A proposed amendment to India’s foreign funding law has sparked sharp criticism from US Congressman Riley Moore, who warned it could strain India–US ties, NDTV reported.

The bill empowers the government to seize control of foreign-funded assets when FCRA registrations lapse, though it also reduces penalties for violations.

The Foreign Contribution (Regulation) Amendment Bill, 2026 has become a flashpoint in Washington and New Delhi. Republican Congressman Riley Moore of West Virginia, a member of President Donald Trump’s party, has publicly claimed that the legislation amounts to a “clear attack against Christians.” 

He argued that the bill would allow the Indian government to take over churches and religious charities if their registration under the Foreign Contribution Regulation Act (FCRA) is cancelled, surrendered, or not renewed. He warned that such provisions could become a major concern in bilateral relations between India and the United States.

Moore invoked the long history of Christianity in India, noting that Christians have been present since St Thomas the Apostle travelled to the Malabar Coast just decades after the resurrection of Jesus Christ. He suggested that despite this heritage, the proposed amendments threaten the autonomy of Christian institutions by permitting government-appointed authorities to assume control of their assets.

The bill itself seeks to establish a “Designated Authority” that would manage foreign contributions and assets created using such funds whenever an organisation’s FCRA registration ceases.

Importantly, the legislation specifies that if the assets include a place of worship, the authority must ensure that its religious character is preserved. This clause appears designed to address concerns about interference in religious practice, though critics argue it does not prevent state control of property.

Another notable provision is the reduction of penalties for violations of the Act. The maximum punishment would be lowered from five years’ imprisonment to one year, signalling a softer approach to enforcement even as the government expands its powers of oversight.

Supporters of the bill argue that this balance reflects an effort to regulate foreign funding without imposing excessive criminal liability.

The Ministry of Home Affairs has reported that between 2019 and 2022, 13,520 organisations received foreign contributions amounting to ₹55,741 crore. As of 15 July 2026, the FCRA portal shows 14,449 active certificates, 22,498 cancelled, and 15,212 deemed expired. These figures highlight the scale of foreign funding in India and the potential reach of the proposed amendments.

Civil society groups and international observers have expressed concern that the bill could be used to target minority institutions, particularly Christian and Muslim organisations, by vesting their assets in the state.

Policy briefs from international watchdogs have warned that the legislation represents a sweeping expansion of government authority, with provisions that may even apply retrospectively to assets of organisations that ceased operations before the bill’s passage. Critics argue that this undermines due process, as asset transfers could occur without judicial oversight.

The Modi government is expected to introduce the bill in the Lok Sabha during the current session. While supporters frame it as a necessary safeguard against misuse of foreign funds, opponents see it as a tool of political repression.

The controversy has already drawn international attention, with US lawmakers and advocacy groups warning that the measure could damage India’s reputation as a democracy and complicate its strategic partnership with Washington.

Agencies