Orbán’s fight against NGOs - Q&A
Lili Rutai answers common questions about Fidesz’s new Sovereignty Protection Bill.
Shortly before midnight on Tuesday, May 13, a Hungarian MP proposed a new bill modelled after Russia’s foreign agent law. Submitted by János Halász of the ruling Fidesz party, the bill on "transparency in the public sphere" would require any organisation or political party deemed a threat to Hungary’s “sovereignty” to disclose foreign funding and comply with strict restrictions.
It would give power to the Sovereignty Protection Office (SPO), a governmental body set up after the Parliament passed the 2023 sovereignty protection law.
In the latest step in Fidesz’s crackdown on civil society, the bill would stifle critical NGOs, independent media outlets, and opposition parties. These entities would face penalties, restrictions on fundraising, bureaucratic hurdles, possible loss of revenue or bans.
While it ostensibly targets only financial transparency, critics warn the law will restrain Orbán’s opponents and critics in the lead-up to the 2026 general election.
How will this affect organisations?
It’s largely unclear how the law will be used, if implemented by the parliament. In the worst-case scenario, organisations and parties unfavourable to Orbán will be added to a list set up by the Sovereignty Protection Office.
Once there, these entities will have to navigate extensive bureaucratic requirements regarding their funding coming from outside of Hungary, including donations from dual Hungarian citizens, foreign states, or organisations registered or headquartered abroad.
If not properly declared at the Office for Combating Money Laundering and the Financing of Terrorism, which operates under the National Tax and Customs Administration (NAV), the organisations will be denied access to these funds, and could be forced to pay 25 times the sum to the National Cooperation Fund. Failing to comply with this fine within 15 days, the tax authority may ban the organization from "continuing to engage in activities that influence public life."
Authorities will also be allowed to access reports, receipts, investigation materials, accounting records, submissions, documentation of transactions, minutes, auditor's comments, and internal audit reports from these organisations.
The organisations on the list will not be able to benefit from the 1% programme, where Hungarian taxpayers are allowed to contribute 1 per cent of their tax revenue to organisations. Their leaders will have to claim their income, also a lengthy and meticulous paperwork that was previously only requested of politicians, or face fines.
Why is it so bad?
If accepted, the bill will impose a significant bureaucratic burden on organisations, many of which are already understaffed and financially strained.
Smaller NGOs, especially those focused on local issues but reliant on EU funding through tenders, may lack the resources to comply with the new regulations and could be forced to shut down. Over time, this could create a chilling effect, deterring people from supporting or establishing new civil society organisations and independent media outlets.
What do organisations say?
Most larger organisations vowed to continue operating despite the challenges.
“The consequences reverberate beyond Hungary’s borders and are already spreading. This model of illiberal repression is designed to be exported. The European Union must act decisively before this anti-democratic playbook becomes the new norm,” said Márta Pardavi, co-chair of the Hungarian Helsinki Committee. “If this bill passes, it will not simply marginalise Hungary’s independent voices—it will extinguish them.”
"This is an all-out attack," Tivadar Hüttl, one of the independent outlet Telex's lawyers, said.
“We are here to stay - Hungary is our country. We do not ask for permission to help those in need, to act for the common good, to write the news, to stand up for those in need, to participate in shaping our own lives,” a joint statement by dozens of independent NGOs highlighted. “And we do not ask for permission to criticise when we disagree with something.”
Why now?
Orbán initially promised a “spring clean” for Easter, which passed without an incident. The timing of this bill comes as Orbán’s endorsement of the Romanian far-right, anti-Hungarian candidate Geroge Simion, which caused outrage across Hungary.
Faced with the growing popularity of Péter Magyar, Fidesz is likely to intensify its tactics in the year leading up to the election. This is the first time an opposition party has matched and surpassed Fidesz’s popularity, and Magyar, who is currently walking across the country, is forecast to gain more voters.
We can already see that war and national sovereignty will be central topics in the 2026 election.
Will it pass through Parliament?
Yes. According to a schedule, it should be debated in June, unless Fidesz creates a faster process. Then, the two-thirds Fidesz-KDNP majority will probably push it through quickly. The President could then technically veto it; but this scenario is unlikely.
Even if it doesn’t appear on the Parliament’s agenda, either because of the national outrage or internal discussions in Fidesz, the proposal will remain in place, and the government will be able to take it out of a drawer anytime they need it.
Another question is whether, and how, it will be enforced. It’s unclear how the Hungarian state tax authorities will cope with the extra workload of potentially checking every donation.
Can the EU do something?
In theory, yes. But in practice, it might take some time, even a few months with frozen funds could prove fatal for Hungarian media organisations and human rights watchdogs.
The European Court of Justice has condemned Hungary’s 2017 civil law, which was similar, prompting Fidesz to revoke the law. This time, however, we are in a much more tense environment. Since 2017, the Orbán government has been increasingly disregarding the EU, ignoring their demands, as well as demonising “Brussels”. Most recently, the EU has ordered Hungary to pay a penalty due to its treatment of refugees. According to the latest figures, Hungary owes over 500 million Euros in fines.
Can this proposal backfire?
In the past week, we have seen at least two protests in Budapest, one of them with tens of thousands of people in attendance. Media organisations created unprecedented solidarity, as media outlets 24, HVG, Telex, 444 and YouTube channel Partizán hosted an array of journalists from various outlets, as well as NGO workers, influencers and experts.
There is little doubt that these organisations have become more active in fundraising, and people are more willing to contribute. The timing also coincides with the deadline for the 1% tax contribution programme, which will likely prompt even more people to donate to these NGOs.
Yet, the repercussions far outweigh the advantages.
Lili Rutai