The Federal Communications Commission has eliminated a decades-old restriction limiting how much of the U.S. television audience a single broadcast company can reach, setting the stage for a potentially significant wave of consolidation across the local television industry.
In a 2-1 vote on August 6, the FCC repealed its national television ownership rule, which generally prevented one company from owning stations reaching more than 39% of U.S. television households. The agency will instead evaluate future transactions individually under its broader public-interest standard.
FCC Chairman Brendan Carr and Commissioner Olivia Trusty supported the change, while Commissioner Anna Gomez opposed it.
Under the previous system, a television company seeking to expand beyond the 39% threshold generally had to obtain a waiver. The FCC’s new approach removes that automatic ceiling and allows regulators to consider potential benefits and harms whenever a proposed transaction would previously have exceeded the limit.
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The commission said the television market has changed dramatically since the ownership rules were developed, particularly because streaming platforms and other digital video services can operate nationally without comparable geographic restrictions. According to the FCC, allowing traditional broadcasters to achieve greater scale could help them attract investment, compete for advertising revenue and negotiate more effectively with national programming providers.
The 39% threshold has been in its current form since 2004, after Congress directed the FCC to establish that audience-reach level. Earlier versions of a national ownership restriction had existed for decades.
The decision does not mean broadcasters can automatically purchase unlimited numbers of television stations. The FCC said proposed transactions will continue to undergo case-by-case review, including consideration of competition, localism and viewpoint diversity. Deals determined not to serve the public interest can still be rejected.
Supporters of the change argue that the old rule no longer reflected the competitive reality facing local broadcasters. Traditional television stations now compete not only against other stations but against streaming companies, social platforms and online video services with nationwide audiences.
Critics, however, argue that eliminating the fixed limit could allow a relatively small number of companies to gain greater control over local television markets. Consumer and press-freedom advocates have warned that further consolidation could eventually lead to fewer independently controlled newsrooms, reduced local programming or greater bargaining power when broadcasters negotiate fees with cable and satellite providers.
That debate could ultimately affect ordinary viewers. Larger station groups may have more resources to invest in technology, news operations and programming, but greater concentration can also reduce competition. Depending on how future acquisitions are structured, changes in broadcaster negotiating power could potentially influence retransmission fees that television distributors eventually pass on to customers.
One of the most closely watched examples is Nexstar Media Group’s $6.2 billion acquisition of Tegna. The FCC approved the transaction earlier this year while granting waivers related to existing ownership limits. However, a federal judge subsequently issued a preliminary injunction requiring Nexstar and Tegna to remain operationally separate while antitrust litigation proceeds.
The elimination of the national cap could strengthen the regulatory position of companies seeking similar large-scale acquisitions, although it does not automatically resolve separate antitrust challenges or court proceedings.
There is also an important legal question surrounding the FCC’s authority to remove the rule. Gomez and several advocacy organizations argue that because Congress established the 39% figure in federal legislation, only Congress can eliminate it. The FCC takes the opposite position, maintaining that Congress never removed the commission’s broader authority under communications law to modify television ownership regulations.
That disagreement makes litigation highly likely and means the long-term future of the new policy may ultimately be decided in federal court.
From a broader industry perspective, the decision represents more than a technical regulatory change. Replacing a fixed national limit with individual reviews shifts considerable responsibility toward the FCC itself. Future commissions could therefore play an even larger role in deciding how concentrated the U.S. local television industry becomes.
Why It Matters
Local television remains an important source of news, weather, emergency information and political coverage for millions of Americans. Removing the 39% ownership ceiling could make major broadcast mergers easier to pursue and reshape who controls local stations across the country.
The central question will be whether greater scale helps broadcasters remain financially competitive in a streaming-dominated market or results in fewer independent owners and less variety in local journalism.
What Comes Next
Broadcasters are likely to examine new acquisition opportunities under the FCC’s case-by-case system, while opponents are expected to challenge the agency’s authority in court.
The outcome of those cases — along with the continuing Nexstar-Tegna litigation — could determine how far television consolidation can proceed and whether the FCC’s new ownership framework remains in place.
The FCC’s decision marks a major shift in how national television ownership will be regulated.
FCC plows ahead with scrapping TV ownership cap https://t.co/IkfeA6ZFdL
— POLITICO (@politico) August 6, 2026
