The Georgian Dream (GD) Parliament is preparing to approve new and restrictive legislative amendments that will require prior approval from the Georgian government for any grants from foreign donors. The amendments would further restrict access to funding for civil society, forcing organisations to align to the GD government’s priorities, or face fines.
Grants unauthorised by GD government will be deemed illegal
On April 7, the GD Parliament presented upcoming amendments to the Law on Grants, which the party intends to adopt through an expedited process expected to last about a week. The law would then come into effect immediately upon publication. If approved, the amendments would render any donor funding to organisations illegal without prior consent from the government. The draft law stipulates that receiving an unauthorised grant will result in a draconian fine equal to twice the amount of the grant. The authority to determine the 'legality' of issuing and receiving grants would lie with the Anti-Corruption Bureau, which would be empowered to request any type of information—including sensitive personal data—and to summon or interrogate citizens. Notably, the same Bureau is also responsible for enforcing the Georgian version of the Foreign Agents Registration Act, further tightening restrictions on civil society organisations (CSOs).
It is important to note that the proposed changes will not apply to grants issued by sports federations, educational scholarships, or grants received by international organisations operating in Georgia. This exception clearly indicates that the primary target of the amendments is a wide range of CSOs operating on country-level.
A serious violation of people’s freedom of association
This initiative represents a continuation of the ruling party’s ongoing policy aimed at severely restricting the enabling environment for the civil sector. This trajectory has already been clearly demonstrated through the adoption of measures such as the Foreign Agents Registration Act, the prohibition of foreign funding for broadcasters, the elimination of mandatory civil society participation in public decision-making processes, and others.
Given that the primary source of funding for CSOs in Georgia is grants from foreign donors, the proposed changes would effectively place their ability to operate under the control of the Georgian Dream government. In this context, it is anticipated that the GD government will withhold approval for grants that do not align with its interests—particularly those supporting human rights advocacy, judicial reform, independent media, the protection of vulnerable groups, and other critical areas. The amendments would thus further erode fundamental rights in the country, including freedom of expression, peaceful assembly, and press freedom. Moreover, they constitute a serious violation of the right to freedom of association by making the ability of organisations to receive grants for their statutory activities contingent upon the approval of the GD government. According to the 2023 report of the UN Special Rapporteur on the Rights to Freedom of Peaceful Assembly and of Association, requiring government approval to receive funding violates ‘article 22 of the International Covenant on Civil and Political Rights and other human rights instruments, including the International Covenant on Economic, Social and Cultural Rights’.
The report, also clearly recommends that states repeal laws and regulatory measures that unduly restrict foreign funding, including, measures: that impose prior authorization, registration, or licensing requirements to receive funding or carry out fundraising activities, domestic or foreign; and are requiring additional burdensome and overly intrusive reporting or public disclosure obligations from CSOs seeking to access or use foreign funds.
Lack of resources endangers crucial pro-democratic activities
If the proposed changes are approved, access to funding for organisations already operating under challenging conditions is expected to become even more limited. Given that the majority of Georgian CSOs rely on grants from foreign donors, many will be unable to continue their work. The situation is further exacerbated by the suspension of USAID programs in the country, posing yet another significant obstacle for local organisations. Without adequate funding, critical activities—such as monitoring the actions of the Georgian Dream government, advocating for human rights, and observing elections—will be severely hindered.
In response to the upcoming amendments, Georgian CSOs issued a joint statement asserting that the true aim of the adopted changes is to isolate citizens, leaving them to confront the ruling party’s punitive system without support, while simultaneously blocking assistance from the international community. Civil society organisations have condemned the legislative initiative, referring to it as an “Act of Persecution of the Georgian People”.
Despite this, it is expected that the Georgian Dream Parliament will approve and fast-track the adoption of the proposed changes.
In light of the current challenges, it is essential for CSOs to proactively identify and adopt sustainable funding models that will ensure the continuity of their work and safeguard them against the risk of dissolution.