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The main sticking-point had been the refusal of America's Food and Drug Administration to forgo its right to approve all products sold in the United States.
ECONOMIST: Europe and America
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The refusal to compromise, rapidly becoming a point of honour for both parties, is wreaking damage elsewhere, partially shutting down the Federal Aviation Administration (see article) and postponing trade bills.
ECONOMIST: America's economy
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Senate Minority Leader Mitch McConnell said the sticking point was the United Auto Workers' refusal to set a "date certain" to put employees at U.S. auto manufacturers at "parity pay" with U.S. employees at foreign automakers in the United States.
CNN: Auto bailout bill dies in Senate
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As to the major point that Krugman is making, that there does seem to be a blanket refusal to believe, on one side of the political aisle, that climate change is a problem we should do something about, well, yes, it seems that there is.
FORBES: Not Quite Professor Krugman, Not Quite