Washington D.C. — India has responded to concerns raised by a US lawmaker regarding the proposed Foreign Contribution (Regulation) Amendment Bill (FCRA), 2026, asserting that the legislation aims to enhance transparency, improve governance, and establish clearer regulations for foreign funding.
India’s Ambassador to the United States, Vinay Mohan Kwatra, utilized the social media platform X to issue a detailed “Myth vs. Reality check” on the bill. Kwatra stated, “There are many misunderstandings in the media and in civil society about the proposed Foreign Contribution (Regulation) Amendment Bill (FCRA), 2026. Here is the Myth vs. Reality check.”
Addressing claims that India is creating a new law to cut off foreign aid to civil society, Kwatra emphasized that the regulation of foreign financial flows in public and political spheres is a sovereign measure driven by national security considerations. He highlighted that such regulations are a common feature of modern governance in many democracies globally.
“The first FCRA in India came in 1976. It was replaced in 2010 with a more modern framework and strengthened by amendments in 2016, 2018, and 2020. The 2026 Bill and Rules are the next step in the same direction: more transparency, better governance, and clearer rules,” Kwatra explained.
He further clarified, “The fact is that the law does not forbid Indians from receiving foreign donations or shut down law-abiding civil society. Tens of thousands of associations are registered under FCRA and routinely receive foreign funds for health, education, disaster relief, research, and humanitarian work.”
Kwatra refuted allegations that the FCRA has negatively impacted non-governmental organizations (NGOs) and charitable groups, asserting that the latest amendment would not impose further restrictions on their operations. He noted that foreign contributions received by registered organizations increased from approximately $1.2 billion in 2010-11 to $2.67 billion in 2024-25.
He pointed out that while India has over 3 million NGOs, only 14,450 hold FCRA registration, meaning the vast majority of civil society organizations operate outside the Act’s purview. “FCRA does not stop anyone from accepting foreign charity, research grants, or humanitarian aid,” Kwatra affirmed. “It asks three things—register, receive the money through the laid-down process, and report what you did with it.”
The ambassador also addressed concerns about potential asset seizures from NGOs, religious charities, places of worship, hospitals, and schools. He explained that since 2010, when an organization’s registration is canceled or surrendered, foreign contributions and assets created from them already vest in a state government authority.
“What the 2026 Bill adds is a designated authority to safeguard those assets — and a way back,” Kwatra stated. “If the organization restores its registration, all assets and unused funds are returned in full.” He added that property linked to places of worship of associations with canceled registrations would be transferred to another FCRA-registered association of the same faith to ensure continuity of worship.
Kwatra rejected allegations that the law targets specific religions or communities, emphasizing that the Act applies uniformly to all organizations regardless of their faith, community, or ideology. He confirmed that faith-based welfare activities, religious education, maintenance of places of worship, and charitable work by organizations of every faith remain eligible for foreign funding.
To underscore that India is not an international outlier, Kwatra cited similar legislation in other countries, including the US Foreign Agents Registration Act of 1938 and the Foreign Account Tax Compliance Act of 2010, as well as laws adopted by Australia in 2018 and Canada in 2024. He also mentioned that the UK’s scheme would take effect in July 2025, with the European Union considering similar legislation.
The FCRA regulates the acceptance and use of foreign contributions by individuals, associations, and companies in India, requiring registration or prior permission and compliance with banking, accounting, and reporting requirements.
This clarification from India follows criticism from several US lawmakers, including Senator James Risch, who chairs the Senate Foreign Relations Committee. These lawmakers, from both Democratic and Republican parties, expressed concerns that the planned amendments to the FCRA could negatively impact Christian organizations and other civil society groups. Republican Congressman Riley Moore alleged that the proposed amendments would “permit government takeovers of churches and religious charities,” calling it “a clear attack against Christians” that would be “a point of major concern in our bilateral relationship with India.”
The Foreign Contribution (Regulation) Amendment Bill 2026 was introduced in the Lok Sabha on March 25. It provides a comprehensive framework for vesting, supervision, management, and disposal of foreign contributions and assets in a designated authority, including provisional and permanent vesting.
Last week, India’s Ministry of External Affairs spokesperson, Randhir Jaiswal, dismissed criticism from US lawmakers as an internal affair, stating that legislative matters concerning India are internal and decisions are made by the Indian Parliament. He also pointed out that several nations, including the United States, regulate the flow of foreign funds.
