A proposed amendment to India's Foreign Contribution (Regulation) Act (FCRA) has drawn sharp criticism from US lawmakers, who warn that the legislation could negatively impact the diplomatic relationship between the two nations. The bill, currently under consideration in the Indian Parliament, seeks to introduce stricter oversight for non-governmental organizations (NGOs) and religious institutions that receive foreign funding. US Congressman Riley Moore recently expressed strong opposition to the measure, characterizing it as a potential threat to religious freedom and the operational independence of charitable groups.
The FCRA, originally enacted in 1976 and significantly revised in 2010, governs how Indian associations receive and utilize contributions from abroad. The 2026 amendment bill proposes the creation of a government-appointed 'Designated Authority' with the power to manage, transfer, or dispose of assets belonging to organizations that lose their FCRA registration. This loss of status can occur if a license is cancelled, surrendered, or fails to be renewed. The government of India maintains that these measures are necessary to ensure transparency, prevent the misuse of foreign funds, and safeguard national security.
Critics, including several US officials, argue that the new provisions could disproportionately affect Christian churches, schools, and hospitals, which often rely on international donations. They contend that the potential for government seizure of assets—even for minor technical or accounting errors—creates an environment of uncertainty for civil society organizations. As the Indian Parliament debates the bill during its current session, the international community continues to monitor how these regulatory changes might influence India's broader commitment to civil liberties and its strategic partnership with the United States.