US Lawmaker Warns Foreign Contribution Regulation Amendment (FCRA) Bill Could Impact India-US Bilateral Ties

WASHINGTON / NEW DELHI: US Congressman Riley Moore has expressed strong reservations regarding the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, warning that the legislation could become a significant point of concern in bilateral relations between India and the United States.

The Republican lawmaker from West Virginia criticized proposed provisions within the bill, alleging that amendments allowing for government oversight of assets could disproportionately affect religious charities and churches.

Concerns Raised Over Designated Authority and Asset Management

Central to the diplomatic friction is a clause in the proposed FCRA Amendment Bill that provides for the creation of a 'Designated Authority'. Under the draft provisions, if an organization's FCRA registration is cancelled, surrendered, or lapses, this authority would assume management over foreign contributions and assets acquired using such funds.

While the bill explicitly specifies that the religious character of places of worship must be preserved under any Designated Authority, critics and foreign observers argue that broad powers over properties, schools, and healthcare institutions operated by non-governmental entities could create operational uncertainty.

Government Maintains Bill Aims to Boost Transparency:

The Government of India has defended the proposed amendments currently under consideration during the Monsoon Session of Parliament, emphasizing that the legislative updates are designed to enhance accountability, prevent misuse of foreign funds, and streamline compliance framework.

According to Ministry of Home Affairs data, 13,520 registered organizations in India received foreign contributions totaling ₹55,741 crore between 2019 and 2022. Officials maintained that non-profit bodies operating strictly within statutory guidelines will face no hindrance under the updated regulatory regime.