Congress is considering several bills to broaden disclosure and registration requirements related to the regulation of foreign agents under the Foreign Agents Registration Act (“FARA”) and the Lobbying Disclosure Act (“LDA”): the Foreign Registration Obligations for Nonprofit Transparency (“FRONT”) Act (S. 2305), Disclosing Foreign Influence in Lobbying Act (S. 856 / H.R. 1883) and the Lobbying Disclosure Improvement Act (S. 865 / H.R. 1887). Additionally, multiple proposed amendments to the FY 2026 National Defense Authorization Act (NDAA) would increase certain disclosure obligations. Together, these legislative proposals indicate continued lawmaker interest in regulating foreign influence in the United States.
FARA Registration Reform Regarding Nonprofits
The FRONT Act, introduced in the Senate in July, would amend the definition of a “foreign principal” under FARA to include nonprofit groups—including 501(c)(3), (c)(4), (c)(5), and (c)(6) entities—that receive money or “any other thing of value” from any national or public or private entity of China, North Korea, Russia, Iran, Cuba, Venezuela, or other countries deemed “of concern” by the Secretary of State. Such nonprofits would have to register under FARA and report the nature of their existing and proposed activities directly or indirectly resulting from the funds received.
As currently drafted, the bill would appear to require registration by nonprofits that receive even de minimis funding from a person or entity from a country of concern. This requirement may require nonprofits, including major international charities that receive donations from individuals across the globe, to conduct more careful due diligence on their receipts for these purposes. The text of the bill appears to include in the definition of an “agent of a foreign principal” nonprofits that merely accept covered foreign funds regardless of whether the funds are used for activities otherwise covered by the statute. It is unclear whether Congress intends such a broad application.
Notably, the bill would also prevent such nonprofits from relying on the Lobbying Disclosure Act (“LDA”) exemption to FARA. While other exemptions to FARA may still apply, there are few exemptions that clearly apply to nonprofit and charitable political activity. In recent advisory opinions and a Notice of Proposed Rulemaking (“NRPM”), DOJ indicated that nonprofits could rely on the § 613(d)(2) exemption that applies to commercial activity under existing DOJ regulations. Given the uncertainty of the NPRM’s status and DOJ’s current lack of clear guidance on this topic, however, many nonprofits may have concerns about reliance on the (d)(2) exemption. As a result, the proposed legislative change could significantly impact nonprofits that receive funding from persons and organizations in covered countries, given the proposed expansion of the definition of agency and uncertainty regarding certain exemptions.
The FRONT Act is sponsored by Ted Budd (R-NC), Jim Justice (R-WV), Pete Ricketts (R-NE), and Josh Hawley (R-MO).
FARA-Related Lobbying Disclosure Bills
Senators Chuck Grassley (R-IA) and Gary Peters (D-MI) are championing legislation to modify federal lobbying disclosures related to agents of foreign principals. The two bills—the Lobbying Disclosure Improvement Act and the Disclosing Foreign Influence in Lobbying Act—unanimously passed the Senate Homeland Security and Government Affairs Committee on July 30.
First, as we reported previously, the Disclosing Foreign Influence in Lobbying Act would broaden registered lobbyists’ required disclosures to include any foreign government entities or political parties that merely “participate[] in the direction, planning, supervision, or control of any lobbying activities of the registrant,” regardless of whether those entities finance the lobbying activities.
Second, the Lobbying Disclosure Improvement Act relates to the LDA exemption to FARA. That exemption is currently available to many agents of nongovernmental foreign principals, who would otherwise have to register as foreign agents under FARA, provided that they instead register under the LDA. 22 U.S.C. § 613(h). The legislation would require all LDA registrants to indicate whether they are registering under the LDA to satisfy their FARA obligation. As we noted previously, there are substantial ambiguities regarding this law that may apply to lobbyists whose FARA reporting obligations would, but for the LDA exemption, be uncertain. For example, the bill does not address how current registrants should handle the new requirement if they are likely never to be in a position to file another registration statement. The bill also does not address filers who initially file under the LDA because they have crossed LDA registration thresholds, but later engage in FARA-registrable activities and take advantage of the LDA exemption based on their existing LDA registration. The bill would also require all registered lobbyists to take a public position over whether or not they have triggered FARA registration, even though it is often unclear whether FARA registration is required, given the nebulous FARA statute and guidance.
Both bills passed the Senate in the 117th and 118th Congresses in substantially identical forms, but they have historically struggled to gain traction in the House. Still, teams of bipartisan lawmakers are working to move the legislation in the lower chamber: Reps. Mariannette Miller-Meeks (R-IA) and Raja Krishnamoorthi (D-IL) are sponsoring the Disclosing Foreign Influence in Lobbying Act, while Reps. Joe Neguse (D-CO) and Chip Roy (R-TX) introduced the Lobbying Disclosure Improvement Act.
NDAA Amendments
The NDAA includes two proposed amendments related to regulation of foreign agents; because the NDAA is “must-pass” legislation, these provisions may have the strongest chance of enactment in the near term.
Senate Amendment 3661, also known as the PAID OFF Act, is a bipartisan proposal to make the LDA and commercial activity exemptions to FARA registration unavailable to agents of a foreign principal that is “acting in the interests of” a “country of concern.” The amendment would authorize the Secretary of State, in consultation with the Attorney General, to propose amendments to the definition of “country of concern” to congressional committees of jurisdiction; the current list is China, Russia, Iran, North Korea, and Cuba.
A separate proposal, Senate Amendment 3454, would amend FARA’s informational materials requirement. Currently, the statute requires registrants to label so-called “informational materials” with a conspicuous statement and file the materials within 48 hours of dissemination. 22 U.S.C. § 614(b). Notably, the term “informational materials” is not currently defined in the statute or regulations, although there is a list of document types that can be considered informational materials. The amendment would define “informational material” as any material that the person disseminating it believes, has reason to believe, or intends will influence the U.S. government or a section of the U.S. public regarding U.S. policy or the political or public interests of a foreign government. The amendment would also require that the disclaimer on informational materials include the name of the foreign country where the foreign principal is located. Finally, the amendment would require registrants to include a statement that the person is registered under FARA on any informational materials provided to U.S. government officials or requests for advice of U.S. government officials.
These changes regarding informational materials are similar to what the Department of Justice proposed in its January 2, 2025, notice of proposed rulemaking, although the NDAA amendment language does not address details regarding the manner of dissemination, unlike the proposed rules. Specifically, the NDAA amendment does not provide details regarding the placement and font size requirements of the conspicuous statement for online content, which has been a significant source of confusion for the regulated community.
While it is difficult to predict whether any of these provisions will become law, these proposals signal continued lawmaker interest in the regulation of foreign agents. The federal legislative efforts track similar efforts among state legislatures, many of which have passed baby FARA bills this year, targeting agents of persons from specific countries of concern. Covington provides clients with advice regarding adopting practices, policies, and internal reviews to mitigate potential legal and optics risks associated with these federal and state FARA laws.