FCC Votes To Repeal TV Ownership Caps

The Federal Communications Commission voted 2-1 on Thursday to repeal the longstanding national television ownership cap that barred any single broadcaster from reaching more than 39% of U.S. TV households, replacing the bright-line limit with a case-by-case public interest review of proposed mergers and acquisitions. 

The decision, led by Republican Chairman Brendan Carr and supported by fellow Republican Commissioner Olivia Trusty, overturns a rule in place since 2004. Democratic Commissioner Anna Gomez cast the sole dissenting vote, arguing that Congress alone has the authority to alter the statutory limit and warning that the change would accelerate media consolidation harmful to local news and competition. 

Under the new framework, the FCC will evaluate each transaction individually against standards of localism, viewpoint diversity, and competition rather than automatically blocking deals that exceed the old threshold. Carr has described the prior rule as outdated in an era when national programmers and streaming services face no comparable restrictions, saying the shift will let local broadcasters gain the scale needed to compete and invest in community journalism. 

The vote arrives as Nexstar Media Group’s $6.2 billion acquisition of Tegna remains frozen in legal limbo. The FCC’s Media Bureau waived the 39% cap in March to clear the deal, which would create the nation’s largest station group reaching roughly 80% of TV households (or about 54.5% after the traditional UHF discount). 

Nexstar closed the transaction the same day, but a federal judge later issued a preliminary injunction blocking further integration while an antitrust challenge by DirecTV and several state attorneys general proceeds. 

Opponents of the repeal, including public interest groups and some lawmakers, contend the agency exceeded its authority because Congress set the 39% figure in a 2004 appropriations law. Supporters, including the National Association of Broadcasters and major station groups, argue the FCC retains inherent power under the Communications Act to modify its own ownership rules and that the case-by-case approach better reflects today’s fragmented media marketplace.

The order is widely expected to face immediate court challenges.