FCC to vote on replacing 39% national TV ownership cap
FCC Chairman Brendan Carr has scheduled an August 6 vote to authorize case-by-case exemptions to the 39% national TV ownership cap. This proposal could significantly lower regulatory barriers for large-scale broadcast acquisitions, most notably Nexstar’s proposed merger with Tegna, by altering how ownership percentages are calculated.
Key Takeaways
- The August 6 vote targets the 39% cap and the 50% UHF discount calculation loophole used by major station groups.
- Nexstar’s acquisition of Tegna would reach roughly 80% of U.S. households, far exceeding the current statutory limit.
- Chairman Carr argues broadcasters need increased scale to compete with 100% reach available to 'national programmers' like Disney and Comcast.
- Opponents argue only Congress, not the FCC, has the legal authority to modify the ownership limits established by federal law.
- A coalition of eight state attorneys general is currently suing to block the Nexstar-Tegna merger regardless of FCC policy changes.
Why It Matters
The shift from a fixed cap to a discretionary 'public interest' review would fundamentally decentralize U.S. media ownership and give the FCC significantly more leverage over market structure. For the streaming ecosystem, this consolidation provides local broadcasters with the scale necessary to negotiate better terms with national networks and direct-to-consumer platforms. However, the move is certain to trigger a protracted legal battle over regulatory overreach, as the 39% figure is enshrined in the Consolidated Appropriations Act of 2004. Watch for the D.C. Circuit Court of Appeals to intervene if the FCC approves exemptions for the Nexstar-Tegna deal immediately following the August vote.
Additional Context
The regulatory landscape surrounding the 39% cap has evolved rapidly in 2026. In March 2026, the FCC Media Bureau initially approved the Nexstar-Tegna merger, but that approval was quickly met with a preliminary injunction in the Eastern District of California. Per TV Technology (July 2026), a judge has since set a trial date of July 9, 2027, for a consolidated lawsuit brought by DirecTV and 12 state attorneys general who argue the merger will harm competition and increase consumer cable bills. This trial is expected to proceed even if the full commission votes to repeal the ownership cap, as the antitrust allegations remain a separate legal hurdle. Simultaneous to the regulatory push, political support for broadcast consolidation has shifted. While President Donald Trump initially expressed concern over the merger in late 2025, he reversed his stance in February 2026. Per AP News (February 2026), Trump publicly endorsed the deal on social media, arguing that strengthened local broadcasters would provide better competition against national 'fake news' networks. This shift in executive branch sentiment has emboldened Chairman Carr to move forward with the August 6 vote, despite warnings from Democratic Commissioner Anna Gomez that the FCC lacks the statutory power to override congressional mandates. The industry's reliance on the 'UHF discount' also remains a flashpoint for reform. This rule, which allows UHF stations to count for only 50% of their market reach, has historically allowed groups to operate significantly over the 39% cap. Per Northpine (July 2025), critics argue that in an era of digital distribution, the technical justification for the discount has vanished. If the FCC eliminates the discount while simultaneously allowing case-by-case exemptions, it would create a high-discretion environment where the agency's political alignment has a direct impact on the viability of billion-dollar M&A activity.
Read full article at poynter.org
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