The legislation would give Congress the power to review a nuclear deal with Iran for 30 days and bar Obama from lifting any Congressional sanctions against Iran during that period, Xinhua reported.
If lawmakers disapprove of the deal, and then override a likely veto from Obama, his administration would lose the current power to waive certain economic sanctions Congress has imposed on Iran.
World powers are negotiating with Iran on a comprehensive nuclear deal that would lift economic sanctions on Iran in exchange for limits on its nuclear programme. The two sides reached a framework agreement in April, and are seeking to finish a final deal by June 30. [Not in our national interest to have conflict with Iran: Obama]
On Friday, Obama reiterated that Iran must not be allowed to get a nuclear weapon, adding that he would not "accept a bad deal".
"This deal will have my name on it, so nobody has a bigger personal stake in making sure that it delivers on its promise," Obama said at a Jewish congregation in Washington.