Despite strong Republican opposition, the Senate voted 61-37 in favour of an $828 billion fiscal stimulus package on Tuesday.
The victory is but another hurdle in the lengthy negotiations on Capitol Hill that has resulted in a sharp criticism between Democrats and Republicans over a lack of bipartisanship from both parties.
While Democrats contend that both sides have made numerous compromises on the bill, Republicans criticized the legislation for containing wasteful spending provisions.
Three moderate Republicans joined the 58 Democrats in the Senate to pass the legislation. Of the 38 votes against the bill, all were from Republicans.
Last week's $819 billion bill approved by the House received no Republican support.
However, the final passage of a bill is far from near. Both the House and Senate will have to construct and vote on a final version of the bill before it can go to President Barack Obama's desk.
While both the Senate and House versions of the bill are similar in size, key differences remain in the size of the tax cuts and spending portions of the bill.
The House version also includes a $56 billion provision for local government spending on education, while the Senate bill includes $11.5 billion in auto purchase incentives, and $35.5 billion to spur home buying.
Meanwhile, U.S. President Barack Obama is touring across the country to improve public sentiment over the package. On Tuesday he will speak at a Town Hall meeting in Fort Myeres, Florida.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2009