FCRA Amendment Bill Explained: Key changes, Opposition's concerns and government's stand on foreign funding

Union Parliamentary Affairs Minister Kiren Rijiju on Wednesday reached out to Leader of Opposition in the Lok Sabha Rahul Gandhi seeking his cooperation for smooth proceedings during the remaining period of the Monsoon Session.

The two leaders spoke about the pending legislative agenda, including the proposed amendment to the FCRA and the possible re-introduction of a constitutional amendment Bill linked to the Delimitation Bill.

While there is no clarity yet on whether the Delimitation Bill will be brought in this session itself before it concludes on August 13, sources said Shah will speak in Parliament when the Foreign Contribution (Regulation) Amendment Bill, 2026 is introduced in the House for discussion and passage.

Since the Monsoon session began on July 20, the Lok Sabha has not been able to complete its Question Hour. Five bills have been passed without discussion amid din.

The Foreign Contribution (Regulation) Amendment Bill, 2026 seeks to amend the Foreign Contribution (Regulation) Act, 2010, which governs how individuals, associations and organisations receive and use foreign donations.

Through the Foreign Contribution (Regulation) Amendment Bill, 2026, the government seeks a greater control over foreign-funded assets if organisations that receive funds from overseas sources lose their registration, according to an earlier report in Mint.

The proposed amendment bill proposes the creation of a “designated authority” that will take charge of foreign contributions and assets created out of such funds in cases where an organisation’s registration is cancelled, surrendered, not renewed, or the entity ceases to exist.

The assets will be initially placed under the authority’s control and may be permanently transferred if the organisation fails to regain registration within a specified period, it noted.

The authority will also have the power to manage these assets and, if required, oversee the activities of such entities in the public interest. It will be responsible for safeguarding and maintaining assets created out of foreign contributions.

As many as 16,000 associations are registered under the Foreign Contribution (Regulation) Act (FCRA) framework, receiving nearly ₹22,000 crore in foreign contributions annually.

The new amendments aim to address operational and legal gaps in the existing law, particularly in the management of foreign contributions and assets, noting that the absence of a comprehensive framework has led to administrative uncertainty and scope for misuse.

Describing the proposed law as ‘completely unconstitutional,’ AICC General Secretary K C Venugopal claimed that the Foreign Contribution Regulation Amendment (FCRA) Bill would harm NGOs and community organisations, particularly those run by minority communities.

He said Congress will not allow the bill to be passed under any circumstances. He said the bill is the latest example of such efforts.

Venugopal also described the bill as a "threat" hanging over minority communities, saying it is a deliberate attempt to intimidate and control organisations, including Christian institutions in Kerala. He also said the bill contains provisions that would tighten control over voluntary organisations and institutions engaged in social services.

Trinamool Congress MP Derek O'Brien has called the Bill ‘draconian’ and sought an All-Party Meeting to discuss it.