The Federal Communications Commission voted on Thursday to eliminate the national broadcast ownership cap rule that previously restricted individual owners from controlling stations reaching a combined total exceeding 39 percent of U.S. television households. The decision, supported by FCC Chair Brendan Carr and Commissioner Olivia Trusty along party lines with Democratic Commissioner Anna Gomez dissenting, replaces the fixed limit with an individualized review process.
Under the new approach, the FCC will conduct what it describes as “granular, case-by-case review” to determine whether proposed broadcast consolidation transactions serve the public interest. Agency officials stated this framework eliminates the need to justify waivers from rules deemed no longer beneficial to the public. Carr has long opposed the ownership cap, characterizing it as an outdated restriction that hampers broadcasters’ ability to compete with digital platforms and streaming services that can reach national audiences without regulatory constraints.
Opponents of eliminating the cap, including Commissioner Gomez, contend that removing the restriction will encourage excessive station consolidation, potentially weakening local news operations and raising consumer costs. Legal experts have also questioned whether the FCC possessed authority to overturn the rule unilaterally, noting that Congress incorporated the specific 39 percent threshold into legislation, which could expose the decision to legal challenge.
The agency has previously worked around the existing cap through waiver authority. Carr approved a request to exempt a $6.2 billion merger between Nexstar and Tegna broadcasters from the cap restrictions. A federal judge has since paused that transaction pending legal review initiated by state attorneys general. The ownership cap decision comes amid broader tensions between the FCC leadership and broadcast networks over programming and editorial decisions.
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