A Senate Commerce Committee hearing Tuesday on the Federal Communications Commission's national television ownership cap revealed rare bipartisan agreement on one central point: The 39% audience reach limit was set by Congress and cannot be unilaterally rewritten by the FCC.
Lawmakers from both parties also signaled that any action affecting the cap — including decisions tied to Nexstar Media Group's proposed $6 billion acquisition of Tegna — must be taken by the full commission, not advanced at the bureau level.
Those findings could seriously complicate Nexstar's merger plan and open any approval to legal challenges.
The hearing, convened by Chair Ted Cruz, R-Texas, with Ranking Member Maria Cantwell, D-Wash., examined whether the decades-old ownership restriction remains appropriate in a media landscape transformed by streaming services, social media, and digital advertising giants.
At the center of the debate is a rule prohibiting any single broadcast television company from reaching more than 39% of U.S. households.
Nexstar, already the nation's largest local television station owner, is seeking to own stations reaching 80% of the U.S. — significantly exceeding the 39% threshold if its deal is approved.
Cruz opened the hearing by acknowledging that media ownership rules were crafted in a different technological era but cautioned against dismissing their continuing relevance.
"If there's one thing that's clear, it's this: Current media ownership rules were written in a vastly different technological age," Cruz said.
"Yet even in this fragmented landscape, the media's ability to shape national discourse remains powerful, making questions about market concentration as important as ever."
Cruz and Cantwell appeared aligned in their understanding that the 39% cap is statutory.
Several senators underscored that Congress codified the limit, meaning any fundamental change would require legislative action rather than administrative reinterpretation.
Lawmakers also suggested that any FCC move affecting the cap should be decided by the commissioners themselves in a formal vote, not handled at the staff or bureau level — a procedural issue that has drawn growing scrutiny as the Nexstar-Tegna transaction advances.
Cantwell raised concerns about the scale of the proposed merger and its potential impact on local markets.
"If the Nexstar-Tegna deal goes through, a single company will control 265 stations capable of reaching 80% of all households — more than double the current cap," Cantwell said.
"For nearly half of their audience — 100 million people — Nexstar would own two or more stations in a media market. Now that concerns me."
Cantwell questioned whether further consolidation would narrow viewpoint diversity and reduce competition in local advertising and retransmission negotiations.
She echoed Cruz's view that the statutory cap is not easily altered by regulatory fiat, reinforcing the bipartisan sentiment that Congress retains primary authority over the limit.
Among the witnesses was Newsmax CEO Christopher Ruddy, who argued strongly against lifting or circumventing the cap.
"We need more independent media and more competition, not less," Ruddy told the panel.
"Large station groups hold enormous leverage over pay TV operators through retransmission fees."
Ruddy contended that allowing Nexstar to expand beyond the 39% threshold would increase that leverage, ultimately raising costs for consumers.
"They just want to say they lifted the caps, because if they lifted the caps, they're able to get more fees from the cable operators," Ruddy said.
"Those costs are passed on to you and me and the consumers."
He disputed claims that broadcasters need additional scale to survive in competition with technology platforms.
"One thing is they never showed the Senate committee how they're hurting because they're making record profits," Ruddy said, pointing to Nexstar's multibillion-dollar earnings in recent years.
"They want more money," he said, asserting the Nexstar deal "is good for Wall Street, but bad for Main Street."
Ruddy also emphasized the growing importance of local television as newspapers decline nationwide.
"Right now across the country, newspapers are greatly diminished and so it's critical — whoever controls these TV stations will have a tremendous impact on local communities, local politics, and political races," he said.
"It impacts all of us because TV controls local news."
He argued that consolidation could reduce viewpoint diversity and shift editorial direction across markets if ownership becomes concentrated in fewer corporate hands.
"If they want changes, they should go before Congress and seek them," Ruddy said, referring to potential alterations to the cap.
"That's how the system is supposed to work, not have bureaucrats decide."
Ruddy indicated that independent media companies are weighing legal options, should the FCC act in a manner they believe conflicts with statutory law.
"If they clearly violate the law, I think companies like Newsmax and independent media companies will really have no alternative but to go into court," he said.
Offering a contrasting view, Curtis LeGeyt, president and CEO of the National Association of Broadcasters, argued that consolidation has enabled greater investment in local journalism.
"Some argue that allowing broadcasters to achieve greater scale would reduce local news. The data shows just the opposite," LeGeyt testified.
"Over the past decade, as broadcasters gained modest additional scale, the number of local news telecasts and hours of locally produced news increased substantially."
LeGeyt maintained that retransmission revenues have declined in recent years and that broadcasters face intense competition from digital platforms that are not subject to the same ownership limits.
"More than half of local broadcast newsrooms in this country are not profitable," he said.
"In those instances where broadcast owners are able to gain some scale, you are able to see more journalism happening in those communities."
Supporters of the Nexstar-Tegna transaction have argued that expanded scale is necessary to compete with streaming services and technology firms that command large advertising shares without comparable regulatory constraints.
Despite divergent views on the merits of consolidation, the hearing highlighted bipartisan guardrails around process and authority.
Both Cruz and Cantwell appeared to agree that the 39% ownership cap was set by Congress and cannot be easily altered by the FCC alone.
Ruddy emphasized the point by saying, "Congress set the cap and only Congress can change it."
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