WASHINGTON - (AP) - The Democratic-led Senate has blocked aHouse-passed bill that would provide disaster aid and pay to keepfederal agencies open, escalating the latest partisan clash overspending.

The near-party line 59-36 vote set up a fresh round ofbrinksmanship between the Senate and the Republican-run House. Agovernment fund for disaster victims will run out of money earlynext week, and government agencies would have to close if Congressdoesn't finance them by Oct. 1, the start of the federal fiscalyear.

The House passed legislation early Friday funding governmentagencies and providing $3.7 billion in disaster assistance. Thataid would be partly paid for with cuts in two loan programs thatfinance technological development.

Democrats complained that the House measure was too stingy andsaid cutting the loan programs would kill jobs.