The FCRA Amendment Bill 2026 Invites Criticism from the Christian Community in Kerala Amid the Kerala Assembly Elections 2026: Reasons Why this Bill is Controversial

A Foreign Contribution (Regulation) Amendment Bill, 2026, was introduced in Parliament on 25 March 2026, causing widespread outrage among the Christian community, especially in Kerala. The bill was tabled in the Lok Sabha last week and aims to make the rules governing foreign funding stricter. The FCRA bill focuses on increasing transparency and surveillance over funds, as well as greater control over money.

While some defended the bill, several critics stated that many non-governmental organisations (NGOs) will face direct consequences due to it. With the Kerala Assembly elections 2026 looming around the corner, the FCRA Amendment Bill has reportedly failed to attract positive response from the Christian communities in the state.

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As per the narrative put forward by the Indian government, the FCRA Amendment Bill aims to fix the loopholes in the Foreign Contribution (Regulation) Act, 2010. It seeks to regulate foreign funds and ensure that the money is not used for any form of illegal activity.

However, the newly introduced amendment bill has drawn criticism for how it restricts the functioning of NGOs that operate primarily on foreign funds and assets. How does the FCRA Amendment Act, 2026, affect these NGOs? Let’s understand what FCRA amendment bill 2026 actually is.

What is the FCRA Amendment Act, 2026?

The FCRA Amendment Bill, 2026 aims to regulate the process of receiving and transferring any form of foreign contribution, such as currency or securities. Under the provisions of the newly introduced amendment bill, such foreign contributions received by companies, individuals, and associations will be closely monitored.

Firstly, the newly introduced FCRA Amendment Bill proposes the creation of a specific statutory authority that will control foreign funds in certain situations. In case an organisation’s FCRA registration is cancelled or not renewed, the designated authority will take control of all its foreign funds and assets.

The bill also targets the assets of an organisation if it shuts down under any circumstance. If an organisation stops functioning, any foreign funds or assets it possesses will be taken over by the government through the designated authority that has been set up.

The authority also has the power to utilise foreign funds to manage the assets, but it will return them to the organisation if it renews or restores its FCRA registration. It further states that FCRA registration will automatically end if it is not renewed or if the renewal is rejected.

The bill also restricts the indefinite accumulation of assets held by an organisation. It requires that these assets be used within a specified period to ensure there is no misuse.

The FCRA Amendment Bill states that if the rules of the Act are not followed, the organisation can face punishment in the form of imprisonment, a fine, or both.

The amended bill, which was introduced last week, has gained widespread criticism, with many stating that it will have a drastic effect on NGOs operating in India. The previous amendment, introduced in 2020, also invited similar criticism. The FCRA Amendment Act, 2020 was criticised for cornering small NGOs. It reduced the limit on expenses used for administrative purposes from 50% to 20%.

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Opposition Calls Out the FCRA Bill 2026 Amid the Kerala Assembly Elections 2026

Congress leader Shashi Tharoor took to his official X account on March 26, 2026, to emphasise that the newly introduced FCRA Amendment Bill has major implications for various Christian institutions in Kerala. He wrote that he had a discussion on the subject with Archbishop Thomas Tharayil of Changanassery.

He stated that the FCRA Bill promotes greater state control over foreign funds. “For Christian institutions, especially in Kerala, which hosts a historic and extensive network of Christian-run hospitals, educational trusts, and social welfare NGOs, the proposed changes have triggered significant alarm,” wrote Tharoor. He further added that the new bill has a direct impact on the country’s freedom.

In a recent development, Kerala CM Pinarayi Vijayan shared a letter addressed to Prime Minister Narendra Modi, urging him to withdraw the provisions that have raised concerns among several minority communities in Kerala. He wrote on X, “By granting sweeping powers to seize assets over technicalities, the Union government is creating a tool for arbitrary control and intimidation.”

According to a report by The Hindu, several bishops of the Syro-Malabar Church in Kerala have reportedly expressed their concerns over the new FCRA Bill. The Deputy Secretary General of the Kerala Catholic Bishops’ Council (KCBC) told The Hindu, “This money is used for charitable and educational purposes in various parts of the country. Blocking these funds would negatively impact the functioning of such institutions.”

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