The Trump administration earlier this month terminated the payments, which help cover out-of-pocket medical expenses for low-income Americans.
The deal worked out by Republican senator Lamar Alexander and Democratic senator Patty Murray would meet some Democratic objectives, including reviving the subsidies for Obamacare.
Almost immediately after saying he empathised with the effort by his former strategist Steve Bannon to back challenges against Republican senators in next year’s congressional elections, Trump stood with Senate majority leader Mitch McConnell.
His decision is likely to please those among his political base who detest the Obamacare system, which many Republicans have attacked for years as an unneeded government intrusion in Americans’ healthcare.
Several experts in healthcare and employment law said Trump’s plan could violate the US Employee Retirement Income Security Act.
The party was unable to win enough support from its own senators for a bill to repeal the 2010 Affordable Care Act and decided not to put it to a vote.
Susan Collins announced her opposition shortly after the non-partisan Congressional Budget Office said that the number of people with health insurance covering high-cost medical events would be slashed by millions if it were to become law.
US Senate finance committee chairman Orrin Hatch said on Monday that senators for now are too divided to keep working on healthcare overhaul legislation.
But it was unclear whether White House admonishments would impact Capitol Hill, where Republicans signaled it was time to move on to other issues.
Three Republicans crossed party lines to join Democrats in a 49-to-51 vote to kill the Bill.
The last-ditch effort came after senators voted 55-45 against a straight repeal of Obamacare, with a two-year delay for Congress to work out a replacement.
The Senate deadlocked 50-50 on moving forward with the healthcare debate, forcing vice president Mike Pence to cast the tie-breaking vote.
For seven years, Republicans promised to repeal and replace Obamacare, but they have struggled to do so once in power.
The urgency of the senate Republican effort to pass a healthcare bill is such that McCain will come to vote amidst his battle with aggressive brain cancer.
The US Senate said certain provisions in Republicans’ new healthcare bill, such as defunding Planned Parenthood, could not be included.
Trump called 49 Republican senators to the White House for lunch, telling them they needed to settle their differences and postpone the summer recess.
With Republican senators Mike Lee and Jerry Moran joining senators Susan Collins and Rand Paul in opposition, the Senate could not pass the Bill.
Congressional efforts to do away with Obamacare threatens leaving millions of Americans without any health insurance.
John McCain’s absence cast doubt on whether the Senate would be able to pass the legislation to dismantle and replace Obamacare.
The Bill played to the party’s disparate factions by letting insurers sell cheap, bare-bones policies while retaining taxes on the wealthy.
It remains to be seen whether majority leader Mitch McConnell can satisfy moderates and hard-line conservatives in his party who have voiced opposition.
While Democrats claim the new Bill is massive wealth redistribution for the rich, moderate and conservative republicans are torn over its provisions.
The Senate Bill, which faces unified Democratic opposition, has been imperiled during the recess, as Republican senators faced constituents opposed to it.
US President Donald Trump urged Republican senators in a tweet to repeal Obamacare immediately even if they cannot agree on a new plan to replace it.
Trump aired his grievance on twitter, “If Republican Senators are unable to pass what they are working on now, they should immediately REPEAL, and then REPLACE at a later date!”
Senate Majority Leader Mitch McConnell abandoned plans to seek passage of it this week because Republicans did not have the requisite 50 votes to pass it.
Protests outside the Capitol building intensify and there is growing dissent even from inside the Republican Party against the bill as the US markets wobble in face of the political uncertainty.
The non-partisan Congressional Budget Office’s assessment of the bill which provided the number has worried many legislators across the political aisle.
The healthcare Bill features sharp cuts to the Medicaid programme, drawing strong opposiyion from Democrats, protestors and even certain Republicans.
The healthcare Bill is being written behind closed doors, making the public and many legislators apprehensive.
In a thinly veiled reference to Trump’s ‘US-Mexico wall’, Obama said the world was shrinking and it was not possible to stay isolated from troubles abroad.
Republicans have sought to unravel Obamacare since its passage and President Trump promised on the campaign trail to repeal it.
The plan would cut $3.6 trillion in government spending over ten years, balancing the budget by the end of the decade.
Several Republican sceptics got behind the Bill after they met with Trump to float a compromise proposal that is still expected to face unanimous Democratic opposition.
As Republican moderates hold out for fear of receiving backlash from voters, this puts Trump in danger of his second major legislative setback.
If this deal passes congress and the president signs it into law it would mark the first significant bipartisan legislation since Trump took office.
Trump’s decision to take the wall off the table for now will avert the imminent government shutdown and probably lead to a short-term extension of spending.
The Republican president is at loggerheads with the Democrats who oppose his US-Mexico wall while he offers money in exchange to keep Obamacare going.
Trump seeks to revamp healthcare plan to replace Obamacare which has been criticised by the Republics as a government overreach.
The lack of a resolution complicates a White House push for a House vote on a healthcare proposal before Friday, when lawmakers return to their districts for two weeks.