Hungary Delays Controversial Bill on Foreign-Funded Organizations Amid Criticism

Hungary's ruling Fidesz party has postponed the parliamentary debate and vote on a contentious bill aimed at increasing transparency of foreign-funded organizations. Originally scheduled for mid-June, the vote has been deferred to the autumn session due to a substantial number of proposed amendments.

The proposed legislation, introduced on May 14, 2025, seeks to identify and potentially restrict or ban groups receiving foreign funding if they are deemed threats to national sovereignty or culture. This move has ignited significant criticism from domestic civil society organizations and international bodies, raising concerns about its implications for democracy and human rights in Hungary.

The bill would empower the Sovereignty Protection Office (SPO) to list and monitor organizations considered threats to Hungary's sovereignty, particularly those receiving foreign funds. These groups could face restrictions if their actions are perceived as undermining Hungary’s democratic character, constitutional identity, or Christian values. Specific activities, such as challenging traditional family structures or gender identities, could qualify as threats under the bill. Entities listed could have their bank accounts scrutinized, foreign funds blocked, and face fines up to 25 times the amount of foreign funding received. Non-payment within 15 days could result in forced closure.

Over 60 Hungarian media outlets, think tanks, and rights groups have condemned the bill as an "authoritarian" measure that undermines democracy. The Council of Europe’s Commissioner for Human Rights and UN experts have called for the bill's rejection or revision, citing human rights concerns.

Prime Minister Viktor Orbán, in power since 2010, has framed the crackdown on foreign-funded NGOs, media, and opposition figures as a sovereignty issue. He argues that foreign-funded organizations attempt to destabilize his government and has vowed to make their operations legally impossible. Parliamentary leader Máté Kocsis emphasized the need to reassess legal tools after reviewing numerous proposals.

This is not the first instance of Hungary targeting foreign-funded organizations. In 2017, Hungary passed a law requiring NGOs receiving foreign funding to register and label themselves as "foreign-supported organizations." The law was criticized for stigmatizing NGOs and was eventually repealed in 2021 after the European Court of Justice ruled it violated EU law. In 2023, the Sovereignty Protection Office was established to investigate entities influenced by foreign funding, drawing criticism for potentially violating EU democratic norms.

The postponement of the vote indicates internal and external pressures on the Hungarian government. The high volume of proposed amendments suggests significant debate within the government and parliament. Continued criticism from international bodies may affect Hungary's standing within the European Union and could lead to further diplomatic tensions. If passed, the bill could severely restrict the operations of NGOs and media outlets, leading to a chilling effect on free speech and association.

The postponement of the vote on Hungary's foreign-funded organizations bill reflects the complex interplay between national sovereignty, democratic principles, and international relations. As the autumn session approaches, the developments surrounding this legislation will be crucial in determining the future landscape of civil society and political freedom in Hungary.