The Union government on Wednesday put on hold the debate on the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, in the Lok Sabha, following intense Opposition protests and growing political sensitivities ahead of the Kerala Assembly elections.
The bill, introduced on March 25, seeks to tighten regulations on foreign funding received by NGOs and institutions. A key provision proposes the creation of a “designated authority” empowered to take control of assets generated through foreign contributions if an organisation’s licence is cancelled or lapses.
However, the proposal triggered sharp backlash from Opposition parties, including the Congress, CPI(M), and Samajwadi Party, who termed the amendments “draconian” and unconstitutional. They alleged that the law could give the Centre excessive control over NGOs and disproportionately impact minority-run institutions.
The controversy gained further traction in poll-bound Kerala, where church groups and political leaders expressed concern that institutions such as schools, hospitals, and charities funded partly through foreign donations could face government intervention. With Assembly elections scheduled for April 9, the issue quickly took on electoral significance.
Amid slogan-shouting and protests in Parliament, Parliamentary Affairs Minister Kiren Rijiju announced that the bill would not be taken up for discussion, attributing the decision to legislative priorities rather than political pressure. He also accused Opposition parties of spreading misinformation, particularly in Kerala.
While the government maintains that the amendments are aimed at ensuring transparency, national security, and proper utilisation of foreign funds, critics argue that the provisions risk undermining civil society autonomy.
For now, the bill has been deferred and is unlikely to be taken up again during the ongoing Budget session, though it has not been withdrawn—leaving the debate over foreign funding regulations far from settled.