Reported by
Hungary’s ruling Fidesz party, led by Prime Minister Viktor Orban, has introduced a bill targeting foreign-funded non-profits and civil society groups — drawing sharp criticism from human rights advocates and European Union politicians.
“Orban's new proposal for an anti-NGO law is a declaration of war on NGOs and independent media,” Dutch politician and MEP Tineke Strik told OCCRP on Thursday.
She warned the bill would effectively cut off all realistic sources of income for NGOs, making it impossible for them to continue their work to protect Hungarians and uphold the rule of law.
“At the same time, the law constitutes a frontal attack on the E.U.: even E.U. financing—as well as UN financing, and that of any other international organisation, including those Hungary is a member of—is seen as foreign interference,” she said.
Fidesz lawmakers submitted the draft legislation, titled On the Transparency of Public Life, to parliament on May 14. If enacted, it would grant broad investigative powers to the newly established Sovereignty Protection Office (SPO), allowing it to scrutinize civil society groups, media outlets, and public figures receiving foreign funding—including EU grants. The SPO could then place those entities on a public blacklist.
Blacklisted organizations would be barred from participating in Hungary’s popular “1 percent tax donation” program, which lets citizens allocate a portion of their income tax to NGOs. They would also be required to prove all funding originates within Hungary, and their leaders would face strict asset disclosure rules.
The SPO would be authorized to inspect offices, seize documents and electronic devices, and impose fines of up to 25 times the amount of foreign funding received. Targets would have just 15 days to pay or risk being shut down.
The bill defines “threats to national sovereignty” in broad terms—including attempts to influence public opinion, promote democratic debate, or challenge “Christian values” and traditional family roles. Expressing support for same-sex marriage or gender equality could also qualify as grounds for designation.
According to Hungarian political analyst Andras Toth-Czifra, such a bill, if adopted, could be “the government’s most blatantly open act of questioning the principles of Hungary’s E.U. membership.”
“If Hungary was not already a member, but a candidate for E.U. membership and the Hungarian parliament adopted such a draft, it would likely prevent the country’s E.U. accession,” he told OCCRP.
Transparency International Hungary also condemned the bill, describing it as “an authoritarian attempt to retain power” and a direct threat to Hungary’s remaining democratic institutions.
However, Fidesz MP János Halász, speaking for the party, said the bill is necessary due to “abuses that seriously violate Hungary’s sovereignty.”
Orban has echoed similar rhetoric in recent speeches. In March, he warned of a “shadow army” of foreign-backed activists, journalists, and judges allegedly seeking to undermine the state. He referred to his political opponents as “insects” and hinted at a sweeping “spring cleaning.”
The Sovereignty Protection Office was created in December 2023. The European Commission has already launched an infringement procedure over the SPO law, warning it may violate core E.U. principles.
Toth-Czifra said the bill would establish opaque mechanisms of control, allow authorities to classify E.U. funding as “foreign,” and empower a pro-government body to silence critical media and NGOs ahead of the 2026 elections.
Critics argue it would further isolate Hungary within the E.U. and deliver a major blow to its embattled civil society.
Strik urged swift EU action ahead of the May 27 Council hearing.
“The Commission needs to stop this law as quickly as possible,” she said.
“Next to starting new infringement procedures, which is too lengthy a process to counter this law now, the Commission needs to ask for interim measures in the ongoing infringement case on the ‘Law on the Defense of National Sovereignty,’ and needs to take Hungary back to the Court of Justice of the EU for non-compliance in the infringement procedure on the 2017 NGO Law,” Strik concluded.
This story was updated with comments by Tineke Strik and Andras Toth-Czifra.
