The Senate measure, which passed 83 to 7 in the Democratic-led chamber, was included in a must-pass spending bill that funds housing and transportation programs for the fiscal year that starts October 1.
"This is an opportunity for the United States Senate to stand up and say 'Enough is enough' just as the Census Bureau did," said Republican Senator Mike Johanns, the measure's sponsor.
The bill includes $165 million for housing-counseling programs and $4 billion to help poor communities weather the worst recession since the 1930s.
ACORN said the Senate's action was disappointing but would have little impact on its overall operations.
"The only real victims of today's vote are the families who have benefited from ACORN's important work," ACORN chief Bertha Lewis said in a statement posted on the group's website.
The House of Representatives passed a similar spending bill without restrictions on ACORN. The House and Senate must resolve differences before a final measure can be sent to Obama to sign into law.
The following 7 Senators voted against the measure: Burris (D-IL), Casey (D-PA), Durbin (D-IL), Gillibrand (D-NY), Leahy (D-VT), Sanders (I-VT), and Whitehouse (D-RI).
How ironic is it that ACORN might just lose all its funding under THE community organizer-in-chief, Barack Obama?