A proposed amendment to India’s foreign funding laws is drawing criticism from religious freedom advocates, who warn the measure could significantly affect Christian ministries, charities, schools, hospitals, and media organizations that rely on international donations. The Foreign Contribution Regulation Amendment Bill 2026 is currently under consideration in India’s Parliament. Introduced in the Lok Sabha, the lower house, the legislation would expand government authority over non-governmental organizations (NGOs) that receive foreign funding. Advocacy groups are urging lawmakers to reject the bill during Parliament’s ongoing Monsoon Session.
Under the proposal, India’s Ministry of Home Affairs would gain the power to seize and manage the assets of NGOs whose foreign funding registrations are canceled, expire, or become inactive because of administrative issues. The ministry could also sell those assets and retain the proceeds without requiring judicial review, according to critics of the bill.
The legislation would amend the Foreign Contribution (Regulation) Act (FCRA), first enacted in 1976 to regulate foreign donations to organizations operating in India. The law requires nonprofits receiving overseas funds to register with the Ministry of Home Affairs, and several amendments over the years have increased regulatory requirements. Government officials argue the latest proposal is intended to prevent the misuse of foreign contributions. Minister of State for Home Affairs Nityanand Rai told lawmakers that the measure would help stop faith-based organizations from using foreign funds to encourage religious conversions.
Religious Freedom Institute (RFI) President David Trimble disputes that rationale, arguing that sharing religious beliefs is a protected aspect of religious freedom. He said organizations can already lose their FCRA licenses based on allegations of conversion activities, placing many faith-based groups at risk. According to RFI, the number of organizations authorized to receive foreign contributions has steadily declined. While approximately 16,000 NGOs held active FCRA licenses in April 2024, more than 20,000 registrations had already been canceled. Recent government data shows active licenses have fallen below 14,500, while canceled registrations have surpassed 22,000.
Several prominent Christian organizations have faced restrictions under the current law in recent years. RFI reports that Compassion International and World Vision India have lost some or all of their ability to operate in the country since 2020, along with Catholic-affiliated organizations including Church’s Auxiliary for Social Action and the Tamil Nadu Social Service Society.
The proposed amendment has also drawn attention in the United States. Rep. Chris Smith, R-N.J., urged Secretary of State Marco Rubio before his May visit to India to encourage Indian officials to withdraw the bill. Smith warned that even a minor reporting error involving a foreign donation could expose churches, schools, hospitals, and other ministry assets to government seizure under the legislation’s provisions.
Trimble argues that the measure could undermine India’s constitutional protections for the free profession, practice, and propagation of religion while also discouraging international donors from supporting humanitarian and religious work in the country.
The U.S. Commission on International Religious Freedom has repeatedly recommended that India be designated a “Country of Particular Concern” for alleged religious freedom violations. Although U.S. administrations have not adopted that recommendation, RFI maintains that passage of the amendment would strengthen calls for increased diplomatic scrutiny of India’s religious freedom record.
As debate continues, supporters view the bill as a tool for greater oversight of foreign funding, while opponents warn it could place thousands of faith-based and charitable organizations at risk.
PRAY: Pray India will not go through with this bill and that funding and religious freedom will incur within the world’s largest nation by population.