The Tamil Nadu Legislative Assembly has unanimously passed a resolution opposing the Central Government’s Foreign Contribution (Regulation) Amendment Bill, 2026. This decision was made on August 11, with calls for the Union Government to withdraw the proposed legislation in its current form.

The resolution was moved by Tamil Nadu Minister Rajmohan, who expressed concerns about the potential negative effects the bill could have on various sectors. Educational institutions, hospitals, and elderly care homes receiving foreign contributions were highlighted as particularly vulnerable.

Minister Rajmohan articulated that while the Union Government has framed the bill to regulate foreign aid, its provisions might detrimentally impact institutions that are run by minority organisations and charitable outfits.

Concerns Raised Over Regulatory Procedures

During the discussion in the Assembly, Rajmohan raised objections to specific provisions. He noted that the bill allows the government to take control, manage, or sell the assets of charitable organisations if there are issues with their FCRA registration.

According to Rajmohan, affected institutions should be given a chance to present their cases before any such action is taken. He emphasised that if there are no charges levied against an institution, it should not be subject to government takeover under the FCRA.

The Minister also highlighted that regulatory processes concerning educational, healthcare, and social welfare institutions must align with constitutional principles. He argued that the measures should ensure that these organisations continue to function effectively without undue governmental interference.

State’s Stand on National Security and Consultations

While the Tamil Nadu government opposes certain aspects of the FCRA amendments, Rajmohan asserted the state’s commitment to national security. He acknowledged the necessity of preventing misuse of foreign contributions, stating that the government supports measures aimed at this goal.

The Minister reiterated that the state’s objections focus on safeguarding the operations of genuine educational and charitable institutions. This includes ensuring that legitimate organisations are not adversely affected by the proposed changes.

After thorough discussion, the Assembly formally urged the Union Government to withdraw the amendment bill. It was asserted that comprehensive consultations should be held with state governments and stakeholders from various sectors before any further action is taken.

The Tamil Nadu government also called for safeguards that adhere to principles of natural justice, proportionality, property rights, legitimate expectations, and federalism. These safeguards aim to maintain transparency and accountability in receiving and utilising foreign contributions.

Concerns were particularly voiced regarding provisions that would affect organisations facing cancellation, non-renewal, or surrender of their FCRA registration. Tamil Nadu contended that amendments to the FCRA should balance national security and regulatory oversight while upholding the constitutional rights of charitable and welfare institutions.

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