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New Delhi: The proposed Foreign Contribution (Regulation) Amendment Bill, 2026 is likely to trigger a major political battle in Parliament as the Centre prepares to push the legislation during the ongoing Monsoon Session.

Home Minister Amit Shah is expected to lead the government’s defence if the Bill comes up for debate, according to media reports. The Bill seeks to amend the FCRA Act, 2010, which regulates how individuals, NGOs and organisations receive and use foreign contributions in India.

Centre Aims to Pass Bill Before Monsoon Session Ends

The Monsoon Session of Parliament began on July 20 and is scheduled to conclude on August 13. The government has indicated that there is no plan to extend the session or call a special sitting.

However, the Centre is keen to secure approval for the FCRA amendments before the session ends. The Bill was introduced in the Lok Sabha on March 25, 2026.

What Changes Does FCRA Amendment Bill Propose?

One of the major proposals is the creation of a Designated Authority to manage foreign funds and assets of organisations whose FCRA registration is cancelled, surrendered or expires.

Under the proposed system, foreign contributions and assets of such organisations would temporarily come under the authority’s control. If the organisation restores its registration within the given timeline, the assets and unused funds would be returned. Otherwise, they may permanently vest with the authority.

Rules for NGOs, Religious Assets and Penalties

The Bill also includes provisions to organisations whose FCRA certificates expire or are not renewed. For religious properties, including places of worship, the proposed law states that their religious character must be protected.

The amendments also provide options for revision and judicial appeal against decisions of the Designated Authority. Additionally, the government has proposed reducing the maximum imprisonment for FCRA violations from five years to one year and changing investigation procedures involving state agencies.

Opposition and US Concerns Over FCRA Bill

The proposed legislation has faced criticism from opposition parties and several NGOs, who have raised concerns over increased government control over foreign-funded organisations.

The issue has also attracted international attention, with a US Congressman warning that the amendments could impact India-US relations. The government, however, maintains that the changes are aimed at improving transparency, closing loopholes and strengthening oversight of foreign contributions.