Understanding The Impact Of Different Terrorism Designations: A Look At Recent And Potential Administration Actions

• Published date: 23 October 2025
• Subject Matter: Government, Public Sector, Terrorism, Homeland Security & Defence
• Law Firm: WilmerHale
• Author: Joshua A. Geltzer, Lauren Moore, Matthew G. Olsen, Zachary Goldman, Aaron Zebley and Samson F. Cohen

In late September, President Trump issued an executive order designating "Antifa" as a "Domestic Terrorist Organization."¹ As we have described in a previous client alert, the President soon thereafter also issued a National Security Presidential Memorandum titled "Countering Domestic Terrorism and Organized Political Violence" as well as an accompanying fact sheet.² On October 8, the President convened a roundtable at the White House, attended by several senior Trump Administration officials, to discuss violence allegedly perpetrated by Antifa. In one notable exchange, a reporter asked the President whether he would take the further step of designating Antifa as a "Foreign Terrorist Organization." The President answered, "Let's get it done," and directed Secretary of State Marco Rubio to "take care of it." At least one member of Congress, Sen. Eric Schmitt (R-MO), has sent Secretary Rubio a letter urging him to do so.

These actions and announcements underscore that US government efforts to implement the recent executive order, National Security Presidential Memorandum and more will focus on a widely defined set of organizations perceived as being on the political left. Given the wide-ranging investigatory and other steps potentially underway or forthcoming against individuals and entities characterized as part of or supporting violent actions, entities perceived as linked to progressive causes (including foundations, other nonprofits and for-profit businesses) could face a range of government actions. These include the government designating these entities as terrorist organizations, blocking their assets, revoking their tax-exempt status, and potentially even criminally investigating the entities and possibly their staff and board members.

This client alert summarizes the most salient terrorist designation regimes and their consequences. The potential targets of government action and their closely associated third parties should be aware of the various designations the Administration could employ to suspend tax-exempt status, de facto or de jure block assets, and predicate criminal investigations.

Foreign Terrorist Organization (FTO), Specially Designated Global Terrorist (SDGT) and Specially Designated National (SDN) Designations

FTO. The Secretary of State has authority under the Immigration and Nationality Act (INA) to designate an organization as an FTO if the organization meets three criteria: the suspected terrorist group must (1) be a foreign organization; (2) engage in "terrorist activity" or "terrorism," or retain the capability and intent to engage in terrorist activity or terrorism; and (3) threaten the security of US nationals or the national defense, foreign relations, or economic interests of the United States.³ An FTO designation carries several possible repercussions'both for the designated organization and for third parties'as we outline below and have explained in depth in a recent client alert related to the Trump Administration's designations of several drug cartels as FTOs earlier this year. The provision of the INA authorizing the FTO designation regime imports the definition of "terrorist activity" from 8 U.S.C. ' 1182(a)(3)(B)(iii) and the definition of "terrorism" in 22 U.S.C. ' 2656f(d)(2).⁴

SDN/SDGT. Under the International Emergency Economic Powers Act (IEEPA), 50 U.S.C. ' 1701 et seq., and Executive Order 13224 (as subsequently amended),⁵ the Secretaries of State and Treasury can designate certain entities as Specially Designated Global Terrorists (SDGTs), and thereby add them to the Office of Foreign Assets Control's list of Specially Designated Nationals and Blocked Persons (SDN List).⁶ Entities can be designated as SDGTs under IEEPA and relevant executive orders (1) if they have committed, or pose a significant risk of committing, acts of terrorism that threaten the security of US nationals or the national security, foreign policy, or economy of the United States; (2) if they are owned or controlled by, or act for or on behalf of, specified individuals or entities; (3) if they assist in, sponsor, or provide financial, material, or technological support for, or financial or other services to or in support of, acts of terrorism or specified individuals or entities; or (4) if they are otherwise associated with certain individuals or entities designated in or under the operative executive order.⁷ For the purpose of SDGT designations, "terrorism" is defined to be

an activity that'

(i) involves a violent act or an act dangerous to human life, property, or infrastructure; and

(ii) appears to be intended

(A) to intimidate or coerce a civilian population;

(B) to influence the policy of a government by intimidation or coercion; or

(C) to affect the conduct of a government by mass destruction, assassination, kidnapping, or hostage-taking.⁸

Impacts of FTO and SDGT Designations on...