FARA Enforcement Gets a Major Shake-Up Under New Presidential Directive
By: Kellen Dwyer and Joseph T. Burns
On September 25, 2025, President Donald J. Trump issued National Security Presidential Memorandum 7 (NSPM‑7), a memorandum entitled “Countering Domestic Terrorism and Organized Political Violence.” While the memorandum broadly addresses domestic political violence, it also explicitly orders investigations into potential violations of the Foreign Agents Registration Act (FARA), signaling a major shift in enforcement priorities. This change may affect a wide range of organizations and individuals with ties to foreign entities.
Enacted in 1938, FARA requires individuals and organizations acting as agents of foreign entities to register with the Department of Justice and disclose activities intended to influence American policy or public opinion. Historically, FARA enforcement has been sporadic, with the DOJ exercising discretion in determining when to pursue criminal or civil actions. Earlier this year, newly confirmed Attorney General Pam Bondi issued guidance narrowing criminal enforcement of certain FARA violations, emphasizing civil compliance over prosecution for less serious infractions. The new DOJ policy reduced the risk of criminal charges for many entities that might have previously faced investigation, creating a period of relative regulatory calm.
NSPM‑7 establishes a coordinated national strategy, directed at the National Joint Terrorism Task Force (JTTF) and other federal agencies, to investigate and disrupt networks and entities involved in domestic political violence and intimidation. The memorandum identifies certain foreign-linked funding and organizational support as potential triggers for investigation, explicitly referencing FARA compliance.
Among other provisions, the NSPM‑7 requires the following:
- the investigation of individuals and entities that may be acting on behalf of foreign principals or receiving foreign funds in a manner that could violate FARA;
- a prioritization of the prosecution of federal crimes arising from these activities; and
- the coordination by federal agencies, including the Treasury Department and Internal Revenue Service, to trace funding flows tied to political organizations and assess whether foreign influence is being exerted in violation of federal law.
Although NSPM‑7 does not amend the FARA statute, it represents a high-level directive to prioritize investigation and enforcement, altering, to some degree, Department of Justice guidance from earlier this year. Practitioners should note that this signals the potential for a far more active enforcement environment, particularly for organizations that receive foreign funding or engage in lobbying, public relations, or other forms of advocacy on behalf of foreign entities.
President Trump’s memorandum underscores the importance of understanding the scope of FARA exposure. Organizations and individuals should be aware of several enforcement risks.
First, while the DOJ historically favored civil enforcement in less serious cases, NSPM‑7 signals a willingness to consider criminal prosecution where activities intersect with foreign influence or funding tied to political violence. Even if the threshold for prosecution remains high, the Justice Department may initiate investigations that could lead to subpoenas, production of records, and increased scrutiny.
Next, the memorandum emphasizes tracking foreign financial flows that support U.S. political activities. Entities receiving donations, grants, or consulting fees from foreign sources may face heightened reporting obligations or scrutiny. Failing to register under FARA when required can lead to both civil penalties and potential criminal liability.
Enforcement may involve multiple federal agencies, including the Treasury Department, Justice Department, and IRS. This increases the likelihood that financial transactions, institutional reporting, and organizational structure will be examined in detail, and that noncompliance—even if unintentional—could trigger more extensive inquiries.
Finally, some states have enacted what have been characterized as “baby FARA” laws that require disclosure of foreign-influenced activity. While NSPM‑7 only applies to the federal government, organizations need to determine whether or not their activities will require certain state-level reports and disclosures.
Given the increased enforcement focus signaled by NSPM‑7, organizations and individuals operating in the political or advocacy space should consider the following actions:
- conduct a comprehensive review to determine if past or ongoing activities could constitute acting on behalf of a foreign entity, including lobbying, public relations campaigns, or outreach that has been funded by foreign entities;
- seek guidance from attorneys experienced in FARA compliance to evaluate registration and disclosure requirements and potential enforcement risks;
- implement robust internal compliance protocols to ensure accurate registration and timely reporting under FARA as well as any similar state laws; and
- stay informed of Department of Justice enforcement priorities and regulatory guidance as well as any new state-level reporting and disclosure obligations.
NSPM‑7 represents a notable development in the enforcement landscape surrounding FARA. While FARA itself remains unchanged, President Trump’s memorandum signals a renewed federal focus on organizations and individuals receiving foreign funding or acting on behalf of foreign entities, particularly where such activity may intersect with political violence. Entities in this space should take proactive steps to assess their compliance, mitigate risk, and prepare for scrutiny by federal authorities. Through consultation with qualified and experienced counsel, organizations and funders can navigate the evolving FARA landscape and ensure that all applicable statutory and regulatory obligations are met.
