2026-06866RuleWallet

FCC Revises Foreign Ownership Caps for Broadcast and Radio Licenses

Published Date: 4/9/2026

Rule

Summary

The FCC updated rules about foreign ownership for broadcast, phone, and airplane radio license holders to make things clearer and fairer. These changes affect companies with foreign investors by tightening who controls U.S. companies and how ownership info is shared. The new rules kick in on May 11, 2026, so affected businesses should get ready to follow them and avoid delays or extra paperwork.

Analyzed Economic Effects

9 provisions identified: 2 benefits, 3 costs, 4 mixed.

Limits on Advance Approval for Deemed Voting Interests

The FCC codifies that a foreign person with a deemed voting interest of 50% or more may request advance approval only to increase interest up to a non-controlling 49.99% voting and/or equity interest, unless the foreign person actually has de jure or de facto control, in which case advance approval up to 100% may be requested.

Who Counts as the U.S. Controlling Parent

The FCC defines the "controlling U.S. parent" as the first controlling entity organized in the United States that sits directly above the licensee in the vertical chain of control and that does not itself hold a license subject to Section 310(b). This definition is used to calculate aggregate foreign ownership in Section 310(b)(4) petitions.

Private Companies Get Safe Harbor Remedial Process

Privately held U.S. licensees may now use the FCC's remedial filing process (previously available to public companies) for inadvertent non-compliance with foreign ownership benchmarks, and if they meet the safe-harbor elements, the Commission does not expect to take enforcement action.

Remedial Petitions Must Be Full New Petitions

When filing remedial Section 310(b) petitions, petitioners must include all information required for an initial declaratory ruling petition, not just information about newly discovered non-compliant interests; this applies to both public and privately held companies.

Media Bureau Will Issue Broadcast Processing Guidelines

The FCC directs the Media Bureau to publish processing guidelines explaining how the agency will handle broadcast applications while a remedial Section 310(b)(4) petition is pending, including which routine applications may proceed and which non-routine matters may receive heightened scrutiny.

How NCE/LPFM Governance Counts for Foreign Ownership

For noncommercial educational (NCE) and low power FM (LPFM) stations, the FCC will assess foreign ownership by looking to governing boards or other governance documents; absent non-pro rata bylaws, each board member is deemed to hold equal voting shares (e.g., five members = 20% each). NCE/LPFM applicants with foreign ownership above benchmarks may participate in filing windows only if they file a Section 310(b)(4) petition at the same time and remain subject to the 20% limit under Section 310(b)(3).

Trustee Names Must Be Disclosed for 10%+ Interests

Petitioners must identify the trustee(s) of any trust that is a disclosable interest holder when the trust holds, or would hold, a direct or indirect interest of 10 percent or more or a controlling interest in the controlling U.S. parent. This requirement is codified in Sections 1.5001(e), (f), and (i).

Amendments: Complete Restatements for Substantial Changes

For substantial changes to a pending Section 310(b) petition, petitioners must file a complete restatement of the initial petition in ICFS (common carriers) or ECFS (broadcasters) with a cover letter describing the change; ministerial changes may be filed as targeted amendments.

No U.S. Residency Required for Foreign Investors

The FCC clarified that there is no Commission requirement that foreign investors maintain U.S. residency when investing in companies subject to Section 310(b); lack of U.S. residence is not a factor in the public interest analysis.

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Key Dates

Published Date
Rule Effective
4/9/2026
5/11/2026

Department and Agencies

Department
Independent Agency
Agency
Federal Communications Commission
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