DOJ Indicates Final FARA Rule Is Coming, With Key Changes to Exemptions, Digital Media Labeling, and Compliance Requirements

The Justice Department National Security Division (NSD) has released its entry in the 2026 Unified Agenda of Federal Regulatory and Deregulatory Actions, signaling that NSD intends to move forward with a final rule updating the implementing regulations under the Foreign Agents Registration Act (FARA). The announcement marks a significant milestone, indicating that changes to key exemptions, digital media labeling and compliance requirements are coming, and suggests that the first comprehensive revision of the FARA regulations in decades is now within reach.

Five Years of Anticipation for a New FARA Rule

The anticipated revisions to FARA’s implementing regulations have been years in the making, but over the past 18 months, it has been unclear whether the changes would actually move forward into a final rule.

In December 2021, DOJ published an Advance Notice of Proposed Rulemaking (ANPRM) soliciting comments on potential revisions to FARA’s regulations. Based on public comments, DOJ published a Notice of Proposed Rulemaking (NPRM) in early January 2025. O’Melveny published a client alert about that NPRM detailing the significant changes it contemplated, including changes to key exemptions that companies and individuals most frequently rely on, including (1) the “commercial” exemption, (2) the exemption for persons whose activities do not predominantly serve a foreign interest, and (3) the exemption for persons qualified to practice law. 

It has been unclear whether the rulemaking process would move forward after the Bondi and Blanche Memoranda in early 2025, when the Justice Department directed that its use of the criminal provisions of FARA and FARA’s sister statute—18 U.S.C. § 951—should be limited to “instances of alleged conduct similar to more traditional espionage by foreign government actors,” and directed resources to focus on “civil enforcement, regulatory initiatives, and public guidance.” See O’Melveny 2/7/2025 Client Alert. 

DOJ Breaks Silence on New FARA Rule

According to the August 2026 Unified Agenda entry, NSD has now carefully considered the comments received in response to the NPRM and is considering a final rule that adopts “many—but not all—of the NPRM’s proposals.”

The anticipated final rule is expected to bring several notable changes. Among others, DOJ’s latest announcements indicates that the rule will expand the availability of exemptions commonly relied upon by corporations and law firms, provide requested clarity on labeling requirements for digital media, clarify ambiguities in the existing regulatory framework, update the regulations to keep pace with technological change, and improve civil FARA administration while reducing regulatory burdens on the public. See 91 FR 156. 

Implications for Companies and Individuals with Potential FARA Exposure

While details of the final rule remain to be seen, the signal that DOJ is moving toward finalization suggests that registrants and those relying on FARA exemptions should begin evaluating how the revised regulations may affect their activities.

Companies and individuals with potential FARA exposure—including those engaged in advocacy, lobbying, consulting, public relations, and many other potentially FARA registrable activities that may benefit a foreign principal—should start to consider how these anticipated regulatory changes may impact their obligations and compliance strategies.

Key Takeaways

• A final FARA rule appears to be moving forward. After uncertainty surrounding the rulemaking process, DOJ’s August 2026 statement confirms that NSD is considering a final rule based on its January 2025 proposal and public comments. 
• Not every proposed change will make the cut. NSD says the final rule would adopt “many—but not all” of the proposals contained in the 2025 Notice of Proposed Rulemaking. 
• Commonly used exemptions could become more accessible and other compliance requirements should become more clear. DOJ indicates that the final rule will expand the availability of exemptions frequently relied upon by corporations and law firms (including potentially those affecting commercial activities) and provide much needed clarity about digital media labeling and account for technological developments. 
• Companies and individuals should start assessing their FARA exposure now. Businesses and individuals involved in advocacy, lobbying, consulting, public relations, and similar activities benefiting foreign principals should consider how the anticipated changes could affect their registration obligations and compliance programs.

This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Jim Bowman, an O’Melveny partner licensed to practice law in California; David N. Kelley, an O’Melveny partner licensed to practice law in Connecticut and New York; Greta L. Nightingale, an O’Melveny partner licensed to practice law in the District of Columbia; Steven J. Olson, an O'Melveny partner licensed to practice law in California; Mark A. Racanelli, an O’Melveny partner licensed to practice law in New York; David J. Ribner, an O’Melveny partner licensed to practice law in the District of Columbia and New York; and Jared R. Ginsburg, an O’Melveny counsel licensed to practice law in California, contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.

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