The Federal Communications Commission (FCC) voted 2 to 1 on Thursday to lift the longstanding cap limiting the percentage of U.S. households that television station ownership groups can reach. The rule change increases the previous ownership limit from 39% to a higher threshold, and also relaxes restrictions on owning multiple stations within a single market.

The decision, led by FCC Chair Brendan Carr, allows the agency to approve station acquisitions exceeding the new cap if it determines the deals serve the public interest, including commitments to local journalism and viewpoint diversity. Carr, a Trump appointee, has emphasized these criteria will guide the FCC’s review process.

Supporters argue that the rule change modernizes regulations to help traditional broadcasters compete against large technology firms like Google, Netflix, and Meta, whose streaming services now attract more than 40% of U.S. viewers. Television broadcasters face declining viewership and shrinking revenue streams due to cord-cutting and changing consumer habits. Nexstar Media Group, which is currently seeking regulatory approval for its acquisition of Tegna’s stations despite ongoing antitrust litigation, welcomed the vote. A Nexstar representative said the update addresses outdated federal rules that have handicapped local broadcasters in reaching a scale comparable to major tech platforms. Adam Symson, president and CEO of E.W. Scripps Co., also praised the change, saying it will provide broadcasters with the flexibility needed to innovate and adapt.

Opposition to the move was voiced by Anna Gomez, the lone Democrat on the commission, who criticized the decision as favoring large national station groups rather than true local broadcasters. Gomez contended that the rule change would not relieve economic pressures on local television but instead consolidate power among a smaller number of large media companies that increasingly determine programming. Consumer advocacy groups, several state officials, and some lawmakers also expressed concerns that greater consolidation could lead to newsroom layoffs and diminish the diversity of voices and perspectives available to local audiences.

Questions have been raised about the FCC’s legal authority to alter the ownership cap without congressional approval. In response, Chair Carr cited past FCC decisions and a D.C. Circuit Court ruling indicating the commission possesses such regulatory discretion.

The lifting of the ownership cap does not immediately impact ongoing litigation surrounding Nexstar’s planned acquisition of Tegna. A group of state attorneys general filed a lawsuit opposing the deal, arguing it violates antitrust laws by reducing competition. A preliminary injunction issued by a U.S. District Court judge last month prevents Nexstar and Tegna from merging their operations until the case is resolved. If approved, the deal would significantly expand Nexstar’s reach, increasing its portfolio to 265 television stations nationwide and enabling ownership of multiple major network affiliates in key markets such as San Diego and Sacramento.