US Suspends $95 Million in Aid to Georgia Over 'Foreign Influence' Law

US Secretary of State Antony Blinken announced on Wednesday, July 31, that a $95 million aid program to Georgia had been suspended.

This decision followed a comprehensive review of bilateral cooperation initiated on May 23, prompted by Georgia's adoption of the law on "foreign agents."

"After the Georgian government's anti-democratic actions, I announced a comprehensive review of bilateral cooperation between the United States and Georgia. As a result of that review, the United States is pausing more than $95 million in assistance that directly benefits the Government of Georgia," the announcement on the State Department's website stated.

Blinken said that while aid directly benefiting the Georgian government will be paused, the US will continue to support programs and activities that benefit the Georgian people.

He added that over the past 32 years, the US has provided more than $6.2 billion in aid to Georgia.

"We will continue to support the Georgian people and their Euro-Atlantic aspirations," Blinken affirmed.

The US's decision followed the adoption of the law “On Transparency of Foreign Influence” by the Georgian Parliament.

The law, which critics say is modelled on Russian legislation used to stifle dissent, has triggered weeks of daily protests in Tbilisi and condemnation from Georgia's Western partners.

Despite massive protests and the President's veto, the Georgian parliament passed forward the law, which deviates from the Commission’s recommendations for candidate status.

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The new law requires NGOs and media, which receive over 20 percent of their funding from abroad, to register as “organizations promoting foreign interests” and to submit annual financial reports, which will be made public.

If they fail to register or submit these reports, they will face a fine of 25,000 lari (approximately $9,400).

When the law is enacted, the Ministry of Justice would have the authority to conduct monitoring at any time to ensure compliance, including accessing necessary information and personal data.

Due to the controversial law adoption, not only the US aid program but also Georgia’s EU accession process had been suspended.

“EU leaders don't understand the intentions of the current Georgian authorities,” EU Ambassador to Georgia Pavel Gerchinsky said on July 9.

The EU granted Georgia candidate status on Dec. 14, 2023, while starting negotiations with Ukraine and Moldova.

“The European Council calls on the Georgian authorities to clarify their intentions and reverse the current course of action, which jeopardizes Georgia's path to the EU, de facto halting the accession process,” the decision says.