FCC to Vote on Modernizing Foreign Ownership Rules

WASHINGTON, April 9, 2025 – The Federal Communications Commission will vote later this month on a proposal to modernize and clarify its rules for reviewing foreign ownership of U.S. broadcast, telecom, and aeronautical radio licensees.

“In at least some cases, the Commission has never codified these legal requirements into our rules,” the FCC wrote in a 102-page proposed rulemaking released Monday, which will be considered at its April 28 open meeting.

“We believe that these proposals will assist petitioners in providing the relevant information in their initial filings, minimize the need for supplemental filings, and promote efficient and shorter processing times of Section 310(b) petitions.”

Section 310(b)(4) of the Communications Act has historically capped foreign ownership of U.S. broadcast licensees at 25%.

However, in 2013, the FCC first opened the door to 100% foreign ownership on a case-by-case basis, using a declaratory ruling process, which involved detailed review, including by national security agencies, like the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector — commonly known as Team Telecom — an interagency group that assesses national security risks tied to foreign investment.

In 2015, the FCC issued a rulemaking to formalize these procedures, and in 2016, the commission adopted a final order establishing the framework now codified in 47 C.F.R. § 1.5000.

While the FCC supports foreign capital as a driver of innovation and growth, it says “certain foreign investment may raise national security risks and other concerns,” especially those involving foreign trusts or complex corporate structures.

Lawmakers want the FCC to also look more broadly at foreign access to broadcast platforms, not just ownership shares.

In February, Sen. Rick Scott, R-Fla., and Rep. Jim Banks, R-Ill., urged FCC Chair Brendan Carr to investigate whether foreign entities of concern, including Chinese e-commerce platform Temu, posed a national security risk for advertising on U.S. airwaves during high-profile broadcasts like the Super Bowl.