Georgia amends Law on Grants: which funds fall outside new rules
Changes to Georgia’s Law on Grants
New amendments to Georgia’s Law on Grants have been submitted to parliament, under which funds provided by diplomatic missions, consular offices, and international organizations will no longer be classified as grants.
As a result, recipients of such funding will no longer be required to obtain government approval to receive these funds.
“It is advisable to clarify the entity providing the grant and not to consider as grants funds provided by diplomatic missions, consular offices, and international organizations accredited in Georgia, which are spent or may be spent on activities arising from the political or public interests, approaches, or relations of a foreign government or foreign political party, and directly related to the activities of the diplomatic mission itself.
The current version of the law does not apply to these relations anyway; however, to ensure a uniform interpretation of the law, the relevant clarification is considered appropriate,” the explanatory note to the draft law says.
Context
The legislative package approved on March 4, 2026, significantly broadens the definition of a “grant,” covering both financial and non-financial support if it can be used to influence Georgia’s domestic or foreign policy, including activities linked to the interests of a foreign state or political force.
The law also strengthens oversight by the State Audit Service over the issuance and receipt of grants. Funding provided by a foreign legal entity to its branch operating in Georgia without government approval is subject to sanctions, including a fine equal to twice the grant amount.
In addition, violations of the Law on Grants may result in criminal liability, with penalties including fines, community service, or imprisonment of up to six years.
The changes also affect the political process: individuals working in organizations predominantly funded from abroad are banned from membership in political parties for eight years. Restrictions applied to political parties are also extended to entities that are not formally parties but effectively engage in political activity.
The package further tightens administrative liability for private companies if they become involved in public political activity.
One of the most controversial amendments concerns new provisions added to the Criminal Code expanding the concept of “extremism.” Under the new article, public calls for actions against the constitutional order – including calls for disobedience to authorities or the creation of alternative structures – may be punishable.
Moreover, offenses committed on the grounds of non-recognition of constitutional institutions are treated as an aggravating circumstance, increasing the sentence by at least one year.
According to Council of Europe experts, such wording allows for broad interpretation and increases the risk that the law could be used against dissent and critical activity.
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