A new Hungarian law threatens unprecedented restrictions on media, NGOs, and online creators. If passed, anyone receiving foreign money—including EU grants or audience donations—could face heavy fines. Critics warn this could severely undermine independent voices and mark a decisive blow to Hungary’s already fragile public sphere.

Foreign Agent Law

On 13 May, a member of the Hungarian Parliament submitted a draft law aimed at increasing state control over journalists and NGOs. Earlier this year, Prime Minister Viktor Orbán promised an “Easter purge” — or a “cleaning” — which he appears to have taken seriously. The parliament will likely vote on the law in June; however, according to János Pócs, a member of the Hungarian Parliament from Orbán’s Fidesz party, the law may already be passed later this week.

The draft refers to “organizations financed from abroad by foreign interests” and “foreign-financed activist networks,” claiming they pose a threat to Hungarian sovereignty. It alleges these organizations push a political agenda while pretending to be ordinary entities. Companies found violating the new law would be placed on a list and face severe sanctions. The proposal was likely inspired by the Russian Foreign Agent Law. 

Setting up barricades

The draft clarifies that operating a business, even partially, with funds or donations received from abroad is prohibited. Companies caught violating this must pay a fine equal to 25 times the amount received. While the law aims to eliminate foreign influence, its definition of what constitutes such influence is vague.

According to the draft, “foreign support” includes any direct or indirect transfer of value to a Hungarian company — including EU funding. The law would sanction receiving money from foreign natural persons and even Hungarian dual citizens. In practice, this means the government would treat its own citizens living abroad as threats to national sovereignty.

A threat to press freedom

Hungarian journalists already face heavy restrictions, but this new law would make their work virtually impossible. The Hungarian media market is heavily distorted, with the government as its largest advertiser. However, this new proposal targets the press and NGOs more directly. 

Any organization receiving foreign funding, including from the European Union, would be placed on a list of potential threats to national sovereignty. Police could raid listed organizations without warning and search and copy their electronic devices. Furthermore, accepting any amount of foreign donations or funding would result in a fine 25 times the amount received.

The law outlines several scenarios in which companies might be listed, including “negative portrayals of the country’s independent, democratic, and Rule of Law-abiding character” or its “peace, security, and cooperation with other countries.”

It is evident that journalists critical of the government—or of Orbán’s increasingly close ties with Russia—are in the state’s crosshairs. If the proposal takes effect without major changes, any public expression of opinions opposing the government could be subject to sanctions. 

The Office for the Protection of Sovereignty

In 2023, a constitutional amendment enabled the creation of a new government agency: the Office for the Protection of Sovereignty. Initially, its purpose was unclear.

At first, the office produced reports on Hungarian organizations deemed threats to national security. The listed groups included independent media outlets, NGOs such as Transparency International, and even government-critical influencers. These reports were frequently criticized for being heavily biased and lacking factual basis.

Previously, the reports served only an advisory role for the government, similar to think tanks. However, if the proposal passes parliament, their function will become significantly more influential.

The proposal by Fidesz would grant the office the authority to decide which organizations are to be listed as spreading foreign influence. The vague and flexible language used in the legislation suggests the government could impose restrictive measures on virtually any organization it considers undesirable.

‘Declaration of war against the EU’

The relationship between Hungary and the European Union was already at an all time low, with the state having lost access to one billion euros in EU funds for Rule of Law violations. The newly proposed law goes even further, it clearly violates European Union standards. Tineke Strik, a Dutch MEP and Hungary’s rapporteur, stated:

“Viktor Orbán is starting an all-out war against civil society with this new law.” She described the move as “a declaration of war against the EU,” given that even EU funds would now be considered foreign interference.

On 27 May, the General Affairs Council will hold a hearing on Hungary’s Rule of Law situation. It is plausible that the GAC will move forward with the Article 7 procedure, which could result in the suspension of Hungary’s voting rights within the EU.

Eastern turn

While this law appears to target only the free press and civil society, deeper political motives may be at play. In 2026, Hungary will hold national elections, and restricting public discourse could help the current government maintain power. 

Recent polls show Orbán’s Fidesz party losing popularity, while his rival, Péter Magyar’s Tisza Party, has become the most popular choice among Hungarian voters. Under the new “Transparency of Public Life” proposal, spreading foreign influence can be heavily sanctioned—yet what qualifies is defined by a body closely tied to Fidesz.

Recently, Magyar released a leaked audio recording of Defense Minister Kristóf Szalay-Bobrovniczky, who claimed the military must prepare for war at the government’s request. This directly contradicts Viktor Orbán’s public statements, as the Prime Minister frequently accuses Brussels of promoting “war psychosis.”

In response, Orbán released a video accusing the Tisza Party of collaborating with Ukrainian secret services, claiming that foreign agents have infiltrated Hungarian politics. He closed the video by stating: “Neither Brussels, nor Kyiv can decide for the Hungarian people.” Given the law’s broad powers and vague language, it is plausible the government may use it to act against political rivals ahead of the elections.