A new series of amendments proposed by the governing Fidesz party in Hungary aims to further tighten regulations concerning foreign-funded civil organizations and media.

This legislative initiative is part of a broader transparency bill discussed in a parliamentary committee on May 20, 2025. Notably, the newly proposed changes would allow the government to retroactively revoke one percent tax donations already pledged this year to organizations that have been placed on a designated list by the Sovereignty Protection Authority.

As outlined in the amendments, the government would have the authority to reject requests for disbursement of these tax donations if the beneficiary organization is included on the government's list by August 1. This marks a significant shift from the original draft of the bill, which stipulated that the prohibition on tax donations would only take effect for the tax year following the law's enactment, which would be in 2026. Under the proposed changes, organizations that fall under the restrictions would no longer receive funds already pledged before the legislative cut-off date.

Furthermore, the amendments detail that one specific organization, the Batthyány-Strattmann László Foundation for Healing, would receive any funds that are redirected as a result of these changes.

The foundation was established in January 2023 with the purpose of evaluating individual requests for support of certain medicines and medical devices.

In addition to these measures, the amendments also refine the definitions surrounding foreign funding.

Dual citizens, including Hungarians living abroad, would not be classified as foreign supporters.

This is a noteworthy adjustment, especially as Fidesz has publicly sought financial contributions from abroad through their official channels.

The legislation aims to develop a clearer framework for administrative sanctions, specifying that records of all administrative decisions involving sanctions will need to be documented in the Administrative Sanctions Registry.

Additionally, it stipulates that the law would come into effect not 15 days following its announcement, as initially proposed, but rather on the third day after its enactment.

The proposed modifications have drawn critical responses from opposition lawmakers.

Tordai Bence of the opposition stated that the entire legislative proposal should be discarded, calling it a severe attack on civil organizations and undermining taxpayers' rights to freely allocate their taxes.

László Rónai of the Democratic Coalition reiterated similar concerns, denouncing the amendments as a governmental maneuver to destabilize organizations viewed unfavorably by the ruling party.

This legislative initiative follows the introduction of a so-called 'undermining law' aimed at significantly complicating the operations of organizations funded from abroad.

Post-enactment, the Sovereignty Protection Authority would be empowered to recommend the inclusion of organizations on a list deemed as threatening Hungary's sovereignty based on subjective assessments.

Once an organization is listed, they would be prohibited from collecting one percent tax donations and would be required to obtain comprehensive written declarations from every donor that no foreign funding is accepted.

The law also provides a framework for significant penalties for violations, including fines up to 25 times the amount of any foreign funds received, with collected fines being diverted to the National Cooperation Fund.

Furthermore, a provision is included to allow on-site inspections of listed organizations by relevant authorities, enabling them to examine documents and electronic records, necessitating cooperation with law enforcement.

The legislation articulates broad criteria for what constitutes a threat to national sovereignty, including any activities that could be perceived to tarnish the image of Hungary’s democratic statehood or its constitutional identity.

Such definitions could encompass a wide range of advocacy and civil society activities, making compliance and operation for potentially affected organizations increasingly problematic.

The ramifications of these proposed amendments are likely to shape the landscape of civil society in Hungary significantly, raising concerns over the implications for freedom of expression and nonprofit management in the country.