US Lawmaker Warns India’s FCRA Bill Could Strain Bilateral Ties

US Congressman Riley Moore has voiced strong opposition to India’s proposed Foreign Contribution (Regulation) Amendment Bill, 2026, suggesting it could strain US-India relations. Moore specifically highlighted concerns about the bill’s potential negative impact on religious freedom, particularly for Christian organizations and their charitable activities.

Key Provisions of the FCRA Amendment Bill

The bill, currently under parliamentary debate, aims to introduce significant changes to the oversight of foreign funding for non-governmental organizations. These measures are designed to enhance transparency and accountability within the non-profit sector operating in India.

Key provisions of the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, include:

• Establishing a Designated Authority with powers to manage, transfer, or dispose of assets belonging to organizations. This applies to entities that lose their FCRA registration due to cancellation, surrender, or non-renewal.
• Introducing stricter compliance requirements, including a mandatory minimum utilization threshold for foreign funds. Organizations must meet this threshold over a two-year period to retain their registration.
• Mandating that non-compliance with these new utilization rules will directly lead to the loss of FCRA registration for the affected organizations.

Government’s Stance and Criticisms

The Indian government defends these proposed amendments as crucial steps to ensure transparency in foreign donations and to protect national security. Officials state the measures will enhance oversight of the non-profit sector, promoting responsible use of international funds.

However, critics, including various civil society groups, argue that these new rules would grant the government excessive control over their operations. Concerns are particularly high in regions heavily reliant on foreign-funded hospitals, schools, and social welfare institutions for essential services.

The Path Forward

Stakeholders are closely watching the legislative process for the final version of the rules, especially regarding the Designated Authority’s powers. Any potential compliance relief mechanisms will also be crucial, as these changes are expected to significantly affect both domestic and international relations.