The measure -- which passed by a 74-25 vote -- had been changed to include tax breaks and other sweeteners.
It's meant to allow the government to spend billions of dollars to buy bad mortgage-related securities and other devalued assets held by troubled financial institutions. It also allows frozen credit to begin flowing again.
The House's 228-205 rejection of an earlier version of the bill sent the stock market tumbling Monday.
New Jersey's House delegation voted 7-6 against that version of the bailout proposal. The House is expected to take up the measure again in the coming days.
