The Senate, following the leadership of conservative Republicans, rejected yesterday a compromise $30.6 billion, two-year authorization for housing and urban development programs that President Reagan had threatened to veto as too expensive.
The bill was taken off the floor by Senate Majority Leader Robert C. Byrd (D-W.Va.) after the Senate defeated 57 to 43 a motion to overcome a procedural objection raised last week by some Republican senators.
Sixty votes were necessary to waive violations of the budget law and allow consideration of the bill on its merits. The Senate rejected a similar waiver last Friday by 53 to 40 after the House earlier in the week had approved the compromise 391 to 1.
Sen. Alan Cranston (D-Calif.), the bill's floor leader, said he could bring up another version of the housing bill that had been passed by the Senate last March but changed by the House. He said he also might seek another compromise with the House.
Sen. William L. Armstrong (Colo.), one of the GOP opponents of the conference report, said he and other conservatives would prepare a substitute measure for the Senate to consider.
The compromise legislation would have provided about $15 billion this year and next, a figure Reagan said was a "budget-buster." His words were echoed by Republicans during the debate on the bill. The Reagan administration had proposed a budget authorization of $10.2 billion a year.
The compromise held spending for most housing and development activities at current levels, providing $3 billion for community development block grants and urban development action grants, a program the administration has been trying to eliminate for several years.nston and the Senate leadership for their willingness to go back to the conference committee and start negotiations all over again."