India Introduces FCRA Amendment Bill in Lok Sabha

Union Minister of State for Home Affairs Nityanand Rai introduced the Foreign Contribution Regulation Amendment Bill, 2026, in India's Lok Sabha on March 25, 2026, proposing stricter controls on foreign-funded nonprofits to address gaps in the existing law and prevent misuse of funds. The legislation, presented on behalf of Home Minister Amit Shah during the budget session, aims to enhance transparency and accountability in the handling of foreign contributions, which currently support around 16,000 registered organizations receiving approximately Rs 22,000 crore annually.

The bill targets operational challenges in the Foreign Contribution Regulation Act of 2010, which has been amended in 2016, 2018, and 2020 to regulate foreign funding and hospitality and safeguard national interest, public order, and security. According to the bill's statement of objects and reasons, issues such as the lack of a clear framework for managing assets when registrations are cancelled, surrendered, or expire have led to administrative uncertainty and potential misuse. Key provisions include the creation of a designated authority to provisionally vest foreign contributions and related assets in...