US agency ends 39% household cap on local TV station owners

Carr says the change would allow local TV station owners to increase investment in local programming and give them more leverage against national networks, which he says have too much power.

In March, the FCC approved the $3.54 billion sale of local TV station owner Tegna to Nexstar NXST.O despite objections from Democratic-led states.

The acquisition, if not reversed by courts, will expand Nexstar's presence to cover 80% of U.S. TV households. The FCC has said it was waiving the 39% rule in approving the deal.

Senate Commerce Committee Chair Ted Cruz, a Republican from Texas, said last month he is skeptical the FCC can hike the 39% cap without an act of Congress.

Senator Elizabeth Warren, a Massachusetts Democrat, said Carr "is trying to illegally rewrite the rules to make it easier for billionaires to line their own pockets while jacking up costs and controlling what Americans watch."