Pallone Warns Carr Not to Contravene Congress by Lifting FCC's Broadcast-Ownership Cap

Lobbyists and other observers said they expect that the hearing will feature a high-profile faceoff between supporters and opponents of lifting it. It will begin at 10 a.m. in 253 Russell.

Media industry lobbyists also noted continued reports that Carr may have been slow-walking action on the cap proposals while he waited for a more definitive signal from President Donald Trump. Trump and Carr came out Saturday in favor of Nexstar’s $6.2 billion purchase of Tegna, which would require a lifting of the cap (see 2602090068).

“I am deeply concerned about your efforts to eliminate all media ownership restrictions,” including the ownership cap, Pallone said in his letter to Carr. The chairman's “exploration” of lifting the cap “seems obviously designed to allow a political ally, Nexstar, to complete” the Tegna purchase, Pallone said. “Nexstar proposed this multibillion-dollar merger knowing that, at the time of filing, it could not be completed under the law. The deal, if approved, would violate the 39 percent ownership cap even when accounting for the technically obsolete UHF discount. To accomplish the deal, Nexstar has explicitly asked you to either remove the national cap or waive the cap. As discussed above, both options would violate the law.” The FCC didn’t immediately comment.

“The limit on how much of the national television audience any one broadcast station ownership group is allowed to reach is enshrined in law [via the FY 2004 appropriations package], and therefore cannot be changed without congressional action,” Pallone said. Carr has repeatedly dodged attempts to pin him down on his position on proposals for the agency to eliminate or ease the cap, including during a House Communications Subcommittee FCC oversight hearing last month (see 2601140071).

“The fact that Congress set a permanent cap, that could not be changed by the FCC, was widely understood at the time and has been the prevailing understanding of the law,” Pallone told Carr on Monday. “Numerous members of Congress, both Republicans and Democrats, referred to the cap as permanent” when Congress enacted it, and “multiple” broadcasters have since “expressed their understanding that Congress permanently set the cap and only Congress could change it.” That means “the actions you are considering are not only unlawful, but they would also lead to unprecedented media consolidation both in local markets and at a national scale, benefiting only the largest station owners,” Pallone said.

Senate Commerce ranking member Maria Cantwell, D-Wash., also emphasized ahead of Tuesday's hearing that she opposes lifting the cap. “Raising the ownership cap will only accelerate the consolidation that's already hollowed out local newsrooms,” she said Monday in a statement. “And if we're serious about saving local news, we should be advancing solutions like tax credits for hiring local journalists and requiring meaningful commitments from the AI and tech companies whose products rely on quality local journalism.”

NAB CEO Curtis LeGeyt is expected to strongly back the cap's elimination at the hearing. “He plans to tell senators that the national broadcast-ownership cap is outdated and is weakening local [TV] stations at a time when communities need them most,” one official said. He “will urge Congress to support [the FCC] in repealing the cap and modernizing broadcast-ownership rules so local stations can compete fairly with Big Tech and global streaming platforms.”

Wiley’s Tom Johnson, a former FCC general counsel under Chairman Ajit Pai, will also testify in favor of lifting the cap, lobbyists told us. Newsmax CEO Chris Ruddy and Rebuild Local News President Steve Waldman are expected to testify in opposition, lobbyists said.