Campaigners fear the new legislation will be used to strip funds from productions that do not sit well with the ruling Fidesz party.
The right-wing Fidesz party has long lobbied the EU to take a harder stance on immigration into the continent-wide bloc.
Analysts say that development funds from the EU have been critical in explaining the Fidesz party's success in Hungary.
Ruling Fidesz party politician, Simon Song, is half Japanese but that has not stopped him from campaigning against foreigners.
The far-right ruling Fidesz party has introduced harsh anti-migrant policies in a bid to deter asylum seekers and refugees from entering the country.
The Hungarian Prime Minister’s party has been suspended from the European People’s Party, but some see it as a half-measure in the face of a tougher original proposal to expel the party from Europe's largest bloc.
Prime Minister Viktor Orban warns that Europe is being 'overrun' by migrants as he rallies Hungary's fellow Visegrad countries Slovakia, Czech Republic and Poland to set up a right-wing front against European Union policies.
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