The Senate voted 98-2 followed by House with 419-3 vote in favor of the Russian Federation sanctions bill which aimed at punishing Moscow over its alleged interference in the USA elections in 2016.
The Senate backed the measure, which also imposes sanctions on Iran and North Korea, by a margin of 98-2 with strong support from Trump's fellow Republicans as well as Democrats.
During weeks of negotiations, the Trump administration initially pushed back at what it saw as an attempt to limit the executive branch's ability to unilaterally ease sanctions, making the case that it limits US leverage in attempts to impact Russian behavior and build a better relationship with Russian President Vladimir Putin.
Trump had hoped to improve ties but his administration has been clouded by investigations of Russian meddling in the 2016 USA presidential election to help Trump.
The Russian Foreign Ministry said, in response, it is ordering the U.S. Embassy in Russia to reduce the number of its diplomats by September 1.
The bill threatens to further derail U.S.
The White House has said Trump is still evaluating the bill and supported strong sanctions against Russian Federation.
The bill, which recently passed the House with overwhelming bipartisan support, proposes stricter financial penalties for Russia's involvement "in eastern Ukraine, cyber intrusions and attacks, and human rights violators".
Rejecting the bill would have further galvanized resistance against the President and deepened concerns about possible collusion between the Trump campaign and Russian Federation.
The sanctions are over Russia's 2014 annexation of Crimea and alleged interference in the U.S. election.
Michael McFaul, the USA ambassador to Russian Federation from 2012-2014, said he does not think that Russian Federation will escalate tensions with the United States just yet because Trump's assertions that he wants better relations with Moscow are encouraging Putin to continue seeking some kind of accommodation with the U.S. president.
Trump's concerns include a provision letting Congress stop any effort to ease existing sanctions on Russian Federation.
The legislation, McCain said would impose mandatory sanctions on transactions with the Russian defence or intelligence sectors, including the FSB and the GRU, the Russian military intelligence agency that was primarily responsible for Russia's attack on U.S. election. "I believe that Putin still believes there might be something he can do with Trump".
Olson said Ambassador John Tefft "expressed his strong disappointment and protest" with the move and passed the Russian government's notification to Washington for review.
It said that this would reduce the number of USA diplomats and staff to 455.
"It is a great pity that Russian-American relations are being sacrificed to this domestic, internal American issue", Putin said Thursday, according to CNN."What we are seeing (in the US) is merely anti-Russia hysteria".
Russian officials also slammed the USA sanctions, saying they are motivated by "absolutely imaginary allegations of Russian involvement in their internal matters".