On Tuesday, the parliamentary chamber voted down the funding for a second time, despite the requested amount being reduced to CHF66.5 million.
The House of Representatives supports the funding that cannot be released until both chambers agree.
In instances where parliamentary chambers cannot agree on funding matters, the decision that involves less public outlay takes precedent.
Cantons wanted the money to fit out new refugee centres, having exhausted all the facilities that were offered by the army.
Last year Switzerland registered 24,500 asylum-seekers, which was 64% more than the previous year. This excludes some 75,000 Ukrainian refugees, who received a special protection status through an accelerated registration process.
Refugee numbers this year are estimated anywhere between 27,000 and 40,000.
The situation has been made worse by an Italian decision to maintain a ban on re-admission of refugees from neighbouring countries that it imposed in December.
This prevents Switzerland from sending refugees back to Italy.
Most Read Swiss Abroad
More
In Switzerland, New Year brings ‘burka ban’ and pension hikes
This content was published on
More than six years after its launch, the 'Bepicolombo' space probe flew past the planet Mercury for the last time on Wednesday.
Swiss scientists discover unusual zones in Earth’s mantle
This content was published on
Using high-resolution models to study the Earth's mantle, scientists have identified zones of rocks in the lower mantle that are colder, or have a different composition, than surrounding rocks.
Egyptian diplomat’s murder: prosecutor calls for acquittal of defendant’s girlfriend
This content was published on
The Swiss attorney general has called for the girlfriend of the main defendant in the case of the assassination of an Egyptian diplomat in Geneva in 1995 to be acquitted. The woman is charged with complicity.
Low-cost e-tailers Temu and Shein put Swiss retail sector under pressure
This content was published on
Most Swiss retailers are concerned by the stiff competition from China's low-cost online platforms Temu and Shein, according to a survey.
This content was published on
More and more offices are standing empty in Switzerland's major cities. Nevertheless, new office constructions are likely to increase in the future, a study shows.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
Swiss government plans more accommodation for asylum seekers
This content was published on
The Swiss government has asked parliament to set aside CHF132.9 million ($155 million) to create additional accommodation for asylum seekers.
Swiss asylum requests expected to remain high in 2023
This content was published on
The head of the State Secretariat for Migration says that the economic consequences of the Ukraine war are expected to keep asylum requests high.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.