FCC Scraps Broadcast TV Ownership Cap in 2-1 Vote

The Federal Communications Commission voted 2-1 on Thursday to eliminate the national cap on broadcast television ownership, a landmark decision that could reshape the American media landscape by enabling further consolidation among station groups. The vote removes a 22-year-old rule that prevented any single company from owning stations reaching more than 39% of U.S. television households, replacing it with a case-by-case review of proposed mergers and acquisitions.

The decision, which fell along party lines, delivers a significant win to large broadcasters — most notably Nexstar Media Group, the nation’s largest owner of local TV stations — while drawing immediate pledges of legal challenges from consumer advocates who argue the FCC overstepped its authority.

The 39% Cap: A Two-Decade-Old Rule

The ownership limit traces its roots to FCC regulations dating back to the 1940s, but the modern 39% cap was established through a 2004 congressional compromise negotiated by then-House Majority Leader Tom DeLay. Congress directed the FCC to set the cap at 39% of U.S. TV households, overriding a 2003 FCC decision to raise the limit from 35% to 45%. The 2004 law also specified that the FCC could not repeal or modify the cap during its quadrennial reviews of media rules, cementing the restriction in federal statute.

According to NBC News, the rule remained unaltered for more than two decades partly because it is codified in federal law. The cap was designed to promote a diversity of voices on television and to ensure competition in the broadcast industry.

The Vote and Its Rationale

Republican Chairman Brendan Carr and Republican Commissioner Olivia Trusty voted in favor of eliminating the cap, while Democratic Commissioner Anna M. Gomez cast the lone dissenting vote. Carr, who was appointed head of the FCC at the start of President Donald Trump’s second term, argued that the cap is outdated in a media landscape dominated by streaming platforms and tech giants.

“The cap no longer constrains the power of national programmers. Instead, it prevents local broadcasters from competing on a level playing field,” Carr said, as reported by The Guardian. “It is time to restore balance to the broadcast airwaves. Repealing the national cap will provide essential relief for local broadcasters by restoring a healthy counterbalance to the growing leverage of national programmers.”

Carr also warned about the decline of local journalism, noting that more than 80% of local journalism jobs have vanished over the last two decades. “I don’t want local broadcast TV to go the way of local newspapers, and yet the risk is real,” he said.

Trusty echoed those concerns, pointing to the dramatic transformation of the media marketplace since the rule was last meaningfully updated. “When the national broadcast television ownership rule was last meaningfully updated, Netflix had not yet begun its streaming service. YouTube did not exist, and appointment television was still very much the norm,” Trusty said, according to TV Technology. “Today, streaming viewership surpasses the combined share of broadcast and cable, and is more than double that of broadcast television alone.”

A Sharp Dissent

Gomez, the lone Democrat on the commission, delivered a blistering dissent, arguing that the FCC’s action is unlawful because Congress set the cap in federal law. “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,” Gomez said. “Congress set this cap in federal law, and only Congress can change it.”

Gomez also challenged the notion that eliminating the cap would help local broadcasters. “Eliminating the cap does not free local broadcasters from economic pressure, it just changes who is doing the squeezing,” she said. “The large station groups positioned to grow even larger under this decision are not local broadcasters, they are national companies that own local stations and increasingly dictate what airs on them.”

Her dissent was echoed by consumer advocacy groups. Free Press, a progressive organization, said it planned to sue over what it called the FCC’s “unlawful power grab.” Matt Wood, vice president of policy and general counsel at Free Press, said: “Brendan Carr cannot undo the limit that Congress set just because he feels like it.”

The Legal Battle Ahead

The central legal question is whether the FCC has the authority to repeal a cap that was set by Congress in federal law. Carr contends the FCC has statutory authority to modify the rule, citing a 2002 D.C. Circuit Court of Appeals decision that characterized Congress’s specified percentage as “only the starting point from which the Commission was to assess the need for further change.”

However, as Ars Technica noted, that 2002 ruling was issued before Congress set the cap at 39% and imposed limits on the FCC’s ability to change it. Opponents point out that even some Republicans with firsthand knowledge of the issue disagree with Carr’s interpretation. Former FCC Commissioner Mike O’Rielly has said the FCC lacks authority to change the cap, and Senate Commerce Chair Ted Cruz has expressed skepticism that a change can be made absent an act of Congress.

Carr acknowledged the likelihood of litigation. “If it goes to the courts, it goes to the courts,” he said. “And we’ll litigate it and see where it goes.”

Implications for the Nexstar-Tegna Merger

The decision delivers a major win to Nexstar, which has been the most prominent advocate for eliminating the cap. Nexstar is seeking to acquire rival broadcaster Tegna in a $6.2 billion deal that would create a combined entity with roughly 260 stations reaching 60-80% of U.S. households. The FCC granted Nexstar a waiver of the 39% rule in March 2026 to approve the merger, but a federal judge has put the transaction on hold after eight state attorneys general filed an antitrust lawsuit.

Nexstar CEO Perry Sook said the repeal “will remove a certain level of uncertainty in future M&A,” allowing broadcasters to “compete on the same playing field in the domestic U.S. with every other purveyor of advertising.” Gary Weitman, Nexstar’s chief communications officer, called the decision “a welcome, necessary and long-overdue recognition of today’s competitive landscape.”

The National Association of Broadcasters also cheered the move. “The FCC’s decision to eliminate the outdated national television ownership cap marks a generational step toward strengthening local stations and ensuring they can compete in today’s media marketplace,” said Curtis LeGeyt, the organization’s president and CEO.

Broader Concerns About Consolidation

Critics warn that eliminating the cap will accelerate media consolidation, trigger rounds of layoffs, shrink the pool of independent station owners, and limit viewpoint diversity on the airwaves. Clayton Weimers, executive director of Reporters Without Borders North America, said the FCC “has abandoned one of the last significant safeguards against excessive concentration of media ownership in the United States.”

Sen. Elizabeth Warren (D-MA) was equally blunt: “Trump’s FCC Chair is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch.” California Governor Gavin Newsom called the action “straight out of a dictator’s playbook.”

Broadcasters counter that the cap unfairly singles out local TV stations while streaming services, social media platforms, and other digital competitors face no similar ownership restrictions. As Variety reported, Nexstar and other top station owners have argued that rules written before Netflix streamed a single movie prevent them from competing in a marketplace where YouTube, Amazon, and CNN can reach 100% of U.S. households.

What’s Next

With the cap eliminated, the FCC will now evaluate proposed mergers on a case-by-case basis, judging each transaction on its individual merits. The agency said it will approve deals that promote the public interest and reject those that do not.

Legal challenges are all but certain. Free Press has announced plans to sue, and Newsmax CEO Chris Ruddy has said he is prepared to litigate over the FCC’s action. The outcome of these challenges could determine whether the FCC’s decision stands or whether Congress must revisit the issue.

For now, the decision marks a significant shift in U.S. media policy — one that supporters say will help local broadcasters compete in the digital age, and critics say will accelerate the concentration of media power in fewer and fewer hands.