the end of the year.
"It was very clear from the beginning there was a path for this bill to pass with a broad bipartisan majority," said Minority Leader Mitch McConnell, R-Ken., "Instead, we're standing here this morning looking at the third version of a bill and we have yet to engage in any substantive amendment process."
He added, "They've been adding either controversial or completely unrelated matters to this bill — all to avoid any real debate and to avoid voting on Republican amendments."
While Democrats had offered votes on three Republican amendments, McConnell said the GOP wanted votes on eight amendments.
Reid expressed a great deal of frustration with the GOP in a statement released after the vote, saying, "I do not understand how Republicans can turn this into a partisan issue. What we are simply trying to do is pass a bipartisan bill that will help small business owners create jobs."
The majority leader argued that Democrats went to great lengths to address Republicans' concerns, including removing a provision dealing with agriculture-related disasters and agreeing to a number of amendments.
"But what is becoming clearer with each passing day is that Republicans have one objective: grind our work to a halt, even if it means more suffering and hardship for the middle-class families and small businesses who are still struggling to recover," Reid said.
He added, "Republicans need to stop betting on failure and get serious about putting our economy back where it needs to be. Democrats will not rest until America's small businesses get the support they deserve."
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.