United StatesLaw sets Russia sanctions and adds an educator tax deduction
The law directs sanctions and financial limits tied to Russia, extends an Iran sanctions law, and allows qualifying early childhood educators to deduct certain expenses.
What it does
The President must review Russian officials, foreign supporters, and vessels tied to sanctions evasion, then impose property blocks and other penalties when they meet listed criteria.
U.S. people face limits on investing in Russia, buying Russian government debt, and dealing with listed Russian banks. Some licensed or humanitarian transactions are excepted.
The text sets the Iran Sanctions Act’s end date at 2031.
Eligible early childhood educators may deduct qualifying classroom expenses, if they work at a school or child care facility that meets the law’s requirements.
Argument forSanctions could make it harder for Russian officials and foreign suppliers to support military actions against Ukraine by blocking property and transactions.
Argument againstLimits on money transfers could disrupt some payments involving Russia, though transfers allowed by a government license and humanitarian transactions are excepted.
More detail
The President must review people and vessels connected to Russia and impose sanctions when they meet listed criteria. The rules cover Russian government officials, certain foreign people and entities, and vessels meeting the listed criteria. The listed criteria include support for Russia’s defense industry or military, actions against Ukraine, sanctions evasion, and certain oil or other cargo shipments. The President must block covered property and restrict entry to the United States for covered noncitizens; humanitarian, intelligence, and other listed exceptions apply. The first review is due within 30 days after enactment, with further reviews every 180 days.
The law bars specified financial dealings with Russia and directs the President to impose sanctions on certain Russian financial institutions. These restrictions cover U.S. citizens, permanent residents, and U.S.-organized entities, including their foreign branches. U.S. people may not invest in Russia or buy Russian government debt, and specified U.S. banks and securities dealers may not process covered transfers to or from the Russian government. The President must prohibit U.S. dealings with specified Russian financial institutions after 30 days; a foreign bank exception applies if the Treasury Secretary finds sanctions inconsistent with U.S. interests. Humanitarian transactions and other listed exceptions apply. The limits on transfers, investments, and services generally begin 30 days after enactment; the ban on buying Russian government debt begins upon enactment.
The law extends the Iran Sanctions Act of 1996 through 2031. The provision concerns the scheduled end date of the Iran Sanctions Act of 1996. The extension applies by changing the date from 2026 to 2031.
Eligible early childhood educators may deduct certain classroom expenses from income when calculating adjusted gross income. This covers early childhood educators at qualifying schools and child care facilities, alongside kindergarten through grade 12 educators referenced in the provision. The educator must work at a school or child care facility serving more than two children under age six, and the facility must operate at public expense or receive payment or a grant for its services. The deduction is limited to qualifying educator expenses under the tax code. The provision applies to expenses paid or incurred in tax years beginning after December 31, 2025.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 18Signed by President.Became Law
- Sep 18Became Public Law No: 119-111.Minor
- Sep 17Presented to President.To President
- Sep 16Pursuant to the provisions of H. Res. 1530, Mr. McCaul called up the Senate amendments to H.R. 5334.
- Vote recorded On Motion to Concur in the Senate Amendments. Result: Passed.House
- Sep 16Mr. McCaul moved that the House agree to the Senate amendments.
- Sep 16DEBATE - Pursuant to the provisions of H. Res. 1530, the House proceeded with one hour of debate on motion to agree to the Senate amendments to H.R. 5334.
- Sep 16The previous question was ordered pursuant to the rule.
- Sep 16POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 5334, the Chair put the question on agreeing to the Senate amendments and by voice vote, announced the ayes had prevailed. Mr. Meeks demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
- Sep 16Resolving differences -- House actions: On motion that the House agree to the Senate amendments Agreed to by the Yeas and Nays: 262 - 159 (Roll no. 308).
- Sep 16On motion that the House agree to the Senate amendments Agreed to by the Yeas and Nays: 262 - 159 (Roll no. 308).
- Sep 16Motion to reconsider laid on the table Agreed to without objection.
- Aug 10Message on Senate action sent to the House.
- Aug 7Considered by Senate. (consideration: CR S4538-4540)
- Vote recorded On Passage of the Bill H.R. 5334. Result: Bill Passed.Senate
- Aug 7Passed/agreed to in Senate: Passed Senate with an amendment and an amendment to the Title by Yea-Nay Vote. 86 - 11. Record Vote Number: 224.
- Jul 29Motion to proceed to measure considered in Senate. (CR S4301)
- Vote recorded On the Motion to Proceed H.R. 5334. Result: Motion to Proceed Agreed to.Senate
- Jul 29Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay Vote. 84 - 12. Record Vote Number: 213.Passed Senate
- Jul 29Measure laid before Senate by motion. (consideration: CR S4323)
- Jul 28Cloture on the motion to proceed to the measure invoked in Senate by Yea-Nay Vote. 86 - 12. Record Vote Number: 212. (CR S4292)
- Vote recorded On Cloture on the Motion to Proceed H.R. 5334. Result: Cloture on the Motion to Proceed Agreed to.Senate
- Jul 23Motion to proceed to consideration of measure made in Senate. (CR S4253)
- Jul 23Cloture motion on the motion to proceed to the measure presented in Senate. (CR S4253)
- Jul 14Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 454.
- Jul 13Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
- Apr 28Received in the Senate.
- Apr 27Mr. Smith (MO) moved to suspend the rules and pass the bill, as amended.
- Apr 27Considered under suspension of the rules. (consideration: CR H3111-3113)
- Apr 27DEBATE - The House proceeded with forty minutes of debate on H.R. 5334.
- Apr 27Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H3111-3112)Passed House
- Apr 27Motion to reconsider laid on the table Agreed to without objection.
- Apr 9Reported (Amended) by the Committee on Ways and Means. H. Rept. 119-600.
- Apr 9Placed on the Union Calendar, Calendar No. 520.
- Mar 25Committee Consideration and Mark-up Session Held
- Mar 25Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 43 - 0.
- 2025
- Sep 11Introduced in House
- Sep 11Referred to the House Committee on Ways and Means.Introduced
Foreign PolicyTaxes & BudgetEducation