India’s proposed changes to the Foreign Contribution (Regulation) Act (FCRA) have drawn attention beyond the country’s borders after a U.S. congressman criticised the legislation, arguing it could affect religious organisations and strain India-U.S. relations.

The proposed amendments, which are expected to return to Parliament during the ongoing Monsoon Session, would expand the government’s authority over foreign-funded organisations, including charities, non-governmental organisations (NGOs), and religious institutions.

While critics claim the bill could disproportionately affect Christian organisations, the Indian government maintains that the proposed changes are religion-neutral and intended to strengthen oversight of foreign funding.

Why is the FCRA Amendment Bill controversial?

The Foreign Contribution (Regulation) Act governs how individuals, NGOs, charitable organisations, and religious bodies in India receive and use foreign donations.

The proposed 2026 amendments would reportedly establish a “Designated Authority” empowered to manage foreign funds and assets created through overseas contributions if an organisation’s FCRA registration is cancelled, surrendered, or expires.

Supporters argue the changes would improve transparency and accountability in the use of foreign funds. Critics, however, say the expanded powers could increase government control over organisations that depend on international donations.

Three objections raised by Congressman Riley Moore

Riley Moore, a Republican lawmaker from West Virginia, outlined several concerns about the proposed legislation in a public statement.

1. Expanded government authority over religious organizations

Moore argued that creating a designated authority could allow the government to assume control over foreign-funded assets belonging to churches and charitable institutions if their FCRA licenses are revoked or allowed to lapse.

He described the proposal as giving authorities excessive control over religious organisations.

2. Alleged impact on Christian organizations

Moore also claimed the amendments could disproportionately affect Christian institutions in India.

He pointed to Christianity’s long history in the country and argued that the legislation could negatively affect churches and faith-based charities that receive overseas funding.

The Indian government has rejected claims that the legislation targets any specific religious community.

3. Concerns about India-U.S. relations

Moore further suggested that if enacted without changes, the bill could become an issue in bilateral relations between India and the United States.

His comments reflect growing international attention on India’s regulation of foreign-funded organisations, although they do not represent an official position of the U.S. government.

How the Indian government has responded

The central government has repeatedly said the proposed amendments are not directed at any religious community.

According to officials, the objective is to strengthen oversight of foreign contributions while allowing legitimate charitable organisations to continue their work within the legal framework.

Government representatives have also emphasised that Christian organisations account for less than 15% of total foreign contributions received under the FCRA system, arguing that the legislation is not designed to target a specific faith group.

Outreach to Christian leaders

The government has undertaken several outreach efforts to address concerns raised by Christian organisations.

Home Minister Amit Shah met a delegation from the Catholic Bishops’ Conference of India (CBCI), where church leaders requested that the proposed amendments be reconsidered.

According to reports, Shah assured the delegation that the changes are religion-neutral, would not apply retrospectively, and are intended to improve regulatory oversight rather than restrict legitimate religious or charitable activities.

Prime Minister Narendra Modi has also dismissed allegations that the bill targets Christians, accusing political opponents of spreading misinformation about its provisions.

Meanwhile, Union Minister Kiren Rijiju said the government remains open to addressing concerns and that only organisations found violating the law would face action.

What happens next?

The proposed amendments are expected to return for parliamentary consideration during the current session.

If enacted, the legislation would reshape India’s regulatory framework for foreign funding by expanding government oversight of organisations that receive overseas contributions.

The debate surrounding the bill illustrates the broader challenge of balancing regulatory transparency with concerns about religious freedom, civil society independence, and international scrutiny.

The final impact of the amendments will depend on the legislation ultimately passed by Parliament and how the new provisions are implemented.