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FCC Scraps 39% National Ownership Cap on Local TV Stations

The Federal Communications Commission voted 2-1 on Thursday to dismantle the long-standing 39% ownership cap on local broadcast stations, signaling a shift toward case-by-case merger reviews. This pivot abandons a regulatory ceiling in place since 2004, potentially triggering a wave of consolidation across the American television landscape.

FCC Scraps 39% National Ownership Cap on Local TV Stations

FCC Chair Brendan Carr championed the change as a necessary lifeline for local broadcasters, drawing a parallel to the systemic decline of local newspapers. By removing what he termed outdated restrictions, Carr aims to bolster the financial stability of regional stations, theoretically allowing them to secure more capital and gain leverage against dominant national networks. The agency intends to evaluate future merger applications individually to assess whether exceeding the previous threshold serves the public interest.

Opposition remains sharp. Commissioner Anna Gomez, the sole Democrat on the panel, denounced the decision as legally unauthorized, asserting that only Congress possesses the power to adjust the mandate. Critics fear the move will concentrate excessive market power in the hands of a few media conglomerates. This regulatory shift follows the controversial $3.54 billion sale of Tegna to Nexstar—a deal the FCC previously greenlit via a waiver—which pushed Nexstar’s reach to 80% of U.S. households. Even within the Republican ranks, skepticism lingers; Senate Commerce Committee Chair Ted Cruz recently questioned whether the commission has the legal standing to bypass Congress on this issue.

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