Nevada Democrat Harry Reid gave up on the nearly $1.3 trillion bill after several Republicans who had been thinking of voting for the bill pulled back their support.
GOP leader Mitch McConnell threw his weight against the bill in recent days, saying it was in his words "unbelievable" that Democrats would try to muscle through in just a few days legislation that usually takes months to debate.
McConnell had earlier quietly backed the effort to produce the nearly $1.3 trillion bill. McConnell also obtained $85 million in so-called earmarks for Kentucky.
Reid said he would work with McConnell to produce a short-term funding bill to keep the government running into early next year.