Patrick Gaspard, the OSF's president, mentioned the federal government has "denigrated and misrepresented our work and repressed civil society for the sake of political achieve, utilizing techniques unprecedented within the historical past of the European Union". The law was termed the "Stop Soros" bill.
The legislation, invoking national security interests, would block any organization from advising or representing asylum seekers and refugees without a government license.
The bill would allow the interior minister to ban any NGOs active in the immigration field deemed to pose a "national security risk".
George Soros's Open Society Foundations, one of the world's biggest financiers of non-governmental organizations, will leave Budapest in response to a crackdown by Hungary's government that has become a focal point in a clash of democratic values in Europe.
Orban says Soros is out to undermine Europe's cultural identity while the billionaire has accused him of running a mafia state.
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PM Viktor Orban has repeatedly slammed the tycoon for meddling in the nation's internal affairs.
A Hungarian government billboard featuring George Soros, with the words translated to "Don't let George Soros have the last laugh" is seen at a transit stop in Budapest on July 6, 2017.
The theme of thwarting Soros's alleged efforts to encourage immigration dominated the election campaign during which Orban said some 2,000 "mercenaries" paid by Soros were working in Hungary. The group now has annual expenditures of over $940 million, operates in over 100 countries across the globe, with 26 national and regional foundations and offices.
The campaign was criticized in the Hungarian Jewish community as having anti-Semitic overtones. The Central European University, a graduate school started by US billionaire George Soros, said yesterday it would stay in Hungary's capital despite a decision by its founder's foundation to leave.
Orban is leveraging his recent massive electoral victory to restrict the political influence of NGOs, many of which received millions from Soros, a Hungarian who escaped the country before Nazis invaded.
The prestigious Soros-founded Central European University is also waging a battle against Orban after a higher education law was passed previous year that it says threatens its survival in Hungary.