The U.S. will pause more than $95 million in assistance to Georgia, Secretary of State Antony Blinken said on July 31, citing the country's "undemocratic" foreign agents bill.
The move is part of a U.S. government-initiated full review of its relationship with Georgia on May 30, soon after the Georgian parliament passed a controversial bill requiring organizations that receive foreign funding to be labeled as "foreign agents."
The U.S. implemented the first tranche of sanctions against Georgian government officials on June 6, imposing travel restrictions on individuals "responsible for or complicit in undermining democracy in Georgia."
The U.S. on July 5 indefinitely postponed joint military exercises with Georgia.
The Georgian government falsely accused the U.S. of pressuring Georgia "to open a second front against Russia to alleviate pressure on Ukraine," prompting the decision, the Pentagon said at the time.
"The Georgian government's anti-democratic actions and false statements are incompatible with membership norms in the EU and NATO," Blinken said on July 31 in a statement reported by Reuters.
"Washington will continue assistance that benefits the people of the South Caucasus country," he added.
The U.S. move comes weeks after Brussels froze 30 million euros ($32 million) in defense sector funding for Georgia after halting its EU accession process in June.
The EU granted candidate status to Georgia at the end of 2023, but relations with Tbilisi deteriorated after the passing of the foreign agents bill.
The European Council said on June 27 that the law represents a back-sliding on the steps set out for Georgia's candidate status, "de facto leading to a halt of the accession process."