The bipartisan Honor Act eliminates tax breaks for companies doing business with Russia, passing the Senate unanimously as lawmakers seek to cut financial ties with Moscow over its support for Iranian aggression against US forces.
The US Senate unanimously approved the Honor Act (S.327) during the week of 9 March 2026. The legislation prevents American companies from claiming foreign tax credits or deductions on taxes paid to Russia.
Introduced by Senators Catherine Cortez Masto and John Cornyn, both Finance Committee members, the bill aims to discourage businesses from financially supporting Russia.
Cortez Masto emphasised the measure makes sense given Russia’s assistance to Iran in targeting American military personnel. Cornyn argued that companies operating in Russia are effectively funding Putin’s government and should lose these tax subsidies.
While the legislation may gain bipartisan backing in the House of Representatives, lawmakers will first need to examine whether the Senate bill complies with the Constitution’s origination clause. They may either proceed with the Senate version or draft their own legislation.
