Lindsey O. Graham Sanctioning Russia and Iran Act of 2026

It sharply limits Russia’s access to U.S. capital, markets, and trade while pressuring countries that buy Russian energy or enable sanctions evasion. It also lowers eligible educators’ taxable income by broadening an existing deduction.

What the law does ​

• Requires sanctions on specified Russian officials, banks, vessels, entities, and supporters of Russia’s military, energy trade, attacks on Ukraine, or sanctions evasion.
• Restricts U.S. investment in Russia, dealings with specified Russian banks and debt, Russian securities trading, energy exports to Russia, and Russian uranium imports.
• Allows tariffs of up to 500 percent on Russian goods and up to 100 percent on goods from certain major Russian energy buyers or sanctions-evasion facilitators.
• Blocks covered property under U.S. control, denies covered individuals visas or entry, and penalizes violations, subject to specified exceptions and waivers.
• Generally ties termination of Russia-related measures to a Ukraine-approved peace agreement, an end to hostilities and subversion, and congressional review.
• Extends the Iran Sanctions Act through 2031 and makes the remaining sanctions division expire five years after enactment.
• Expands the educator expense tax deduction to eligible early-childhood educators for qualifying expenses in tax years beginning after December 31, 2025.

Who it affects ​

• Russian officials, banks, state-linked entities, military and energy supporters, sanctions evaders, vessels, and covered individuals.
• U.S. investors, financial institutions, securities markets, importers, exporters, and businesses dealing with Russia.
• Countries and businesses that purchase substantial Russian oil or natural gas or facilitate Russian oil sanctions evasion.
• Eligible teachers at publicly funded or fee- or grant-supported nonprofit and for-profit early-childhood facilities serving more than two nonresident children under age six.

Breakdown ​

DIVISION A, LINDSEY O. GRAHAM SANCTIONING RUSSIA AND IRAN ACT OF 2026 ​

This division creates a broad sanctions and trade program aimed at Russia, its government, military, financial institutions, state-linked entities, energy sector, sanctions evaders, and supporters of the war against Ukraine. It restricts U.S. investment and financial dealings involving Russia, blocks certain property and entry into the United States, limits Russian access to U.S. markets, and raises tariffs on Russian goods and goods from certain countries that buy Russian energy or facilitate sanctions evasion. It also extends the Iran Sanctions Act through 2031, while the rest of the division expires five years after enactment.

Key takeaways

• The President must sanction specified Russian officials and other people, entities, vessels, and financial institutions that support Russia’s military, energy trade, harmful activities against Ukraine, or sanctions evasion.
• The division prohibits or restricts U.S. investment in Russia, transactions with specified Russian banks, purchases of Russian government debt, Russian securities trading on U.S. exchanges, energy exports to Russia, and imports of Russian uranium.
• The President may impose tariffs of up to 500 percent on Russian goods and tariffs of up to 100 percent on goods from certain major purchasers of Russian oil or natural gas and countries facilitating Russian oil sanctions evasion.
• The sanctions generally include blocking property under U.S. control and denying visas or entry to covered individuals, with penalties for violations.
• Exceptions cover humanitarian aid, authorized U.S. intelligence and law enforcement activities, official government and United Nations business, certain nuclear and space activities, non-Russian oil transiting Russia, vessel and crew safety, licensed transactions, and a temporary period for winding down operations.
• The President may waive measures in the national interest with notice to Congress, but generally may terminate Russia-related measures only after Russia accepts a peace agreement approved by Ukraine and ends hostilities and efforts to subvert Ukraine, subject to congressional review.

DIVISION B, SUPPORTING EARLY-CHILDHOOD EDUCATORS’ DEDUCTIONS ​

This division expands the federal educator expense tax deduction to include qualifying early-childhood educators. The change applies to eligible expenses paid or incurred in tax years beginning after December 31, 2025.

Key takeaways

• Early-childhood teachers may claim the educator expense deduction if they otherwise meet the deduction’s requirements.
• A qualifying early-childhood school or childcare facility must serve more than two children under age six who do not live at the facility.
• The facility must be publicly funded or receive fees, payments, or grants for providing education or childcare services.
• Both nonprofit and for-profit early-childhood facilities may qualify.
• The expanded deduction applies to expenses paid or incurred in tax years beginning after December 31, 2025.