FCRA Bill 2026: India’s US envoy Vinay Kwatra shatters ‘myths’ on foreign funding, NGO assets and religious organisations

India's Ambassador to the US Vinay Mohan Kwatra has sought to clear the air around the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, saying several concerns over the legislation stem from what he termed “misunderstandings” in the media and civil society.

In a detailed post on X, Kwatra addressed questions around foreign funding, assets created from overseas contributions and the treatment of religious organisations, arguing that the proposed changes are aimed at strengthening transparency and governance rather than restricting legitimate charitable activity.

What happens to NGO assets after FCRA cancellation?

A key issue addressed by Kwatra was the treatment of assets belonging to organisations after their FCRA registration is cancelled or surrendered.

Kwatra said the existing framework provides for foreign contributions and assets created from such contributions to vest with a state government authority in certain circumstances. The proposed Bill, he said, would introduce a designated authority to protect those assets.

“What the 2026 Bill adds is a designated authority to safeguard those assets — and a way back,” Kwatra said.

He further said organisations that regain their FCRA registration would be able to reclaim their assets and unused funds.

“All assets and unused funds are returned in full,” Kwatra said.

‘The Act applies uniformly’ across religions

Kwatra also addressed concerns that the proposed amendments could disproportionately affect religious or minority organisations.

“The Act applies uniformly to all organisations regardless of religion, community or ideology,” he said.

On properties associated with places of worship, Kwatra said the proposed framework would provide for continuity of religious activities.

“Where a cancelled association has created property connected to a place of worship, that property goes to another FCRA-registered association of the same faith to ensure continuity of worship,” he said.

Foreign contributions to India have risen

Kwatra also cited data to argue that India continues to receive substantial overseas funding. According to figures referenced in his post, foreign contributions received by registered organisations rose from around $1.2 billion in 2010-11 to $2.67 billion in 2024-25.

He said India has more than three million NGOs, but only 14,450 are registered under the FCRA.

“FCRA does not stop anyone from accepting foreign charity, research grants or humanitarian aid,” Kwatra said.

Kwatra also pointed to foreign-funding regulatory frameworks in the US, Australia, Canada and the UK, arguing that regulation and disclosure of overseas financial flows are not unique to India.

He described the proposed amendments as a move towards “more transparency, better governance, clearer rules”, while stressing that regulation of foreign financial flows remains linked to national security and sovereign policy.