Additional Context: The law defines a foreign agent as any person or entity that “responds to the interests of, or is controlled or financed, directly or indirectly, by a foreign principal.” It defines a “foreign principal” broadly as any person or entity based abroad, including foreign governments, political parties, or organizations, as well as “people determined by the Foreign Agents Registry to fall under this category.” Those who fail to register face sanctions, including fines and the “suspension or cancellation” of their legal status. The law also imposes a 30% tax on all foreign funding, including donations, goods, and services.

Devex Researcher Note: In conversation with The Aid Report, a leading human rights organization in Central America emphasized the connection that the passage of this law had with cuts to U.S. foreign assistance. A representative of the organization stated that without civil society and media assistance, the government felt emboldened to move forward with this law.

Source: Human Rights Watch