WASHINGTON, D.C. — The Federal Communications Commission voted 2-1 to eliminate the National Television Ownership Rule. The FCC replaced the 39 percent national audience reach cap with a case-by-case review process for proposed mergers.

FCC Chairman Brendan Carr and Commissioner Olivia Trusty voted to eliminate the cap, while Commissioner Anna Gomez dissented. The National Television Ownership Rule prohibited any single broadcast station owner from reaching more than 39 percent of all U.S. TV households.

Carr argued that the change would support local media operations against larger national entities. "Repealing the national cap will provide essential relief for local broadcasters by restoring a healthy counterbalance to the growing leverage of national programmers," Carr said. He added that the adjustment would help stations secure necessary funding. "Increased scale will enable broadcasters to attract the capital and advertising revenue needed to sustain and produce trusted and community-focused news and programming," he said.

Gomez rejected the majority's legal reasoning in her dissenting statement. "The FCC’s decision to eliminate the 39 percent national audience reach cap is unlawful on its face," Gomez said. She emphasized that the agency does not have the power to override statutory limits set by the legislative branch. "Congress set this cap in federal law, and only Congress can change it," Gomez said.

Senator Elizabeth Warren criticized the vote as a benefit to wealthy owners at the expense of viewers. "Trump’s FCC Chair is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch," Warren said. Former House Majority Leader Tom DeLay wrote an op-ed stating the FCC has no legal authority to repeal the National Television Ownership Rule because the 39 percent limit is specified in U.S. law. DeLay served as House majority leader from 2003 to 2005.

The current limit traces back to legislative action in the early 2000s. Congress mandated the 39 percent cap in the Consolidated Appropriations Act of 2004. That legislation also prohibited the FCC from repealing or modifying the 39 percent cap during its quadrennial reviews of media rules.

DeLay stated that he and Senator Ted Stevens agreed to legislation setting the cap at 39 percent in exchange for Stevens' support of a budget bill. The regulatory history began decades earlier when the FCC first implemented a 25 percent nationwide audience reach cap in 1985. The Telecommunications Act of 1996 directed the FCC to increase the ownership cap to 35 percent.

The policy shift occurs as Nexstar Media Group is seeking to acquire Tegna in a $6.2 billion deal. The FCC granted a waiver in March allowing Nexstar to purchase Tegna despite the 39 percent ownership cap. A federal judge placed the Nexstar-Tegna merger on hold following an antitrust lawsuit filed by eight state attorneys general.

According to arstechnica.com, the FCC was previously accused of exceeding its authority when it gave Nexstar a waiver that let it complete its Tegna deal. The outlet reported that the FCC cannot legally waive the 39 percent limit because Congress amended Section 202 of the Telecommunications Act of 1996 to specifically bar the agency from granting waivers to the 39 percent cap Congress likewise dictated.

The elimination of the national cap replaces a fixed statutory limit with a discretionary review process, altering how media consolidation is evaluated. The 39 percent threshold represented a 14 percentage point rise from the original 25 percent cap implemented in 1985, and a 4 percentage point rise from the 35 percent level set by the 1996 Telecommunications Act. By removing this ceiling, the commission shifts authority from congressional statute to agency discretion for future merger approvals.

Critics argue the move violates the Consolidated Appropriations Act of 2004, which explicitly directed the commission to maintain the 39 percent limit and barred modifications during regulatory reviews. The dissent shows a conflict between the executive agency's regulatory goals and legislative mandates. The pending Nexstar-Tegna transaction illustrates the practical impact of these rules, as the deal remains subject to judicial review despite the recent waiver. The case-by-case framework introduces uncertainty for broadcasters planning expansions, as approval will depend on individual commission assessments rather than a clear numerical standard.

Why It Matters

The vote shifts authority over media consolidation from a fixed congressional statute to agency discretion, replacing the 39 percent audience reach cap with a case-by-case review. This change directly impacts pending transactions like the Nexstar-Tegna merger, which faces legal challenges based on claims that the FCC lacks power to override the Consolidated Appropriations Act of 2004. Critics argue the move violates federal law by allowing regulatory modification of limits that only Congress can alter.