The defeat of 46 to 53 was 14 votes short of 60 needed to end the debate on bill for amendment considerations to proceed, and now all but dashes hopes of meaningful legislation being introduced by the end of this year.
The bill, which would have tightened border control, was both an attempt by to both crack down on the problem yet provide ways for processors and others to access cheap workers.
If it had been successful, the legislation would have offered legal status to 12 million undocumented immigrants. It would also expand a guest-worker program. Employers would also have a means for verifying the legal status of workers, which would absolve them of any liability if illegal employees are subsequently found on their sites.
Many of the estimated 12 million undocumented immigrants in the US work in the food industry, which has come under increasing scrutiny in the latest crackdown.
Earlier this month, Del Monte's plant in Oregon was raided with 170 arrests made.
Tyson Food, Swift & Co and Smithfield have also been targets for recent raids, highlighting the dangers processors face in the present climate.
Announcing the proposals in January, US president George Bush said the number of illegal workers caught at manufacturing sites has increased dramatically during the present administation's term in office.
Bush noted that the number of illegal workers caught at manufacturing sites has increased dramatically during his term in office. About 4,300 arrests were made in worksite enforcement cases during 2006, more than seven times the arrests in 2002.