The effort to block the legislation caused an uproar among veterans groups, with critics arguing that aid for veterans was being held hostage over GOP opposition to another measure, the Inflation Reduction Act, which includes significant amount of money to combat climate change and lower health care costs.

Republicans said their opposition was tied to an argument over which portion of the federal budget would pay for $280 billion worth of funds for veteran health programs. But Democratic lawmakers contended that the about-face came just after Democrats reached an agreement of their own on a separate reconciliation bill.

CNBC's Ylan Mui joins Shep Smith to report on a major u-turn in Congress as Democrats and Republicans have reached an agreement to pass the PACT Act, which provides health and disability benefits to veterans. And economists debate the impact of the Inflation Reduction Act.

Shortly after the PACT Act was blocked, several citizens and prominent activists called out GOP members for voting against the bill. Moreover, footage showing Republicans celebrating the decision inside the Senate left some people enraged.