Georgia’s ruling party moves to broaden definition of foreign grants, including security, EU funding

Georgia’s ruling Georgian Dream party has introduced a set of legislative amendments that would expand the definition and regulation of foreign grants, including those related to defense, security, and European Union-funded programs.

The revised draft of the Law On Grants is scheduled for a second reading in Parliament today, where it will undergo article-by-article discussion.

Under the proposed changes, technical assistance provided by foreign governments or international donor organizations - including the transfer of technology, specialized knowledge, skills, expertise, and other forms of support - will be officially recognized as a form of grant. For the first time, defense and security are explicitly included among the sectors eligible to receive such grants.

The list of eligible donors has also been expanded. The revised version of the draft law includes “other international organizations” as recognized grantors, meaning that funds issued by any international body will now fall within the legal definition of a grant.

Additionally, the legal basis for issuing a grant will be broadened to include not only written agreements between a donor and a recipient, but also unilateral written decisions by a foreign donor.

One notable amendment exempts specific EU programs - namely Horizon Europe and Erasmus+ - from the requirement to obtain government approval prior to accepting a grant. Georgia’s existing legal framework mandates that all grants must receive prior consent from the government or an authorized representative. Grants accepted without such consent are currently prohibited.

The enforcement of the rules remains under the jurisdiction of Georgia’s Anti-Corruption Bureau, which is tasked with monitoring the issuance and receipt of grants to ensure compliance with the law.

Critics have raised concerns that the current law - requiring government consent for grants - could be used to restrict the operations of civil society and international cooperation.