FCC Removes Limits on Local TV Station Ownership

FCC Removes Limits on Local TV Station Ownership

2026-08-07 companies

Washington, Thursday, 6 August 2026.
On August 6, 2026, the FCC voted 2-1 to eliminate the long-standing 39 percent national TV ownership cap. The landmark decision paves the way for historic broadcast media consolidation.

FCC Votes to Repeal National TV Ownership Caps

On August 6, 2026, the Federal Communications Commission voted to rescind the long-standing 39 percent national television ownership cap, removing structural restrictions on how many local broadcast stations a single company can own [1][2]. The landmark decision eliminates a key regulatory barrier that previously barred network operators from reaching more than 39 percent of U.S. households, opening the door for an immediate wave of corporate consolidation and M&A activity across the media sector [1][5]. The vote concluded 2-1, with Chairman Brendan Carr and Commissioner Olivia Trusty supporting the measure, while Commissioner Anna Gomez dissented [2][3]. This regulatory shift marks a significant departure from policies established in 2004, which codified the ownership limit into law following earlier attempts to modify it [4][6].

Critics argue that only Congress possesses the authority to lift the cap, citing the Consolidated Appropriations Act of 2004 which specifically mandated the 39 percent limit [6][8]. Former House Majority Leader Tom DeLay, who helped create the cap, stated that regulatory agencies cannot defy or modify laws enacted by Congress without new legislation [5][6]. Senate Commerce Committee Chair Ted Cruz expressed skepticism regarding the FCC’s legal authority to increase ownership limits without Congressional action, suggesting a court fight is likely [2][5]. The American Television Alliance, representing entities including DirecTV and Verizon, publicly opposed the repeal, stating it violates congressional instructions and will likely be overturned by courts [6].

Market Consolidation and Nexstar Media Group

The decision is expected to accelerate merger activity, particularly benefiting large broadcasters like Nexstar Media Group and Sinclair [5]. In March 2026, the FCC approved the acquisition of Tegna by Nexstar, waiving the 39 percent rule and allowing Nexstar to potentially cover 80 percent of U.S. TV households [2][3]. However, this 6.2 billion deal remains contested due to an antitrust lawsuit filed by eight state attorneys general and DirecTV [3][5]. Despite the legal hold, the removal of the national cap removes a significant hurdle for future transactions aiming to exceed the previous reach limitations [1][8].

Implications for Local Journalism and Diversity

Chairman Carr argued that the 39 percent rule prevented local broadcasters from reaching the scale necessary to invest in local news and journalism reporting [4][8]. National Association of Broadcasters President Curtis LeGeyt supported the repeal, stating ownership restrictions are no longer rational compared to regulations applied to tech and streaming entities [4][8]. Conversely, Commissioner Gomez warned that eliminating the cap does not free local broadcasters from economic pressure but changes who is doing the squeezing [3][4]. Opponents warn the repeal will accelerate media consolidation, reduce independent station ownership, limit viewpoint diversity, and trigger layoffs in local newsrooms [3][4].

Sources


Media Consolidation FCC Regulation