FCRA Bill 2026: Why a Proposed Indian Law on Foreign Funding Alarmed a US Congressman
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FCRA Bill 2026: US Congressman Riley Moore criticised the proposed FCRA amendments, saying they could affect churches and strain India-US relations.
By Pranjal Gupta
New Delhi, August 5: A proposed amendment to India's Foreign Contribution (Regulation) Act (FCRA) has sparked fresh political debate after US Congressman Riley Moore criticised the Bill. He called the proposed changes "a clear attack against Christians" and warned that they could affect relations between India and the United States.
The remarks come as Parliament debates the Foreign Contribution (Regulation) Amendment Bill, 2026 during the ongoing Monsoon Session.
US lawmaker raises concerns
In a post on X, Moore referred to the long history of Christianity in India before criticising the proposed law.
"Christians have been in India since St. Thomas the Apostle travelled to the Malabar Coast just decades after the resurrection of our Lord Jesus Christ," he wrote.
He then claimed that the proposed amendments could allow the government to take control of churches and religious charities.
"This is a clear attack against Christians. If this Bill proceeds in this way, it would be a point of major concern in our bilateral relationship with India," he said.
What is the FCRA?
The Foreign Contribution (Regulation) Act, 2010 regulates how organisations in India receive and use foreign donations. It applies to non-governmental organisations (NGOs), charitable trusts, educational institutions, religious bodies and associations.
Under the current law, organisations must obtain registration from the Ministry of Home Affairs before accepting foreign funds. The registration must be renewed every five years.
According to the background note attached to the Bill, India had 14,449 active FCRA registrations as of July 15, 2026. Another 22,498 registrations had been cancelled, while 15,212 registrations had expired, a report by India Today said.
Between 2019 and 2022, organisations registered under the FCRA received foreign contributions worth Rs 55,741 crore.
What changes does the Bill propose?
One of the biggest changes is the creation of a Designated Authority, appointed by the Central Government.
If an organisation's FCRA registration is cancelled, surrendered or not renewed, the Designated Authority would be able to take over the management of foreign funds and assets created using those funds.
The Bill also proposes that organisations must have received or used at least Rs 10 lakh in foreign contributions during the previous two financial years to qualify for renewal of their registration.
Other proposed changes include stricter rules on transferring foreign funds to other organisations, tighter timelines for receiving and spending overseas donations, and wider disclosure requirements. Organisations may also have to provide more details about their projects, activities, websites and social media accounts.
Why has the Bill become controversial?
The proposal to give the Designated Authority control over foreign-funded assets has become the main point of disagreement.
Opposition parties, NGOs and several civil society groups argue that the amendments give the Central Government broad powers over organisations that depend on foreign donations.
Churches and religious organisations have raised concerns that schools, hospitals, welfare institutions and other properties built over many years with foreign funding could come under government control if their FCRA registrations are cancelled or allowed to expire.
These concerns are particularly strong in Kerala, where many Christian organisations run large educational and healthcare institutions that have traditionally received support from overseas donors.
Government defends the proposal
The Central Government has defended the proposed amendments. It says the changes are meant to improve transparency, strengthen oversight and ensure greater accountability in the use of foreign contributions.
The Bill is still under discussion in Parliament, and the debate over its impact on religious organisations, NGOs and India's regulatory framework is expected to continue.
