The vote was held open after the allotted time had expired, with a majority already having cast votes against the bill. Under the latest tally, 226 lawmakers had voted against the bill and 207 had voted in favor.
Stocks plunged as soon as it became apparent that the bill was unlikely to pass. The Dow Jones Industrial Average fell as much as 700 points before paring those losses.
Congressional leaders had predicted a close vote. The White House Monday said President Bush strongly supported the legislation.