FCC Clarifies Section 310(b) Foreign Ownership Rules: A Small Step Toward Regulatory Sanity

By Blake Reed

The Federal Communications Commission’s Media Bureau has issued new guidance that brings some clarity to broadcasters struggling with inadvertent violations of the agency’s foreign ownership restrictions.

Released as DA 26-501, the document sets out how the FCC will process various broadcast applications while a licensee has a pending Remedial Foreign Ownership Petition under Section 310(b) of the Communications Act.

Section 310(b) imposes strict limits on foreign ownership and control of U.S. broadcast licenses. When companies discover they have unintentionally exceeded these limits — often due to layered investment structures — they can file a remedial petition seeking retroactive approval to get back into compliance. Until now, the lack of clear rules created significant uncertainty about whether routine business filings would be delayed or blocked.

Under the new procedures, routine operational applications will generally continue to be processed normally. Transfer of control and assignment applications will typically move forward but with conditions limiting the influence of the unapproved foreign ownership. However, major applications — such as new construction permits, major modifications, license renewals, and other significant actions — will generally be held in abeyance until the remedial petition is resolved.

This tiered approach is a slight improvement. It allows broadcasters to keep day-to-day operations running while ensuring major transactions receive proper scrutiny on foreign ownership questions. In an era when media companies routinely tap global capital markets, clearer rules help reduce unnecessary regulatory risk.

Still, the guidance underscores a deeper problem: Section 310(b) is still an outdated and overly restrictive framework. The current ownership caps and complicated review process create traps for the suspecting and can unnecessarily delay legitimate business activity. Broader reform — including raising the foreign ownership thresholds and streamlining the approval process — would better reflect today’s global investment environment while continuing to protect core national security interests.

The FCC’s latest guidance is a welcome step toward more practical administration of these rules. But it also highlights why Congress and the FCC should pursue meaningful modernization of Section 310(b) rather than forcing broadcasters to navigate an increasingly complex compliance maze.

To read the full FCC Media Bureau guidance (DA 26-501), click here.