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House lawmakers voted Monday to reject the historic $700 billion financial rescue plan, a sharp blow to the administration and bipartisan leaders in Congress who warn that the country is on the brink of an economic precipice.

With elections approaching, some lawmakers -- both Democrats and Republicans -- may feel nervous about voting for a plan that risks so much taxpayer money and can't promise success. But the president has lobbied hard to approve the plan, and U.S. officials also have stressed the dire consequences of taking no action.

There were 205 in favor of the legislation and 228 against. Among Democrats, 140 voted in favor and 95 against. Among Republicans, 65 voted in favor and 133 against.

Critics say the plan does not adequately address problems such as job losses and a distressed housing market that underlie current economic weakness. U.S. officials had hoped the plan would ease the credit crunch and restore confidence in the markets, even as markets plunged around the world. Those in favor of the rescue plan may have been trying to treat the most manageable symptom -- a frozen credit market -- if not the actual disease.
A vote in the Senate was expected Wednesday, and the president would have followed with a speedy signature.