WASHINGTON — The Senate refused to kill a $5 billion annual subsidy for ethanol on Tuesday, backing continued government aid for a Farm Belt-based industry over deficit reduction in an era of record red ink.
The 40-59 vote, far short of the 60 needed to advance the measure, reflected regional as well as partisan differences, a split among Republicans and anything but the final word on the issue.
“We continue to spend money that we don’t have on things that we don’t need,” said Sen. Tom Coburn, R-Okla., a prominent deficit hawk who led the effort to eliminate the subsidy immediately.
Supporters of federal spending for ethanol argued it is a leading source of alternative fuel and is needed to reduce U.S. dependence on foreign oil.
“With conflicts in the Middle East and crude oil priced at more than $100 a barrel, we should be on the same side. Why would anyone prefer less domestic energy production?” Sen. Chuck Grassley, R-Iowa, said Monday, when the measure was debated at length.
Grassley’s state leads the nation in harvesting corn and blending it into alternative fuel. Other leading ethanol states are Nebraska, Illinois, Minnesota, South Dakota and Indiana, and all of their senators from both parties opposed ending the subsidy.
Both of Colorado’s senators voted against advancing the measure to end the subsidy.
