The debt ceiling plan proposed by US speaker John Boehner got 41 supportive votes in the Senate while 59 votes were casted against the plan.
Earlier on Friday, Republican lawmakers in the US House of Representatives passed the Lawmakers in the House passed the Boehner’s plan by a vote of 218-210.
Democrats opposed the measure because it would require another painful debt-limit debate early next year.
Earlier on Friday, with the threat of a default looming, US President Barack Obama warned Americans that the US will lose its top credit rating should it be unable to raise the debt ceiling by midnight on Monday.
Obama urged Americans to pressure Congress and Republican leaders toward a compromise. The president told supporters that even though it has come down to the wire, he’s confident a bipartisan solution is still achievable.
“There are plenty of ways out of this mess, but we’re almost out of time,” Obama said at the White House.