New Delhi: The government has introduced the Foreign Contribution (Regulation) Amendment Bill, 2026, in the Lok Sabha, proposing sweeping changes to tighten and streamline the FCRA framework.
The amendment aims to create a clear legal structure for the management of foreign funds, assets created from such funds, investigation procedures, and handling of assets when an organization’s registration ceases.
The proposed law targets NGOs, trusts, societies, and other institutions receiving foreign contributions, with a strong emphasis on accountability and state oversight.
A key highlight of the bill is the introduction of a Designated Authority, which will take control of foreign funds and assets in specific situations. If an organization’s FCRA registration is cancelled, surrendered, expired, or not renewed, its foreign funds and assets created from those funds will be transferred to this authority. These assets may initially be held temporarily and can eventually come under permanent government control.
The amendment empowers the government to act decisively in cases where registration is not restored. It can transfer such assets to a government department or sell them. The government will now prescribe timelines for both receiving and utilising foreign contributions. This means organisations will no longer be allowed to hold foreign funds indefinitely.
