Overview of the Section 310(b) Report and Order
On January 29, 2026, the Federal Communications Commission adopted a Report and Order in GN Docket No. 25-149 (FCC 26-3), released on January 30, 2026. The decision updates and republishes Subpart T of Part 1 (47 CFR §§ 1.5000 through 1.5004) to formalize policies and practices developed over the past decade regarding foreign ownership reviews under Section 310(b) of the Communications Act of 1934, as amended.
The updated regulations apply to broadcast licensees and permittees, common carrier wireless entities, aeronautical en route and aeronautical fixed radio station licensees, and common carrier spectrum lessees. The revisions aim to enhance transparency, streamline petition processing, and provide regulatory certainty while maintaining comprehensive national security and public interest oversight.
- FCC Docket: GN Docket No. 25-149
- FCC Document Number: FCC 26-3 (Report and Order)
- Adoption Date: January 29, 2026; Release Date: January 30, 2026
- Effective Date: 30 days after Federal Register publication following OMB review
Core Changes for Common Carrier and Broadcast Licensees
The Commission codified several foundational definitions and filing procedures to govern initial and remedial Section 310(b)(4) petitions for declaratory ruling:
Controlling U.S. Parent Definition: Section 1.5000(d) now formally defines the controlling U.S. parent as the first controlling entity organized in the United States that is directly above the licensee(s) in the vertical chain of control and does not itself hold a license subject to Section 310(b).
Deemed Voting Interests and Advance Approval: Rules under Section 1.5001(i) and Section 1.5001(k) clarify that a finding of a deemed voting interest of 50 percent or greater in a limited partnership (LP) or limited liability company (LLC) reflects potential influence rather than automatic de jure or de facto control. Uninsulated foreign investors holding deemed voting interests without actual control may seek advance approval to increase their equity and/or voting interests up to a non-controlling cap of 49.99 percent.
Trust and Trustee Disclosures: Under Section 1.5001(e), (f), and (i), petitioners must explicitly identify the name(s) of the trustee(s) for any trust holding disclosable or attributable equity, voting, or controlling interests in the chain of ownership.
Remedial Safe Harbor for Privately Held Entities: The remedial process under Section 1.5004(f)(3) and (f)(4) has been extended from public companies to privately held entities. Licensees must notify the Media Bureau or Office of International Affairs within 10 days of learning of inadvertent non-compliance and file a petition or remedy the violation within 30 days. To qualify for the safe harbor against enforcement, the non-compliance must stem from circumstances beyond the licensee's control that were not reasonably foreseeable with due diligence. Blanket calculation methodologies remain available to private entities on a case-by-case basis.
Contents of Remedial Petitions: Section 1.5004(f)(5) codifies that remedial petitions must contain all information required for a complete initial Section 310(b) petition rather than solely addressing newly discovered non-compliant interests.
Petition Amendments: Section 1.5000(b) establishes that substantial amendments to pending petitions must be submitted as complete restatements with explanatory cover letters via ICFS (for common carriers) or ECFS (for broadcasters). Ministerial changes may be submitted as targeted amendments or supplements.
U.S. Residency Clarification: The Commission clarified that foreign investors seeking approval are not required to maintain U.S. residency, though licensees must maintain a designated U.S. point of contact and legal agent for service of process.
Broadcast-Specific Determinations and Governance Rules
The Report and Order introduced specific administrative guidance and governance assessments for the broadcast sector:
Processing Guidelines During Remedial Petitions: The Commission directed and delegated authority to the Media Bureau to release processing guidelines governing broadcast applications while a remedial Section 310(b)(4) petition is pending. Routine operational filings (such as minor modifications or special temporary authority) may proceed normally, while non-routine filings (such as transfers of control, assignments, renewals, or major modifications) will face heightened scrutiny or insulating conditions.
Noncommercial Educational (NCE) and Low Power FM (LPFM) Stations: To assess foreign ownership compliance under Section 310(b) for non-stock entities lacking traditional equity, the FCC evaluates the composition of the station's governing board. Each board member is deemed to hold a pro rata voting share (e.g., 20 percent each on a five-member board), unless governing bylaws or organizational documents permitted under state law formally establish a non-pro rata voting structure.
NCE Construction Permit Windows: Entities exceeding statutory benchmarks under Section 310(b)(4) without an existing ruling may apply in NCE filing windows provided they submit a Section 310(b)(4) petition concurrently with their window application. Section 310(b)(3) limits of 20 percent direct foreign ownership remain strictly applicable to broadcast applicants.
Procedural Matters and Next Steps
The Commission declined proposals from the National Association of Broadcasters (NAB) to establish strict processing shot clocks for public notices or to create categorical exemptions from Executive Branch committee referrals for known foreign investors. The FCC also rejected suggestions to prohibit all foreign investment in U.S. broadcast stations.
The adopted rules apply prospectively to petitions and applications filed on or after the effective date. Pending applications and petitions filed before the effective date will be evaluated under the rules in effect at the time of their original filing.
- Rule Republication: Republishes 47 CFR Subpart T (§§ 1.5000–1.5004)
- Bureau POC: Fara Mohsenikolour, Telecommunications and Analysis Division, Office of International Affairs
- Congressional Review: Classified as non-major under 5 U.S.C. § 804(2)