The president had demanded $5.7 billion to fulfill his long-promised project to build a wall on the southern border.
Another plunge in the price of oil is driving stocks sharply lower in afternoon trading.
Consumer sentiment hit its highest level in nearly eight years.
Bill sponsor U.S. Sen. Mary Landrieu (D-La.) and supporter U.S. Sen. John Hoeven (R-ND) both stood on the Senate floor and said Keystone XL is not an export pipeline in the minutes leading up to the bill's failure.
The fact is -- given a bit of clear thinking unencumbered by all of the noise -- none of the issues perpetuating our current national crisis are going to be solved by the screaming children in the room so why join them as it will only serve to hamper much needed solution.
Income inequality is killing the economy. Retailers, bankers and Democrats agree on that. Really. It's only Republicans who continue to insist that income inequality is great.