The 72-year-old American, whose last major title came at age 46 when he won his record sixth Masters, was honored for both his golf and humanitarian work.
The Nicklaus Children's Health Care Foundation has raised more than $12 million for pediatric health care projects.
US Senate members will now vote upon the measure in order for Nicklaus, nicknamed the "Golden Bear", to receive the Gold Medal.
Fellow US golf icon Arnold Palmer, 82, was awarded the gold medal by lawmakers in 2009. Nicklaus and Palmer joined retired South African star Gary Player as honorary starters at the 76th Masters earlier this month.
The award from US lawmakers goes to athletes, artists, public servants and military leaders. Japanese-American World War II veterans were the most recent to receive the award in 2010.