US ends cap on local TV station owners amid concerns of media consolidation | Media News
FCC Votes to Lift 39% Ownership Cap on Broadcast Stations, Sparking Controversy
The Federal Communications Commission (FCC) has voted to eliminate a long-standing rule that limits local broadcast station owners from reaching more than 39 percent of television households in the United States. The decision, made on August 6, 2026, could pave the way for increased consolidation within the media industry.
In a narrow 2-1 vote, the FCC approved the new approach, which will evaluate mergers on a case-by-case basis. Anna Gomez, the commission’s only Democratic member, opposed the proposal, arguing that only Congress has the authority to amend the cap, which was established to prevent excessive media concentration.
Critics assert that scrapping the cap may lead to an imbalance of market power among station owners. Since 1941, the FCC has imposed ownership limits on local broadcast stations, raising the cap to 39 percent in 2004.
FCC Chairman Brendan Carr defended the new rule, stating it is aimed at bolstering local broadcasters in light of declining revenues, particularly for newspapers. “We should stop hamstringing this one segment of the broader market with outdated restrictions,” Carr said, noting the challenges facing local media.
Under the previous regulations, stations with weaker over-the-air signals were counted against a company’s ownership cap. The FCC’s revised framework aims to remove these limitations, allowing companies to more effectively attract investment.
Gomez characterized the decision as an “invitation to bring in a lot of transactions,” expressing concern that it would grant “more control of the public airwaves to a small number of companies.” She criticized the ruling as favoring media content that aligns with the current administration.
Carr contended that lifting the cap would empower local television owners to invest more in programming and engage more effectively with national networks. The FCC recently approved Nexstar’s $3.54 billion acquisition of Tegna, which, if validated by the courts, would extend Nexstar’s reach to approximately 80 percent of U.S. TV households, with the commission waiving the 39 percent cap for this deal.
Senate Commerce Committee Chairman Ted Cruz expressed skepticism regarding the FCC’s ability to modify the cap without congressional approval. Meanwhile, Clayton Weimers, the executive director of Reporters Without Borders North America, condemned the commission’s action as a removal of vital safeguards against media ownership concentration.
Weimers stated that the rule change benefits a select group of powerful media conglomerates and exceeded the FCC’s legal authority. Reporters Without Borders is currently evaluating options to challenge the decision.
