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31 January 2025

FCC Launches Investigation Into NPR And PBS Sponsorships

Chairman Brendan Carr's inquiry raises concerns over potential violations of federal law and future funding decisions.

Brendan Carr, the chairman of the Federal Communications Commission (FCC), has ordered an investigation focusing on the sponsorship practices of National Public Radio (NPR) and the Public Broadcasting Service (PBS). The inquiry raises significant concerns over whether the two outlets are violating federal law by airing commercial advertisements.

According to a letter obtained by CNN, Carr expressed alarm over the possibility of NPR and PBS broadcasts infringing upon regulations governing noncommercial educational stations. "I am concerned NPR and PBS broadcasts could be violating federal law by airing commercials," Carr stated, emphasizing the need to protect the integrity of noncommercial educational public broadcasting.

This investigation entails examining underwriting announcements aired by NPR and PBS, which have historically garnered revenue through acknowledgments of their financial sponsors. While these sponsorships are meant to provide basic information about the entities supporting the programming, they cannot serve as traditional advertisements urging viewers to buy products or services.

Carr's letter, dated January 29, 2025, pointed out concerns about whether public broadcasters were illegally broadcasting announcements crossing the line to become prohibited commercial advertising. The FCC chair highlighted the fact these sponsorships must adhere to federal definitions and limits set forth for noncommercial educational broadcasters.

Both NPR and PBS responded to the investigation by defending their practices; NPR CEO Katherine Maher asserted, "We are confident any review of our programming and underwriting practices will confirm NPR’s adherence to these rules." Similarly, PBS President Paula Kerger stated, "PBS is proud of the noncommercial educational programming we provide to all Americans... We work diligently to comply with the FCC’s underwriting regulations and welcome the opportunity to demonstrate this to the Commission." These comments show NPR and PBS's commitment to maintaining compliance with existing regulations.

Context surrounding this investigation reveals also shifting political winds. Carr noted his intention to share his findings with relevant members of Congress, as lawmakers have been discussing the potential elimination of taxpayer funding for NPR and PBS. His letter cautioned against the utilization of public funds if these entities were determined to be veering too close to commercial broadcasting. "To the extent taxpayer dollars are being used to support a for-profit endeavor...that would undermine any case for continuing to fund NPR and PBS with taxpayer dollars," Carr cautioned.

Political ramifications were poised to escalate as Democrats on the FCC expressed concern over Carr's actions. Commissioner Anna Gomez described the inquiry as "yet another Administration effort to weaponize the power of the FCC," expressing her disdain for the FCC's approach toward public media. Commissioner Geoffrey Starks also echoed these sentiments, indicating substantial fears surrounding the intimidation of public broadcasting stations and their role within the media ecosystem.

For decades, NPR and PBS have relied on various funding sources. NPR, on average, receives around 1% of its funding directly from the federal government, and PBS receives approximately 16%. Federal funding has traditionally supported programming at public media outlets, and these stations have increasingly turned to underwriting to fill the gaps left by government funding reductions.

With Congress now entertaining discussions about defunding public broadcasting, NPR and PBS executives have been bracing for various worst-case financial scenarios. The current investigation complicates these efforts significantly, as it is urgent and relevant amid broader legislative debates about the future of public media.

Carr's inquiry is not merely limited to operational guidelines; it taps deeply at the core of federal funding for these public networks. His comments reflect the changing dynamics of the media marketplace since the passage of the Public Broadcasting Act of 1967. Such historical shifts evoke tender discussions about whether NPR and PBS still warrant taxpayer funding as they explore alternative ways to remain viable.

While Carr has taken noticeable steps away from the consensual approach seen under previous leadership, the echo of past presidential rhetoric on public broadcasting persists. During his tenure, former President Trump routinely battled against NPR and PBS's funding efforts, indicating no significant difference from the current stance taken by Carr, who was appointed under Trump.

With the FCC investigation now officially underway, questions arise about the future of federal funding for NPR and PBS. The outcome of this investigation will not only shape public broadcasters' operations but may also seek to redefine the very fabric of public broadcasting and its mission of providing impartial news and educational programming to the American public. Consequently, the repercussions of Carr's actions will reverberate throughout the media industry, possibly stifling the flow of information consumers have come to rely on.