Hungary’s ruling Fidesz party, led by Prime Minister Viktor Orbán, has introduced a controversial foreign funding bill that critics say will “effectively outlaw free press” by targeting independent media and civil society organizations receiving foreign funds, including EU grants. The legislation, unveiled on May 13, 2025, has triggered widespread condemnation from European institutions, press freedom watchdogs, and journalists, who warn it represents the most severe attack on media pluralism in Hungary in years and a dangerous precedent within the European Union.
Hungary’s Foreign Funding Bill: An Overview
The bill, officially titled “On the Transparency of Public Life,” aims to establish a government blacklist of organizations—including media outlets and NGOs—that receive foreign funding and are deemed a threat to Hungary’s sovereignty. It applies to any legal entity influencing public opinion or democratic debate, effectively encompassing independent media critical of the government.
Key Provisions and Impact
- Foreign Funding Threshold: The bill targets any funding from abroad, including EU grants or donations as small as €5.
- Blacklist and Sanctions: The Sovereignty Protection Office (SPO), a government body created in 2023 and led by a Fidesz loyalist, would have the authority to recommend blacklisting organizations it considers undermining Hungary’s democratic character, constitutional identity, or traditional family values.
- Financial Penalties: Blacklisted entities would lose access to vital funding sources such as the 1% voluntary tax donations from Hungarian citizens, effective one year after the law’s adoption. Non-compliance with funding rules could result in fines up to 25 times the amount of foreign funding received.
- Potential Closure: Repeat violations could lead to forced shutdowns of media outlets or NGOs.
- Increased Surveillance: The SPO would gain powers to search newsrooms, access documents, and monitor financial transactions with police assistance. Executives and editors of blacklisted outlets would be required to declare their assets publicly, similar to politicians.
- Retroactive Funding Assessments: The law permits retroactive scrutiny of whether media served foreign agendas, potentially forcing repayment of funds.
This legislation is widely seen as a direct attack on the financial viability and independence of Hungary’s remaining free press, which has already been under pressure for over a decade.
Reactions from Media Freedom Organizations and EU Bodies
International Press Institute (IPI) and Media Freedom Rapid Response (MFRR)
IPI and MFRR have described the bill as the most serious threat to Hungarian independent media in years and the first “foreign agent”-style law within the EU, marking a significant step in Hungary’s democratic decline. They have called for immediate legal challenges at the European Court of Justice (ECJ), urging the European Commission and Council to act swiftly to prevent the law’s implementation.
Reporters Without Borders (RSF)
RSF alerted the European Commission that the bill would “starve the free press to death” by cutting off critical financial lifelines and imposing heavy sanctions on media outlets receiving foreign funds, including EU support2.
Committee to Protect Journalists (CPJ)
Tom Gibson, CPJ’s Deputy Advocacy Director for the EU, condemned the bill as a “chilling signal” of the government’s intent to eliminate independent media ahead of Hungary’s 2026 parliamentary elections. He emphasized that the law “fundamentally undermines democracy” and called on EU leaders to act decisively.
International and European Federation of Journalists (IFJ/EFJ)
The IFJ/EFJ strongly condemned the bill, highlighting its inspiration from Russia’s “foreign agent” law and warning that it targets independent media and NGOs reliant on European and international funding. They urged the EU to impose sanctions on Hungary for this attack on the rule of law.
Journalists and Editors
Over 80 editors from leading European news outlets signed a petition opposing the legislation, warning it would force many independent journalists into exile or silence through financial strangulation and legal harassment1.
Hungary’s Media Freedom in Context
Hungary is widely regarded as the EU’s worst country for media freedom. According to the 2024 Reporters Without Borders World Press Freedom Index, Hungary ranked 67th out of 180 countries, a steep decline from 40th place a few years prior. The government has systematically captured public media, regulatory bodies, and used smear campaigns to silence critics. The Sovereignty Protection Office has played a central role in these efforts since its establishment in 2023.
The new bill represents a further escalation in the government’s campaign to control the media landscape by undermining the financial foundations of independent outlets and NGOs, many of which rely on EU grants and foreign donations to operate.
Implications for EU Values and Democracy
The bill directly contradicts the European Union’s core values of media freedom and pluralism as enshrined in the EU Charter of Fundamental Rights. By targeting funding from within the EU, it challenges the principle of the EU as a single market and shared community.
Experts warn that this legislation could enable a “Russian-style” strangulation of independent media from within the bloc, setting a dangerous precedent for other member states. The European Council is expected to discuss Hungary’s rule of law situation, including this bill, at its meeting scheduled for May 27, 2025.
What’s Next? EU and Journalists’ Response
Media experts and journalists are preparing to fight back through legal challenges and international advocacy. A briefing featuring Hungarian journalists and media experts is scheduled for May 26, 2025, to analyze the bill’s impact and strategize responses1.
The International Press Institute and other organizations urge the European Commission and Council to:
- Immediately assess the bill’s compatibility with EU law.
- Initiate legal proceedings at the European Court of Justice.
- Consider interim measures to suspend the law’s enforcement until a ruling is made.
- Impose sanctions on Hungary if the government persists in undermining democratic norms.
Hungary’s foreign funding bill represents a critical threat to press freedom and democratic values within the EU. By targeting independent media and NGOs that receive foreign funding, including essential EU support, the legislation aims to silence dissent and consolidate government control over public discourse. The broad condemnation from media freedom organizations and calls for urgent EU intervention underscore the high stakes for democracy in Hungary and the European Union as a whole.
