On 28 January, following a meeting of the parliamentary majority of Georgian Dream, it was announced that the party intends to initiate a new legislative package during the spring session. The package will include amendments to the Law on Grants, the Criminal Code, the Code of Administrative Offences, and the Law on Political Associations of Citizens.
Based on information presented at a public briefing, the proposed amendments aim to strengthen state control over foreign funding and would significantly restrict the activities of civil society, political actors, media organizations, and the business sector.
Amendments to the Law on Grants
The proposed amendments substantially broaden the definition of a grant. Nearly any monetary or in-kind resource that is used, or may be used, to influence Georgia’s domestic politics, state institutions, or public processes would fall under this definition, including activities linked to foreign political interests or relationships. Receiving such grants would require prior approval from the Government of Georgia.
The draft law also introduces a category of foreign legal entities whose activities are deemed to involve issues related to Georgia. These entities, including branches and representative offices of non-resident organizations, would be permitted to receive funding only with prior government consent. Receiving grants without approval would trigger criminal liability for legal entities and administrative fines for branches and representative offices amounting to twice the value of the grant.
The amendments also cover technical assistance: the provision of knowledge, expertise, consulting, or technology – whether paid or unpaid – financed from foreign sources would be treated as a grant and subject to government approval. This regulation would also apply to the engagement of foreign experts.
In addition, the changes would apply retroactively to grants already received but not yet used. Grant recipients would be required to seek government approval within one month; until approval is granted, the use of such grants would be prohibited, and failure to comply would result in criminal liability.
Amendments to the Criminal Code
The scope of criminal liability is significantly expanded. A new criminal offence is introduced for violations of the Law on Grants, including unlawful cooperation with foreign organizations or foreign individuals. Violations would be punishable by a fine, community service, or imprisonment of up to six years.
The offence of money laundering is further aggravated where the conduct is linked to influencing political issues related to Georgia, carrying a penalty of nine to twelve years’ imprisonment.
Criminal liability is also introduced for political party leaders in cases involving the receipt of foreign funding, as well as for so-called external lobbying, punishable by imprisonment of up to six years or community service.
Amendments to the Law on Political Associations of Citizens
Political party membership would be prohibited for eight years for individuals employed by organizations whose annual income includes more than 20% foreign funding. The draft law defines both “foreign power” and “organizations carrying foreign interests,” including non-profit organizations and media outlets whose non-commercial income exceeds 20% from foreign sources. As a result, a large number of individuals employed in civil society and the media would effectively be excluded from political party membership.
The State Audit Office would be granted authority to monitor the financial activities of political party members, including access to the accounts of ordinary members. The amendments would also apply to individuals deemed by the authorities to have declared political objectives, regardless of formal party affiliation, potentially bringing a wide range of civil activists under these regulations.
Amendments to the Code of Administrative Offences
A new administrative offence is introduced for business entities engaging in public political activities unrelated to their core commercial activities. Violations would result in fines of GEL 20,000, increasing to GEL 40,000 in cases of repeated offences. The definition of political activity under the draft law is broad and may encompass virtually any form of civic action or criticism of public authorities, creating a risk that lawful civic engagement could be subject to legal restrictions.
Overall, the broad and vague expansion of the concept of a grant, the requirement for prior government approval, the tightening of criminal and administrative sanctions, and the application of these rules to broadly defined groups create a legal framework that grants the state wide discretion. These changes would significantly restrict civic space and undermine freedom of expression, association, political participation, and civic engagement, in tension with constitutional guarantees and international human rights standards.
The proposed legislation continues a broader pattern of restrictive laws introduced by Georgian Dream over the past two years, which have been widely criticized by local and international experts as measures targeting media freedom, civil society, and activism.
