In a historic party-line vote on Thursday morning, the Federal Communications Commission eliminated the 39% national audience reach cap, overturning a key check against television industry consolidation and clearing the way for major media conglomerates to expand their footprint across the United States.
The 2-1 Vote and the Regulatory Shift
The Federal Communications Commission voted to dismantle a restriction that barred any single company from owning television stations reaching more than 39% of all U.S. households. The threshold originated from a 2003 compromise hammered out by congressional negotiators and was later written into a 2004 appropriations bill.
During Thursday’s session, the agency’s media bureau presented an argument that the audience cap had become obsolete. Commissioners were told that the restriction no longer served its original purpose of promoting competition, but instead constrained local television networks from scaling up their operations in a transformed media environment.
The initiative won support from FCC chair Brendan Carr and Trump-appointed commissioner Olivia Trusty. While Trusty noted she did not view the repeal as a universal fix for industry competition, she characterized it as a meaningful step forward for broadcasters. Carr defended the agency’s legal standing to enact the change.
“The FCC has the authority to modify the cap as we did today, and it is the right policy answer [if] you care about the future of trusted local news. It’s time to restore balance to the broadcast airwaves. Repealing the national cap will provide essential relief for local broadcasters by restoring a healthy counterbalance for the growing leverage and power of national programmers.”
Brendan Carr, FCC chair, via Theguardian
Broadcasters have long argued that the ownership limit prevented them from achieving the scale necessary to compete with unregulated tech giants that siphon off local advertising revenue. With the cap removed, the FCC will transition to a case-by-case review of merger transactions that exceed the threshold.
Major media conglomerates immediately stand to gain from the decision, particularly conservative-leaning station groups like Sinclair Broadcast Group and Nexstar Media Group. Chris Ripley, the chief executive of Sinclair, stated on an earnings call that his company couldn’t be happier about the regulatory overturn.
Nexstar has already pursued expansion, obtaining a waiver from the FCC’s media bureau to merge with Tegna in a $6.2bn transaction that would create a broadcast giant holding approximately 260 stations and covering 80% of the country. Although that specific merger is currently on hold due to a temporary injunction issued by a California judge amid an antitrust lawsuit brought by state attorneys general and DirecTV, the underlying waiver demonstrates the immediate utility of the commission’s policy shift for mega-broadcasters.
Despite the win for conglomerates, the decision drew sharp opposition across political lines. Anna M. Gomez, the sole Democrat on the FCC, voted against the repeal and issued a stern warning about its consequences.
“Today’s decision to eliminate the 39% national audience reach cap is unlawful on its face and a profound departure from both statutory boundaries and longstanding broadcast policy. Congress set this cap in federal law, and only Congress can change it. I cannot support an action that so plainly violates the law and exceeds the Commission’s authority while simultaneously overlooking the real-world consequences for the public we serve.”
Skepticism also surfaced from Republican figures. Sen. Ted Cruz (R-TX) expressed doubts regarding whether the FCC possesses the unilateral authority to repeal a statutory cap. Former Republican commissioner Michael O’Rielly and former House Majority Leader Tom DeLay similarly argued that the authority rests solely with Congress, with DeLay noting in an op-ed that regulatory agencies cannot override legislation enacted by lawmakers.
Anticipated Court Battles and Public Backlash
Press freedom advocates and public interest organizations organized demonstrations outside the FCC building in Washington, holding placards featuring Carr’s face and the word shame. Critics warned that the rule change would accelerate the erosion of independent journalism.
Matt Wood, vice-president of policy and general counsel for the advocacy group Free Press, argued that the agency’s leadership is clearing a path for corporate consolidation at the expense of local communities.
“Changing this limit requires congressional action, but Carr doesn’t care. He’ll do whatever it takes to clear the way for Trump-aligned billionaires to swallow up stations wherever and whenever they please. The result would be just one or two dominant broadcasters in every market, deep job cuts for journalists and an influx of bargain-basement content disguised as local news. This spells disaster for the local communities that broadcasters are supposed to serve.”
Matt Wood, Vice-President of Policy and General Counsel of Free Press, via Theguardian
Clayton Weimers, executive director of Reporters Without Borders North America, echoed those concerns, characterizing the regulatory rollback as consolidation in the interest of the powerful rather than genuine deregulation.
Legal challenges appear all but certain. Free Press announced immediately following the vote that the organization and its allies intend to challenge the commission’s order in federal court. Newsmax CEO Chris Ruddy also indicated preparedness for litigation during a congressional hearing earlier in the year, maintaining that the television industry is too vital to be concentrated among a handful of conglomerates.
When questioned about potential litigation during a post-meeting press conference, Carr adopted a dismissive stance on the agency’s legal exposure, stating, If it goes to the courts, it goes to the courts. And we’ll litigate it and see where it goes. Sinclair executives similarly expressed confidence that the commission’s rationale rests on solid legal footing, setting the stage for a judicial showdown over the future of American broadcast ownership.
