US Congressman Calls India’s FCRA Changes a ‘Church Takeover’… Why the Proposed Foreign Funding Law Has Triggered a Diplomatic Debate

A proposed amendment to India’s Foreign Contribution Regulation Act (FCRA) has sparked criticism in the United States, with Republican Congressman Riley Moore alleging that the legislation could pave the way for government control over churches and religious charities.

The remarks have added an international dimension to India’s proposed reforms governing foreign funding received by non-governmental organisations (NGOs), trusts, educational institutions and religious bodies.

US Congressman Raises Concerns

In a post on X, Riley Moore, who represents West Virginia in the US House of Representatives, claimed that the proposed amendments would permit the Indian government to take over churches and religious charities if their FCRA registrations were cancelled or expired.

Describing the proposal as a “clear attack against Christians,” Moore warned that the legislation, if passed in its current form, could become a matter of concern in the broader bilateral relationship between India and the United States.

He also referred to the long history of Christianity in India, noting that Christian communities have existed in the country for centuries.

What Does the Proposed FCRA Amendment Say?

The Foreign Contribution (Regulation) Amendment Bill, 2026 aims to strengthen the government’s oversight of foreign-funded organisations.

One of the key provisions of the bill is the creation of a Designated Authority, which would be empowered to manage foreign contributions and assets created using those funds in cases where an organisation’s FCRA registration is cancelled, surrendered or lapses due to non-renewal.

According to the proposed legislation, the authority would temporarily oversee the utilisation and management of such assets in accordance with the law.

Protection for Places of Worship

The proposed amendment also contains a provision specifically addressing religious institutions.

It states that if the assets involved include a place of worship, the Designated Authority must ensure that the religious character of the property is preserved during its management.

Supporters of the amendment argue that this clause is intended to safeguard the religious identity of such institutions while ensuring legal compliance in the administration of foreign-funded assets.

Other Key Changes in the Bill

Apart from introducing the Designated Authority, the bill proposes to reduce the maximum punishment for violations of the FCRA.

Under the proposed amendment, the maximum prison sentence for certain offences would be reduced from five years to one year, marking a significant change in the penal provisions of the law.

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Foreign Funding Under FCRA

According to data from the Ministry of Home Affairs (MHA), a total of 13,520 organisations received approximately ₹55,741 crore in foreign contributions between 2019 and 2022.

Official data available on the FCRA portal further shows that, as of July 15, 2026, India had 14,449 active FCRA registrations, while 22,498 certificates had been cancelled and 15,212 had expired without renewal.

Debate Likely to Continue

The proposed amendments have reignited discussions over balancing financial transparency, regulatory oversight and the operational independence of organisations receiving foreign funds.

While critics argue that the new provisions could increase government control over institutions dependent on overseas donations, the government has maintained that the reforms are intended to improve accountability and provide a structured mechanism for managing foreign-funded assets when organisations cease to be eligible under the law.

The bill is expected to remain under close scrutiny as it moves through the legislative process, with both domestic and international stakeholders watching its progress.