The Legislative Assembly of El Salvador has approved a controversial Foreign Agents Law that imposes a 30% tax on foreign donations to non-governmental organizations (NGOs) and gives them 90 days to register with the government.
The law, which was passed with 57 votes in favor, aims to regulate the activities of individuals and organizations financed or controlled by foreign entities operating within the country.
The bill, which was presented by the Executive Branch and amended following a request from Christian Guevara, leader of the Nuevas Ideas party, was added to the agenda during the 56th plenary session.
The new legal framework requires all natural or legal persons, whether domestic or foreign, who conduct activities within El Salvador that align with or are funded by foreign principals, to comply with the law.
The law’s approval, however, was met with fierce debate among political parties, with opposition lawmakers from ARENA, and VAMOS voicing strong objections. All three opposition representatives voted against the bill.
Deputy Guevara defended the law, stating that many NGOs had previously received public funds without providing transparency or accountability.
“In the United States, the FARA law, enacted in 1938, serves a similar purpose to prevent foreign interference in the country’s democracy,” Guevara remarked.
Under Article 6 of the new regulations, the Ministry of the Interior and Territorial Development will establish a “Registry of Foreign Agents,” and Article 24 stipulates that NGOs must complete registration within 90 days of the law’s enactment.
Suecy Callejas, a representative from the Nuevas Ideas party, emphasized that this law fills a void, stating that El Salvador had lacked a legal framework to regulate foreign-funded activities within the country.
However, the bill’s detractors, including Claudia Ortiz from the VAMOS party, argue that it threatens democratic freedoms and equates to “authoritarian control and censorship.”
Ernesto Castro, the President of Congress, countered these concerns, asserting that the legislation seeks to formalize NGOs’ activities and bring them under legal oversight.
Meanwhile, Francisco Lira of the ARENA party accused the government of using the law to suppress criticism and silence opponents.
The passage of this law marks a significant shift in El Salvador’s approach to foreign influence and the operations of NGOs within its borders.