Hungary's ruling Fidesz has unveiled a draft law that critics warn could cripple the country's remaining independent media outlets and civil society organisations, deepening fears over democratic backsliding and growing estrangement from the EU. The bill, submitted to parliament by his ruling Fidesz party late on May 13, marks a significant escalation in efforts to curb critical voices ahead of next year's national elections and was compared to Russia's "foreign agent" law.

The draft legislation would empower the controversial Sovereignty Protection Office to blacklist media outlets, NGOs and other legal entities that receive overseas funding and are deemed to "threaten Hungary's sovereignty".

Listed organisations would face intrusive financial monitoring, severe fines, up to 25 times the amount received, and possible dissolution.

Once on the blacklist, such groups would be banned from receiving personal income tax donations, a key funding channel, and would face onerous administrative burdens. They would be required to obtain legally binding declarations from all donors stating their support is not of foreign origin, a burdensome and costly procedure.

The bill, widely compared to Russia's "foreign agents" law, follows Orban's broader campaign against perceived foreign influence and comes less than a year before national elections, where he faces an unexpectedly strong challenge from former ally Peter Magyar.

The bill makes no difference if the funds were provided from the EU under transparent tenders, if the activities of organisations are deemed to threaten sovereignty. Furthermore, executives, founders and supervisory board members of listed entities would also be compelled to submit asset declarations and be treated as politically exposed persons.

The proposed legislation allows for fines amounting to 25 times the value of any allegedly illicit foreign donation, payable within 15 days, with seized assets transferred to the government's National Cooperation Fund.

The Sovereignty Protection Office (SPO) would also be authorised to conduct on-site inspections, including seizing and copying documents, computers and data carriers, with police support if necessary.

Rights groups warned that the proposed law could render independent journalism and advocacy work "legally impossible", while EU legal experts say it risks breaching core bloc principles. The European Commission has already launched proceedings against the SPO itself, but has yet to comment on the recent developments.

What is more worrying, according to critics, is that the bill defines sovereignty threats in sweeping terms, including activities that portray Hungary's constitutional identity, Christian culture, traditional family roles or cross-border Hungarian unity in a negative light. Any act capable of influencing public opinion or democratic debate could qualify.

The MP submitting the bill justified the proposal by citing past "serious abuses" allegedly infringing on national sovereignty.

Prime Minister Viktor Orban has frequently accused critical civil society groups, independent media and judicial reform advocates of serving foreign interests, and his combative rhetoric has intensified since Donald Trump's re-election campaign gained momentum, emboldening Orban's push to align Hungary with illiberal, nationalist forces abroad.

In a speech on a national holiday on March 15, Hungary's veteran leader portrayed his political adversaries as foreign-backed "Brussels lackeys" who must be "swept away" in a "spring cleaning." The country's veteran leader framed domestic critics of his government as traitorous collaborators while positioning his administration as the defender of Hungary's sovereignty.

The bill has drawn immediate comparisons to Russia's "foreign agent" law, used by the Kremlin to shut down dissent. "This is a Russian-style law that could make independent journalism and advocacy work in Hungary impossible," said Gergely Karacsony, the mayor of Budapest.

Marton Tompos, an MP from the opposition Momentum party, warned it could be used to "shut down every media outlet and NGO involved in public affairs." Zoltán Lakner, a prominent political scientist, described the bill as a turning point. "This is the first written evidence of Huxit". "We have essentially removed ourselves from all European legal frameworks on fundamental rights."

Lakner argued that the government no longer merely rejects certain EU rules; it is now challenging the legitimacy of European law altogether. "This is not just another step on the road; it is a departure document," he said, warning that it could accelerate efforts in Brussels to bypass the Hungarian government when allocating EU funds.

Hungary's largest journalists' association, MUOSZ called the legislation a "brutal and sweeping attempt" to silence independent journalism under the guise of protecting national sovereignty. It urged Hungarian citizens, MPs and the country's president to oppose the legislation, warning that "the survival of the free press" is at stake.

The bill could allow authorities to target virtually any critical media outlet or NGOs. While pro-government outlets benefit from hundreds of billions of forints in public advertising and indirect support, MUOSZ noted that independent journalism in Hungary often relies on modest foreign grants or small private donations, including from diaspora communities, support the new law seeks to eliminate, it added.

According to Miklos Ligeti, legal director of Transparency International Hungary said the draft legislation is "somewhat worse than the Russian regulations," as it appears designed to financially cripple dissenting organisations entirely. Unlike in Russia, he argued, the Hungarian version effectively offers no legal recourse and seeks to paralyse civil society through punitive administrative control. "At first glance, it doesn't even resemble a legitimate legal text," he noted.

He suggested that the government's decision to rush through the bill may indicate growing anxiety within the ruling elite and could be a strategic distraction from controversies surrounding the central bank's foundations.

The crackdown comes amid rising political pressure on Viktor Orban, whose Fidesz party has been trailing in recent opinion polls behind the upstart Tisza party, led by former Fidesz insider Péter Magyar. While elections are not due until spring 2026, Orban is already attempting to consolidate control over the political landscape and limit access to foreign support for opponents.

Although previous Fidesz-backed NGO laws were struck down by the European Court of Justice for violating EU principles, this latest proposal is more sweeping in scope and more punitive in its structure. 

The European Commission has yet to comment publicly on the draft, but legal experts say the legislation is almost certain to trigger a fresh round of infringement proceedings and could deepen strained relations with Brussels.