Amid the intensifying Russia-Ukraine war, the US Senate Republicans blocking the aid bill has come as a big blow to Ukraine. In the $110 billion package includes $61 billion for Ukraine that was set to be passed by the Senate.
The bill for Ukraine was not passed after failing to secure border compromises they sought in exchange.
Earlier White House has warned that US funds for Ukraine could soon run out. If Ukraine is not able to secure funds from US, then the nation is likely to lose its war.
Senators- including every single Republican- voted 51 to 49 against advancing bill, with 60 votes needed.
Republicans are insisting that any aid to Ukraine be tied to sweeping US immigration and asylum reforms.
US President Joe Biden said that he was "willing to make significant compromises on the border" inorder to get the aid bill passed.
The Biden administration announced $175m in new security assistance for Ukraine from the supply of funding that has already been approved. The package includes ammunition, missiles, artillery shells and equipment to protect critical national infrastructure, the US Department of Defence said in a news release.
Head of Ukraine's presidential office, Andriy Yermak, told an audience at the US Institute of Peace that a failure to secure more US aid would mean a "very high possibility" that the war will be lost and that it will be "impossible to continue to liberate" Russian-held areas.
Meanwhile, Kremlin accused President Joe Biden of seeking to demonise Russia in order to wring more funds from Congress to keep the Ukraine war going.
Biden had pleaded with the Republicans that a victory for Russia over Kyiv would leave Moscow in position to attack NATO allies and could draw US troops into a war.
"We very much regret that the U.S. leadership continues its habit of using Russia as a tool in its domestic affairs," said Kremlin spokesman Dmitry Peskov.
"We believe that this is a very unfortunate practice, and we would like to hope that there are still many people with sober minds among American congressmen who understand that this is nothing but absolute demonisation aimed at manipulating them," he added.
Putin sent troops into Ukraine early last year triggering a war that has killed or wounded hundreds of people.
(With agencies input)