The bill, titled “On the Transparency of Public Life,” was introduced late Tuesday by János Halász, a Member of Parliament for the ruling Fidesz party.

According to the proposal, if the newly established Sovereignty Protection Office determines that a foreign-funded organization’s activities pose a threat to Hungary’s sovereignty, it may recommend that the government place the organization on an official registry. Listed organizations would no longer be allowed to collect 1% personal income tax donations and would be required to request legally binding private declarations from supporters affirming that no foreign funds are involved.

The legislation stipulates that all foreign funding could be considered a potential risk to national sovereignty, including funds obtained through transparent application processes, such as European Union grants. In addition, leaders, founders, and supervisory board members of listed organizations would be classified as politically exposed persons and would be required to file asset declarations.

Organizations found to have accepted foreign funding despite restrictions would face fines equivalent to 25 times the value of the donation, to be paid within 15 days. Assets from dissolved organizations and proceeds from fines would be transferred to the National Cooperation Fund.

The proposal would also grant the Sovereignty Protection Office powers to conduct on-site inspections at affected organizations, allowing authorities to review documents, electronic devices, and make copies, with the option to request assistance from the police.

The bill defines threats to sovereignty broadly, listing activities that could harm Hungary’s independent democratic legal order, national unity, family and traditional gender values, public security, or constitutional identity, among others. Influencing public opinion or democratic debate could also be interpreted as endangering sovereignty.

If passed, the legislation would come into force three days after promulgation. However, restrictions on collecting 1% tax donations would only apply from the following tax year. The proposal does not specify a deadline for the Sovereignty Protection Office to submit recommendations for listing organizations.

In justifying the bill, Halász cited “serious abuses that have severely violated Hungary’s sovereignty” in recent years and referred to the outcomes of national consultations conducted by the government.

Budapest Mayor Criticizes Bill

Budapest Mayor Gergely Karácsony criticized the proposal in a Facebook post, describing it as similar to measures seen in Russia.

“Another step forward on the Putinist path – but not in Budapest! Budapest’s duty is to protect, support, and offer partnership to the civil organizations attacked by the government.
Threats, intimidation, blacklisting, and making life impossible—the government wants to hand a legal club to its new version of the ÁVH [the name of the State Protection Authority in the communist era] to harass independent civil organizations, independent media, independent creative communities, and human rights advocates who hold those in power accountable,” he wrote.

He also claimed that the submitted bill follows the Russian model, and is about the fear of losing power, revenge, and pettiness.

“In recent years, Budapest has supported civil organizations and independent creative communities as much as possible. Together with them, we will find a way to protect our city and our communities from the revenge of a government sliding into Putinism,” he added.