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FCC to repeal 39% TV ownership cap, critics say only Congress can change it

Created at 15 Jul · 6:56 PM1 source↑ Market-relevant
IN SHORT

FCC Chairman Brendan Carr plans to repeal the National Television Ownership Rule, which limits a single owner to reaching 39% of US TV households. Critics, including Commissioner Anna Gomez, argue only Congress can change this limit, setting the stage for a legal battle.

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Key Numbers

39%National Television Ownership Rule cap
August 6FCC vote date
2003Year FCC last attempted to raise cap
45 percentCap raised to in 2003
2004Year Congress amended law to set cap at 39%
54.5 percentNexstar's reach with UHF discount
70 percent to 80 percentNexstar's reach increase without UHF discount after Tegna purchase

Who's Involved

Brendan Carr
FCC Chairman proposing repeal of TV ownership cap
Federal Communications Commission
Agency set to vote on repealing TV ownership rule
Anna Gomez
FCC Commissioner opposing the repeal, citing Congressional authority
Congress
Legislative body that set the original TV ownership cap
Nexstar Media Group
Company that received a waiver and supports the repeal
Tegna
Company acquired by Nexstar
President Trump
Beneficiary of potential rule change, according to critics
FCC to repeal 39% TV ownership cap, critics say only Congress can change it

↳ Why This Matters

The FCC's potential repeal of the TV ownership cap could significantly consolidate media ownership, potentially benefiting news organizations perceived as favorable to President Trump and raising concerns about the future of local news and diverse viewpoints on public airwaves.

Key facts

  • The FCC plans to vote on repealing the National Television Ownership Rule, which limits broadcast ownership to 39% of US TV households.
  • FCC Chairman Brendan Carr announced the proposed change, advocating for a case-by-case review of mergers instead of a hard cap.
  • Critics, including FCC Commissioner Anna Gomez, assert that only Congress has the authority to alter the ownership limit.
  • The FCC previously granted a waiver to Nexstar Media Group, allowing it to exceed the 39% cap.
  • The vote on the proposed repeal is scheduled for the commission's August 6 meeting.

The Federal Communications Commission (FCC) is preparing to vote on repealing the National Television Ownership Rule, a regulation that limits any single broadcast station owner from reaching more than 39 percent of U.S. television households. FCC Chairman Brendan Carr announced the proposed change, suggesting it would be replaced by a "case-by-case review" of proposed mergers. Carr argued in an op-ed published on Breitbart that the current rule hinders local broadcasters' ability to achieve necessary operational scale and that a shift to individual reviews would foster "localism, viewpoint diversity, and competition."

However, FCC Commissioner Anna Gomez, the sole Democrat on the three-member commission, strongly opposes the move, labeling it an "unlawful effort to hand control of the public airwaves to billionaire buddies of this administration." Gomez contends that only Congress has the authority to alter the ownership cap, citing a 2004 amendment to the Telecommunications Act that specifically set the limit at 39 percent after a previous attempt by the FCC to raise it in 2003.

Critics also point to a recent FCC waiver granted to Nexstar Media Group, allowing it to acquire Tegna and reach over half of U.S. TV households, as evidence of the commission exceeding its authority. Organizations like the United Church of Christ Media Justice Ministry, Public Knowledge, Free Press, and the Communications Workers of America have argued that the FCC cannot legally waive the 39 percent limit. Carr, however, maintains that Congress delegated rulemaking authority to the FCC, which includes the discretion to modify or waive its own rules.

The proposed repeal is supported by Nexstar and the National Association of Broadcasters, who argue that the decades-old restrictions are outdated in the current media landscape and that modernizing them will help broadcasters invest in local journalism. The vote on the proposed change is scheduled for August 6.

Frequently asked questions

The National Television Ownership Rule is a regulation set by the FCC that limits a single broadcast station owner from reaching more than 39 percent of all TV households in the U.S.

Carr argues that the rule is outdated and hinders local broadcasters' ability to achieve operational scale, suggesting a case-by-case review would better serve localism, viewpoint diversity, and competition.

FCC Commissioner Anna Gomez and various media advocacy groups oppose the repeal, asserting that only Congress has the authority to change the ownership cap and that the FCC is overstepping its bounds.

The FCC's previous waiver to Nexstar, allowing it to exceed the 39% cap, is cited by critics as evidence that the commission is already acting beyond its legal authority.

What Happens Next

01The FCC will vote on the proposed repeal of the National Television Ownership Rule on August 6.

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Cadence

How It Developed

FCC Chairman Brendan Carr announced plans to repeal the National Television Ownership Rule.
The rule currently prevents a single owner from reaching more than 39 percent of US TV households.
Carr plans to replace the cap with a case-by-case review of proposed mergers.
Commissioner Anna Gomez stated that only Congress has the authority to change the ownership cap.
Critics argue the FCC previously tried and failed to change the cap in 2003, with Congress subsequently reinforcing it.
The FCC previously granted a waiver to Nexstar Media Group, allowing it to exceed the 39 percent limit.
The proposed change is set to be voted on at the commission’s August 6 meeting.

Sources

T1
FCC to repeal 39% TV ownership cap in boost for Trump-friendly news orgsvar abtest_2163175 = new ABTest(2163175, 'impression');Ars Technica

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