On May 13, 2025, an MEP of the ruling party introduced a bill reminiscent of Russia’s “foreign agents” legislation that would severely restrict organizations receiving funding from abroad. The proposal, titled “On transparency in the public sphere,” would grant Hungary’s Sovereignty Protection Office sweeping powers to target independent organizations deemed threats to national sovereignty by placing them on a “list”.
Key Provisions of the Proposed Law
Under the bill, if the Sovereignty Protection Office determines that a foreign-funded organization is a threat to Hungary’s sovereignty, it can propose that the government put that organization on a special list by decree. Organizations added to this list would face significant restrictions:
- Mandatory asset declarations from senior officers, founders, and oversight committee members;
- May only receive foreign funding with the permission of the anti-money laundering authority;
- Loss of eligibility to receive 1% tax donations from citizens;
- Classification of organization leaders as “politically exposed persons”
- Requirement to obtain a “private document with full probative force” from all donors (including natural persons, legal persons or any organization) certifying funds did not originate abroad
The bill defines any funding coming from outside Hungary as a potential threat to sovereignty—even funds received through EU tenders or donations as small as 5 EUR from private individuals.
Broad Definition of “Sovereignty Threats”
Any organization that threatens Hungary’s sovereignty by engaging in an activity that is aiming to influence public life and is supported by foreign funding falls under the scope of the bill. The bill employs deliberately broad language to define what constitutes a threat to Hungary’s sovereignty: Any activity financed by foreign funding that “harms or portrays in a negative light” the following values listed in the Fundamental Law would qualify:
- The country’s independent, democratic and constitutional nature;
- The unity of the nation and its responsibility for Hungarians living beyond the borders;
- The primacy of marriage, family and biological gender;
- Peace, security and cooperation with other countries;
- The country’s constitutional identity and Christian culture.
Particularly concerning for civil society and media organizations, the proposal specifically targets activities “capable of influencing public opinion” or “influencing the will of voters or democratic debate.”
Harsh Penalties and Enforcement
Financial institutions are required to monitor the financial activities of the listed organizations.
Foreign funding that–according to the anti-money laundering agency–meets the criteria of “aiming to influence public life” will be transferred back to the donor.
Organizations found accepting foreign funding without permission would face severe consequences:
- Invasive on-site inspections where officials may examine and confiscate all documents, computers, and data storage devices by the anti-money laundering authority with the assistance of the Police, if necessary.
- Fines equivalent to 25 times the amount received, payable within 15 days
- Potential dissolution with assets transferred to the government-controlled National Cooperation Fund.
The anti-money laundering agency cooperates with multiple state institutions and financial institutions. There is no legal remedy against its decisions.
Context
The legislation follows months of escalating attacks against independent organizations ahead of the general elections to be held in April 2026. With President Trump taking office in January 2025, the ruling elite intensified its intimidation campaigns including public speeches by Prime Minister Orban in which he called independent journalists, civil society and oppositional politicians “bugs” to be “wiped out”, constitutional amendments to restrict the right to assembly and to enable the suspension of citizenship, and smear campaigns by the Sovereignty Protection Office and Fidesz representatives.