diff --git a/src/registrar/forms/domain_request_wizard.py b/src/registrar/forms/domain_request_wizard.py
index 5668b3757..d27ccde89 100644
--- a/src/registrar/forms/domain_request_wizard.py
+++ b/src/registrar/forms/domain_request_wizard.py
@@ -322,6 +322,7 @@ class OrganizationContactForm(RegistrarForm):
         # if it has been filled in when required.
         # uncomment to see if modelChoiceField can be an arg later
         required=False,
+        # We populate this queryset in init. We want to exclude agencies with a portfolio.
         queryset=FederalAgency.objects.none(),
         widget=ComboboxWidget,
     )
@@ -369,7 +370,6 @@ class OrganizationContactForm(RegistrarForm):
         
         # Set the queryset for federal agency.
         # If the organization_requests flag is active, we hide data that exists in portfolios.
-        # NOTE: This function assumes that the federal_agency field was first set to None if a portfolio exists.
         federal_agency_queryset = FederalAgency.objects.exclude(agency__in=self.excluded_agencies)
         if flag_is_active_anywhere("organization_feature") and flag_is_active_anywhere("organization_requests"):
             # Exclude both predefined agencies and those matching portfolio names in one query
diff --git a/src/registrar/tests/test_utilities.py b/src/registrar/tests/test_utilities.py
index 5a2234d66..60b74cd60 100644
--- a/src/registrar/tests/test_utilities.py
+++ b/src/registrar/tests/test_utilities.py
@@ -1,7 +1,8 @@
 from django.test import TestCase
 from registrar.models import User
 from waffle.testutils import override_flag
-from registrar.utility.waffle import flag_is_active_for_user
+from waffle.models import get_waffle_flag_model
+from registrar.utility.waffle import flag_is_active_for_user, flag_is_active_anywhere
 
 
 class FlagIsActiveForUserTest(TestCase):
@@ -21,3 +22,40 @@ class FlagIsActiveForUserTest(TestCase):
         # Test that the flag is inactive for the user
         is_active = flag_is_active_for_user(self.user, "test_flag")
         self.assertFalse(is_active)
+
+
+class TestFlagIsActiveAnywhere(TestCase):
+    def setUp(self):
+        self.user = User.objects.create_user(username="testuser")
+        self.flag_name = "test_flag"
+    
+    @override_flag("test_flag", active=True)
+    def test_flag_active_for_everyone(self):
+        """Test when flag is active for everyone"""
+        is_active = flag_is_active_anywhere("test_flag")
+        self.assertTrue(is_active)
+    
+    @override_flag("test_flag", active=False)
+    def test_flag_inactive_for_everyone(self):
+        """Test when flag is inactive for everyone"""
+        is_active = flag_is_active_anywhere("test_flag")
+        self.assertFalse(is_active)
+    
+    def test_flag_active_for_some_users(self):
+        """Test when flag is active for specific users"""
+        flag, _ = get_waffle_flag_model().objects.get_or_create(name="test_flag")
+        flag.everyone = None
+        flag.save()
+        flag.users.add(self.user)
+        
+        is_active = flag_is_active_anywhere("test_flag")
+        self.assertTrue(is_active)
+    
+    def test_flag_inactive_with_no_users(self):
+        """Test when flag has no users and everyone is None"""
+        flag, _ = get_waffle_flag_model().objects.get_or_create(name="test_flag")
+        flag.everyone = None
+        flag.save()
+
+        is_active = flag_is_active_anywhere("test_flag")
+        self.assertFalse(is_active)