Sanctions have also been announced against nine entities and individuals including the GRU and FSB Russian intelligence agencies.
The US Department of Treasury said that the move targets those responsible for “undermining election processes or institutions”.
In a statement President Barack Obama said “all Americans should be alarmed by Russia’s actions”.
He called them a “necessary and appropriate response to efforts to harm US interests”, adding it would not be “the sum total of our response to Russia’s aggressive activities”.
Mr Obama also announced the US will declassify technical information related to Russian cyber activity to “help network defenders in the United States and abroad identify, detect, and disrupt Russia’s global campaign of malicious cyber activities”.
Speaker of the House Paul Ryan, the top Republican in Congress, said in a statement that despite the measures being overdue “it is an appropriate way to end eight years of failed policy with Russia.
Congressman Ryan added “it serves as a prime example of this administration’s ineffective foreign policy that has left America weaker in the eyes of the world”.
Democratic Senator Ben Cardin, who is from Maryland, applauded the sanctions but called them insufficient.
He called for Congress to take action separately from the White House, and plans to introduce legislation to establish a committee “to further examine the attack and Russian’s efforts to interfere in our election”.