"Today I am vetoing this resolution".
Senate Democrats, who have consistently opposed many of Trump's hardline immigration policies, were joined by Republicans who expressed support for Trump's calls to build a wall - but cited concern about the expansion of presidential power. The House previously passed the resolution last month, 245 (including 13 Republicans) to 182.
The renegade conservatives had condemned the emergency declaration for setting up a risky precedent for a president while emphasising that they still agreed with Mr Trump's tough border security policies.
Alexander added that he shares the president's goal of border security, but warned allowing Trump to redirect money without authorization could set a unsafe precedent.
It is not believed there are enough votes to override the president's veto, which would require a two-thirds majority in both chambers.
Trump had sought to frame the issue as voting for him or for "Nancy Pelosi, Crime and the Open Border Democrats". Mitt Romney, R-Utah, told reporters.
Lee proposed a version of the resolution that would have restricted future emergency declarations while grandfathering in Trump's, but he couldn't reach a compromise agreement with the White House, and the plan fizzled.
"We had a war against a king in the American revolution", said Sen. "The president didn't appear interested".
The president made a border wall a central promise of his 2016 campaign for the White House.
"People hate the word invasion, but that's what it is", Trump continued, calling the resolution "dangerous" and "reckless". The resulting deadlock shut the government for five weeks, during which time workers were furloughed or forced to work without pay.
As the USA and the European Union struggle to iron out their differences on trade, Trump said, "they are willing to talk to us and if they don't talk to us, we're going to do something that's going to be pretty severe economically". Hours later he flew to his Mar-a-Lago resort in Florida for a weekend of golf.