Key facts
- A federal appeals court blocked an FCC decision to extend discounted TV advertising rates to political parties and joint fundraising committees.
- The court ruled that only legally qualified candidates are entitled to the lowest unit charge (LUC) under US law.
- The decision was made in response to a lawsuit filed by four Democratic candidates.
- The ruling sets aside an FCC public notice that was scheduled to take effect on September 4.
- The court found the FCC's expansion of the LUC requirement lacked statutory justification.
A federal appeals court has blocked a Trump administration decision that would have allowed political parties and joint fundraising committees to access the lowest unit charge (LUC) for television advertising rates. The ruling by the US Court of Appeals for the 4th Circuit, in a 2-1 vote, sided with four Democratic candidates who argued that only individual candidates are entitled to these discounted rates under US law.
The Federal Communications Commission (FCC) had previously ordered broadcasters to offer the lowest ad rates to political parties and joint fundraising committees, a decision scheduled to take effect on September 4, the start of the 60-day pre-election period for LUC rates. The court found the FCC's expansion of the LUC requirement lacked statutory justification and set aside the FCC's public notice.
The judges stated that the statutory text is clear that only candidates are entitled to the LUC, and it provides no support for the FCC's unilateral expansion. The ruling was written by Judge Robert King, joined by Judge James Wynn, with Judge J. Harvie Wilkinson III filing a dissent.
The lawsuit was brought by Democratic candidates Sherrod Brown, Jon Ossoff, Roy Cooper, and Kristen McDonald Rivet. Their legal team, Elias Law Group, called the decision a significant blow to Republicans, who they argued were seeking to subsidize their campaigns with these lower rates. The group also noted the ruling's significance following a Supreme Court decision that struck down limits on party committee spending in coordination with federal candidates.
FCC Commissioner Anna Gomez, the sole Democrat on the commission, had previously dissented from the FCC's decision, warning it would unleash "dark money" and disadvantage broadcasters by forcing them into a "fire sale" of their advertising inventory. The court noted the FCC's delay in addressing the candidates' petition and the trade group's similar request, characterizing the agency's inaction as a "constructive denial."