Officials said the sanctions would target intelligence and government officials and entities involved in solarwind cyber intrusions.
CNN, familiar with another source, states that the administration is expected to take measures against Russia on Thursday and is coordinating with European allies.
The Russian diplomats who are being expelled are based in Washington, DC and New York, and will have 30 days to leave the country, familiar with the plans stated by US officials.
The new financial sanctions will coincide with efforts to target Russian sovereign debt, which could hurt Russia’s economy.
Officials said that it is unclear whether these restrictions would be enough to change Russian behavior.
The White House and State Department did not immediately respond to a request for comment.
This story has been updated with additional reporting.
CNN’s Alex Marquard contributed to this report.