Georgia’s Parliament is set to adopt amendments to the Law on Grants that will exempt certain entities from compliance requirements, including the need for government approval in specific cases.
Under the revised draft, the provisions of the Law on Grants will no longer apply to grants issued by the Georgian Red Cross Society. In addition, grants issued by financial and credit institutions will not require a formal agreement with the Government of Georgia.
The amendments, which are being reviewed in expedited second and third readings, were refined during discussions in the Parliamentary Committee on Legal Issues. Committee Chairman Archil Gorduladze presented the updated version, emphasizing the need for clearer legal interpretation rather than a substantive policy shift.
Gorduladze claimed that the exemption for the Georgian Red Cross Society reflects an already implicit understanding in existing legislation. “For greater clarity, it should be explicitly stated that the Law on Grants does not apply to this organization,” he noted, referring to the Society’s status as part of the international Red Cross and Red Crescent Movement.
The draft law also introduces a similar clarification for financial and credit institutions. In practice, this applies to grants issued alongside loan agreements by international financial organizations such as the World Bank. Gorduladze explained that such grants are already subject to separate government procedures and are not linked to political activities, minimizing any potential risks to state sovereignty.
The Law on Grants already exempts several international educational and research programs from its requirements, including the European Union’s Horizon Europe and Erasmus+ initiatives, the German Academic Exchange Service (DAAD), and the EU’s Creative Europe program. These programs support general education, higher education, and scientific research.
With the proposed changes, the Georgian Red Cross Society and financial and credit institutions will be added to this list of exempt entities.
The amendments also redefine what qualifies as a grant. Funds provided by diplomatic missions, consular offices, and representatives of international organizations accredited in Georgia will no longer be classified as grants if they are used—or could be used—for activities tied to the political or public interests of a foreign government or political party.
The legislative package is expected to pass swiftly, marking another step in the government’s ongoing effort to refine the regulatory framework governing foreign funding and grant distribution in Georgia.
