FCC Repeals National TV Ownership Cap to Aid Broadcasters

The Federal Communications Commission voted 2-1 on Thursday to repeal the National Television Ownership Rule, which for over two decades prohibited any single broadcast station owner from reaching more than 39% of all U.S. television households. The agency will replace the hard cap with a case-by-case review process to determine if proposed mergers serve the public interest and promote viewpoint diversity.

Chairman Brendan Carr led the effort, arguing that the 39% limit is an outdated restriction that prevents local broadcasters from competing on a level playing field with streaming services, social media platforms, and cable networks that can reach the entire country. Carr stated that the move helps struggling stations attract capital and sustain community-focused news in the face of declining local newspaper revenue.

Democratic Commissioner Anna Gomez cast the sole dissenting vote, asserting that the FCC lacks the legal authority to lift a cap codified by Congress. She warned that the decision strengthens the leverage of large national companies over local broadcasts and may enable content favorable to the administration. These concerns were echoed by Senator Ted Cruz, who questioned the agency's authority, and Senator Elizabeth Warren, who labeled the decision illegal.

The regulatory shift is central to Nexstar Media Group's acquisition of Tegna Inc., a deal valued between $3.54 billion and $6.2 billion. If fully integrated, the combined entity could reach between 60% and 80% of U.S. households. However, the merger faces ongoing antitrust challenges from DirecTV and a bipartisan group of state attorneys general, with legal battles expected to continue into next summer.