Washington  - In a shocking development that plunged the United States back into uncertainty Monday, the US House of Representatives rejected a massive government plan to rescue the economy from the brink of financial meltdown.

The House voted 228-205 against the bill. Republicans led the opposition, voting 2-1 against the 700-billion-dollar bail-out plan. There was a small possibility the bill could come up again with some new amendments included.

The likely rejection came despite dire warnings and support for the bill from congressional leaders of both political parties, as well as US President George W Bush.

US stocks plunged on the news. The Dow Jones Industrial Average was down more than 500 points. (dpa)