119-S-327 Journalist Public Summary

Public Summary — S. 327 (HONOR Act)

Headline Summary: A bipartisan bill to prevent U.S. taxpayers from writing off taxes paid to Russia has passed the Senate and would last until normal U.S.–Russia trade terms resume. (democrats.senate.gov)

What It Does: The HONOR Act would bar U.S. individuals and companies from claiming either a foreign tax credit or a tax deduction for income taxes paid to the Russian government. The ban would start 30 days after the bill becomes law (for credits) and 90 days after (for deductions), and it would remain in place until the U.S. restores “normal” tariff rates for Russian goods under the 2022 Suspending Normal Trade Relations with Russia and Belarus Act. The bill also says these rules apply regardless of any existing tax treaty. (congress.gov)

• Who’s For It: The Senate cleared the bill by unanimous consent on March 10, 2026, signaling broad bipartisan support. (democrats.senate.gov)
• Supporters, including sponsor Sen. Catherine Cortez Masto, say it closes a loophole so U.S. tax benefits don’t indirectly subsidize the Kremlin’s revenues. (cortezmasto.senate.gov)

• Who’s Against It: No formal Senate opposition was recorded during passage. (democrats.senate.gov)
• Critics of measures like this often warn about double taxation for remaining U.S. firms in Russia because the foreign tax credit normally exists to mitigate that risk. (law.cornell.edu)
• Some tax experts may also object to overriding tax treaties as a precedent, since the bill applies “without regard to any treaty obligation.” (congress.gov)

What’s Next: As of March 16, 2026, the bill is in the House and awaiting action; if the House passes it, it would go to President Trump for signature. If enacted, the no-credit rule would take effect 30 days after enactment and the no-deduction rule 90 days after enactment.