By Vicki Needham - 08/04/10 03:46 PM EDT
Senate Majority Leader Harry Reid (D-Nev.) argued the bill is fully paid for and doesn't increase the deficit. The Senate voted to waive the point of order.
The bill would provide $16 billion in Medicaid funding to states and $10 billion for teachers and first responders.
The measure is paid for by closing corporate tax loopholes that allow U.S.-based multinational companies to use foreign tax credits to reduce their U.S. taxes. The measure also rescinds about previously appropriated money and cuts future food stamp benefits.