FCC set to scrap 39% national TV ownership cap

The Federal Communications Commission will vote on August 6 to eliminate the 39 percent national broadcast ownership cap that limits any company’s reach over U.S. television households. Chairman Brendan Carr proposes replacing the blanket rule with a case‑by‑case public‑interest review, arguing that the cap is outdated in an era where streaming services, virtual cable and social media can reach 100 percent of the country. Carr wrote, “When it comes to broadcast news, our country could do with a little less Hollywood and a little more local reporting from communities across the country.”

Industry groups such as the National Association of Broadcasters, Nexstar Media Group, Sinclair and others have welcomed the change, saying it will allow local broadcasters to scale, attract investment and compete with national media conglomerates. Shares of Nexstar, Scripps, Sinclair and Gray rose sharply after the announcement.

Democratic FCC commissioner Anna Gomez opposes the move, calling it “an unlawful effort to hand control of the public airwaves to billionaire buddies of this administration” and warning that removing the cap would destroy local newsrooms, silence community reporting and increase costs for families that rely on local stations. Gomez notes that the cap was set by Congress in 2004 and can only be altered by legislation. Legal challenges are expected, especially after the FCC previously waived the rule to approve Nexstar’s $3.54 billion acquisition of Tegna, which would give Nexstar coverage of about 80 percent of U.S. TV households.