Lawmakers voted 50-50 to move forward with the legislation, falling short of the 60-votes needed to overcome Republican blocking tactics, in another reminder of polarized Washington's struggles to help the brittle US economy.
Republicans opposed the measure because it would have been paid for by a 0.5 percent tax hike on people who earn more than $1 million annually, a step they charged would stifle job-creating investments.
Democrats have vowed to force votes on components of Obama's $447 billion jobs plan after Republicans blocked that overall measure from advancing, citing opposition to his push to raise taxes on the very richest Americans.
The procedural vote was largely a foregone conclusion, but both sides have been working to fire up their supporters and win over voters deeply worried about the economy as the campaign to the November 2012 elections heats up.
The Senate also defeated a Republican-backed proposal to repeal a law under which government agencies withhold three percent of payments to contractors -- an item also included in Obama's overall jobs package.
Lawmakers voted to move forward with that bill by a 57-43 margin, again falling short of the 60 needed.
Democrats -- including the president -- say they back the intent of the legislation but oppose the Republican version because it would be paid for by some $30 billion in cuts to government spending.