India’s FCRA Bill 2026 Sparks US Concern Over Church Takeovers

India’s Foreign Contribution (Regulation) Amendment Bill 2026 has drawn sharp criticism from U.S. lawmakers after the government proposed giving itself power to seize churches and religious charities that lose their FCRA registration. U.S. Congressman Riley Moore called it a clear attack on Christians and warned the move could damage bilateral relations between Washington and New Delhi.

What the bill allows the government to do

The bill empowers the government to create a Designated Authority that can take over management of foreign contributions and assets when an organisation’s FCRA registration is cancelled, surrendered, or not renewed. If the organisation fails to regain registration within a set period, the government’s control becomes permanent and assets can be used for public purposes. The law applies to all institutions, not just churches, but specifies that religious character of places of worship must be preserved.

Why U.S. lawmakers are alarmed

Congressman Riley Moore, a first-term Republican from West Virginia, said the amendments amount to a clear attack against Christians. He noted Christians have been in India since St Thomas the Apostle arrived on the Malabar Coast and warned that if the bill proceeds, it would be a major concern in bilateral relations. The Ministry of External Affairs has not yet commented on the criticism.

India’s foreign funding landscape and compliance framework

Between 2019 and 2022, 13,520 organisations received ₹55,741 crore in foreign contributions, according to the Ministry of Home Affairs. As of July 15, 2026, there are 14,449 active FCRA certificates, 22,498 cancelled, and 15,212 deemed expired. The amendment rules introduced on June 22, 2026, also reduce the maximum penalty for FCRA violations from five years imprisonment to one year and require organisations to use a designated State Bank of India account for foreign funds.

Opposition and support in India

Opposition MPs have described the bill as dangerous and draconian, while civil society groups have also criticised it. However, supporters argue the bill strengthens transparency and accountability. The bill was introduced in Parliament in March during the Budget Session but has not been cleared by either house. The government frames FCRA as a registration, disclosure and accountability regime rather than a ban on civil-society activity.

Final Thoughts

The FCRA Amendment Bill 2026 remains stalled in Parliament but has already triggered international friction. For investors and NGOs operating in India, the key risk is regulatory uncertainty around foreign funding and asset control if registration lapses.

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