DOJ Poised to Expand FARA Commercial, Legal Exemptions
Contrary to a 2025 proposal that would have tightened registration requirements, the DOJ now indicates a final rule will "expand the availability of exemptions."
The Department of Justice has signaled an unexpected reversal in its approach to rulemaking under the Foreign Agents Registration Act (FARA). A January 2025 Notice of Proposed Rulemaking had proposed to narrow key exemptions, but a recent entry in the government’s Unified Agenda indicates the DOJ’s National Security Division is now considering a final rule that will "expand the availability of exemptions commonly relied upon by corporations and law firms."
This potential shift could have significant consequences for entities representing foreign interests. The final rule is expected to address the commercial exemption, potentially walking back a proposal that would have made it harder for U.S. subsidiaries of foreign companies to lobby without registering. It may also affect the domestic activity exemption, relied on by many nonprofits, and the legal exemption for lawyers representing foreign clients. While this development suggests a more favorable regulatory environment than anticipated, the final text is not yet public and no timeline has been announced. Counsel should monitor for the final rule to advise clients on the updated compliance landscape.