FCC Eliminates 39% National Broadcast TV Ownership Cap

The Federal Communications Commission voted 2-1 to eliminate the 39% national broadcast television ownership cap, removing a long-standing barrier to media consolidation. The decision shifts the agency from a hard numerical limit to a discretionary case-by-case review process for future mergers and acquisitions.

Led by FCC Chairman Brendan Carr, the vote scraps a rule that prevented any single company from owning stations reaching more than 39% of U.S. households. This limit was codified in federal law in 2004, having previously increased a 35% cap established in the 1990s. The move directly impacts major industry players; for instance, the combined entity of Nexstar and Tegna would reach approximately 60% of U.S. households. While the FCC had already approved Nexstar's purchase of Tegna in March 2026 via a specific waiver, the new policy removes the need for such exceptions.

The Shift Toward Scale

For over 20 years, the 39% cap was designed to ensure viewpoint diversity and prevent a handful of corporations from dominating the airwaves. However, local broadcasters have long argued that these regulations are obsolete. A Nexstar spokesperson noted that the rules were last updated before the existence of Instagram, the first iPhone, or the first movie streamed on Netflix.

Chairman Carr argued that the current media environment, dominated by streaming giants and social media platforms that face no such restrictions, requires local stations to have greater scale to compete and invest in local news. "The cap no longer constrains the power of national programmers," Carr said. "Instead, it prevents local broadcasters from competing on a level playing field."

Industry and Legal Implications

This policy shift significantly lowers the barrier for massive corporate consolidation, potentially allowing a few large companies to control local news across the country. Commissioner Anna Gomez, who dissented in the vote, warned that the change does not alleviate economic pressures on broadcasters, stating, "it just changes who is doing the squeezing."

Beyond the market impact, the decision creates a legal flashpoint regarding the FCC's authority to override limits set by Congress. This tension is heightened following the 2024 Supreme Court ruling that overturned Chevron deference, which limited the power of federal agencies to interpret ambiguous statutes. Critics suggest the new case-by-case review process could allow the FCC to reward broadcasters aligned with the administration while punishing those critical of it.

What's Next

Industry observers are now watching for the first set of merger applications under the new review process to see how the FCC defines the criteria for approval. Legal challenges are expected as opponents of the repeal question whether the agency has the statutory authority to ignore the 2004 federal law.