Russell, whose films include "I Heart Huckabees" and "Three Kings," is also in line to direct the film.
Kristin Gore is the daughter of former U.S. vice president Al Gore. She has previously worked on the TV show "Futurama" and the film "Arctic Tale."
Biel most recently starred in "Next," "I Now Pronounce You Chuck and Larry" and "The Illusionist." She will next be seen in the film "Powder Blue."
In "Nailed," Biel would play an uninsured, small-town receptionist accidentally shot in the head with a nail by a inept workman, prompting her to head to Washington to fight for the rights of the strangely injured, the Hollywood Reporter said.
Gyllenhaal, star of "Zodiac" and "Brokeback Mountain," would play an opportunistic congressman who capitalizes on her crusade.
Principal photography is slated to start in January, the trade paper said.
2014: The Year in Fashion [PHOTOS]