Florida Enhances Regulation of Foreign Countries of Concern and Terrorism Organizations

The 2026 Florida legislative session led to enhanced regulation of "foreign countries of concern" and "designated foreign terrorist organizations" and began regulation of "domestic terrorist organizations."¹ New Florida laws prohibit contracts with and terminate existing agreements and grants with them, as well as prohibit charitable contributions from them.

The legislation gives special attention to schools, student activism and school funding and amends ethics, criminal, surrogacy and adoption law, thereby impacting international and domestic companies and capital.² Cuba received special attention.³

Foreign Countries of Concern

The list of "foreign countries of concern" is by now well known to include the People's Republic of China, Russian Federation, Islamic Republic of Iran, Democratic People's Republic of Korea, Republic of Cuba and Syrian Arab Republic.⁴ They also include "any agency of or any other entity under significant control of such foreign country of concern."⁵

There are many associated limitations, some of which are discussed below, but the most well known is that "foreign principals" associated with them may not acquire, own or have a "controlling interest" in real property, subject to certain exemptions. These same persons who owned property before the limitations became effective must register. A buyer must file an affidavit attesting it is not a prohibited buyer.

Real property acquisition and development besides mergers and acquisitions involving Florida real property are impacted. Last year, the court appeals ruled that challengers were unlikely to succeed on the merits of their claim that the registration and affidavit requirement violates equal protection or the Fair Housing Act or is preempted.⁶ The U.S. Courts of Appeal for the Fifth and Eleventh Circuits ruled that plaintiffs lacked standing to challenge the restrictions on purchase of real property.⁷

Venezuela

In contrast to the nation-states comprising foreign countries of concern," the term also includes the "Venezuelan regime of Nicolás Maduro." Now that Maduro has been captured and extradited to the U.S., the scope of the limitations on organizations with persons domiciled in Venezuela having a controlling interest in an entity and organizations with a principal place of business in Venezuela or subsidiaries of such entities has not yet been fully worked out.

Cuba

A new difference emerged this legislative session. The governor now has the authority to suspend the provisions of any statute or rule restricting interactions with Cuba until sine die of the next legislative session if the federal government changes its diplomatic status.⁸ The governor has a corresponding duty to propose legislative changes in this event.⁹

The governor can react quickly if developments in Cuba and U.S. foreign policy warrant it. Until then, a tax collector or local authority may demand a sworn affidavit from and revoke or refuse to renew a business tax receipt to any individual, business or entity doing business with Cuba in violation of federal law.¹⁰ A false declaration is a crime.¹¹

Agreements and Grants

After this session, agreements between a state agency, political subdivision or public school and a foreign country of concern, its subdivisions or any entity controlled by a foreign country of concern are terminated effective July 1, 2026.¹² Likewise, grants from a foreign country of concern, its subdivisions or any entity controlled by a foreign country of concern are terminated.¹³

Designated Foreign Terrorist Organizations

Florida enacted several limitations parallel to foreign countries of concern on "designated foreign terrorist organizations," defined in Florida law for several years as "an organization designated as a terrorist organization under s. 219 of the Immigration and Nationality Act."¹⁴ A "Chief of Domestic Security" may designate an organization as such, subject to specified due process.¹⁵ A public records exemption protects related records.¹⁶

Charitable Contributions

As an example of a parallel limitation, soliciting or accepting charitable contributions from a designated foreign terrorist organization or "an agent acting on behalf of a designated foreign terrorist organization," is now prohibited.¹⁷ Such an agent is defined as "a person acting on behalf of or otherwise employed or controlled by a foreign government or a designated foreign terrorist organization."¹⁸

Domestic Terrorist Organizations

Florida also enacted certain parallel limitations on "domestic terrorist organizations," defined as "organization[s] whose designation as such has been published in the Florida Administrative Register" by the Chief of Domestic Security because they are based or operate in Florida or the U.S. and engage in terrorist activity that is an ongoing threat to the security of Florida or the U.S.¹⁹

For example, a state agency, political subdivision and public school district may not contract with, accept from or expend funds to support such a domestic or foreign terrorist organization.²⁰ The U.S. Department of State may even dissolve a corporation designated as a foreign terrorist organization or domestic terrorist organization.²¹

Foreign Law

New Florida law also provides that no court, administrative law judge, hearing officer, agency, arbitration panel, or any other authority or tribunal may enforce a foreign judgment or order, apply foreign law or religion law, or enforce a choice of law or forum selection clause of a contract that will result in a violation of a person's rights guaranteed by the U.S. or Florida Constitution.²²

Ethics Law

Public officers, agency employees, local government attorneys, or candidates who solicit or accept anything of value from a person or an entity representing or acting on behalf of a foreign country of concern or its subdivisions or a designated foreign terrorist organization is subject to a criminal or civil penalty and must "repay double the value of any pecuniary benefit received as a result of the violation committed."²³

Schools and Scholarships

State colleges and universities, public schools (including charter schools), school districts, charter school administrators and their direct support organizations may not expend funds to promote, support, or maintain a program or campus activity that promotes a foreign or domestic terrorist organization or person or entity providing material support to one.²⁴

Students promoting a foreign terrorist organization must be reported if on a student visa and, for promoting it, any student must be expelled and assessed the out-of-state fee subject to specified due process.²⁵ These students may not receive grants, financial aid, scholarships or tuition assistance.²⁶

Likewise, state school choice scholarships may not be spent at private schools that employ, contract with, are owned or operated by, or accept funds from a person, school group, or student group affiliated with or having a practice of supporting or advocating for a foreign or domestic terrorist organization, criminal gang, transnational crime organization, or a person or entity that has provided material support or resources to or received such support or resources from one.²⁷

Moreover, institutes of Florida colleges and universities linked to foreign countries may not enter into an agreement or participate in activities with a foreign country of concern or any organization in a foreign country of concern.²⁸ The legislature struck the Florida-China Institute associated with the University of West Florida, University of South Florida and Eastern Florida State College.

Criminal Law

A misdemeanor or felony committed "for the purpose of benefiting, promoting or furthering the interests of a foreign government, a designated foreign terrorist organization, or an agent of a foreign government or designated foreign terrorist organization" may be enhanced and subject to a minimum sentence.²⁹

A person commits a crime who receives "military-type training" from a designated foreign terrorist organization or domestic terrorist organization "with the intent to unlawfully harm another person or damage a critical infrastructure facility," knowingly provides material support or resources to one, or willfully becomes a member "with the intent to further the illegal acts of the organization."³⁰

Surrogacy and Adoption

A gestational surrogacy contract may not be entered into in Florida if any party to the contract is a citizen or resident of a foreign country of concern.³¹ Similarly, a preplanned adoption agreement is prohibited if the intended father or mother or volunteer mother is a citizen or resident of a foreign country of concern.³²

Questions?

Commercial activities as diverse as real property acquisition and development, mergers and acquisitions, charitable solicitation, public incentives and contracts, healthcare licensing and education involving international and domestic companies or capital are impacted by Florida law bearing upon foreign countries of concern and terrorism organizations.

For more information or questions, please contact the author.

Notes

¹ Ch. No. 2026-66 f/k/a CS/CS/CS/HB 905; Ch. No. 2026-28 f/k/a CS/CS/HB 1471.

² Id.

³ Id.

⁴ F.S. 288.860(1)(a).

⁵ Id.; F.S. 316.0078(1)(b).

⁶ Shen v. Comm'r, Fla. Dep’t of Ag. and Consumer Servs., 158 F. 4th 1227 (11th Cir. 2025).

⁷ Id.; Wang v. Paxton, 161 F. 4th 357 (5th Cir. 2025).

⁸ F.S. 288.854(4)(a).

⁹ F.S. 288.854(4)(c).

¹⁰ F.S. 205.0532(1)(2).

¹¹ F.S. 205.0532(3).

¹² F.S. 288.860(2)(b). This includes all sister city agreements. Id.

¹³ Id.

¹⁴ F.S. 775.32(1)(b); 775.34(1)(a); 874.03(7)(b); 1002.421(10(t)3.(a); 1009.01(2); 1009.24(22); 1009.26(22).

¹⁵ F.S. 943.03102(1)-(3).

¹⁶ Ch. No. 2026-29 f/k/a CS/CS/HB 1473.

¹⁷ F.S. 496.404(14)(g); 496.415(20).

¹⁸ F.S. 775.08255(1)(a).

¹⁹ F.S. 775.30(1)(b); 775.32(1)(c), 775.33(1)(b), 775.34(1)(b); 874.03(7)(a); 943.03102; 1002.421(10)(t)3.(e); 1009.01(1); 1009.24(22); 1009.26(22).

²⁰ F.S. 943.03102(4).

²¹ F.S. 617.1420(1)(f).

²² F.S. 2.05(3).

²³ F.S. 112.313(1)(b).

²⁴ F.S. 1003.035; 1004.06.

²⁵ F.S. 1006.61(3)(a); 1009.23(22).

²⁶ F.S. 1009.8963.

²⁷ F.S. 1002.421(1)(t).

²⁸ F.S. 288.8175(7).

²⁹ F.S. 775.08255(2), (3).

³⁰ F.S. 775.32(2), 775.33(3), 775.34(2).

³¹ F.S. 742.15(1)(b)1.

³² F.S. 63.213(2)(a).

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.