The Federal Communications Commission voted to eliminate the national television ownership cap Thursday, clearing the way for broadcasters to pursue significantly larger station portfolios across the United States.

The commission voted 2-1 to repeal a rule preventing a single company from owning television stations reaching more than 39% of U.S. television households. Republican Chairman Brendan Carr and Commissioner Olivia Trusty supported the change, while Democratic Commissioner Anna Gomez dissented.

Under the new framework, transactions exceeding the former 39% threshold will instead undergo individual FCC reviews to determine whether they serve the public interest. The commission said those assessments can consider competition, localism and viewpoint diversity, allowing regulators to approve or reject transactions based on their specific circumstances.

Carr has argued the ownership restriction no longer reflects the modern media environment, where streaming services and digital platforms can reach audiences nationwide without comparable limits. The FCC said eliminating the cap could give traditional broadcasters greater access to investment and advertising revenue while strengthening their ability to compete against larger digital companies.

The national limit had stood at 39% since 2004. Previous FCC rules calculated a broadcaster’s national reach using the television households located in markets where its stations operate, with certain UHF stations receiving discounted treatment under the formula.

Opponents argue the decision could accelerate consolidation of local television stations and concentrate greater control of programming and news operations among a smaller number of companies. Gomez also disputed the commission’s legal authority to eliminate the limit, arguing that congressional action is required to change the 39% threshold.

The FCC maintains that the Communications Act gives it authority to alter broadcast ownership rules and said Congress has never withdrawn that power. The disagreement is expected to form a central issue in potential legal challenges to the decision.

The change could have significant implications for major station groups seeking acquisitions. Nexstar Media Group’s acquisition of Tegna was previously approved using a waiver of the ownership cap, a combination that would give Nexstar stations reaching roughly 80% of U.S. television households if the transaction survives ongoing court challenges.

The FCC’s new policy removes the nationwide numerical ceiling but does not provide automatic approval for future broadcast mergers, which will remain subject to regulatory and public-interest review.