Here are two items worth noting, courtesy of the FCC:
- Postponement of the 2025 Biennial Ownership Reports; and
- EEO Audit Letters are out to randomly tagged licensees, but watch for DEI issues
The FCC has officially postponed the biennial ownership report filing requirement for broadcasters until June 1, 2027, marking a significant regulatory shift under its ongoing “Delete, Delete, Delete” initiative.
The federal government’s policies regarding Diversity, Equity, and Inclusion (DEI) initiatives have undergone significant changes recently. This appears to be having a real impact on the recently released EEO Audit requirements.
FCC Postponement of Biennial Ownership Reports:
Key Details:
- Original Deadline: Reports were due by December 1, 2025, covering ownership as of October 1, 2025.
- New Deadline: Extended to June 1, 2027, or until further notice.
- Scope of Suspension: Applies to biennial reports (Form 323 and 323-E) for full-power broadcasters and LPTV licensees.
- Still Required: Ownership reports tied to assignments, transfers, or new construction permits remain mandatory.
Reasons for the Postponement:
- Regulatory Review: The FCC is reassessing whether the biennial ownership report still serves a meaningful regulatory purpose.
- Redundancy: Much of the ownership data is already captured through other filings, such as license applications and post-transaction reports.
- Limited Utility: The reports do not trigger FCC review or approval and have been criticized for offering little actionable insight.
- Affirmative Action Concerns: The reports are the only FCC filings requiring disclosure of race and gender of ownership. Given the current administration’s stance on race- and gender-based affirmative action, this justification is under scrutiny [1].
Industry Reaction:
- Broadcasters, especially smaller entities, have long argued that the biennial reports are costly, duplicative, and ineffective.
- The National Association of Broadcasters (NAB) and others have pushed for reform or elimination, citing minimal impact on diversity and high compliance burdens.
This move is part of a broader FCC effort to reduce regulatory paperwork and reevaluate legacy obligations. Other filings, like Annual EEO Reports and Quarterly Issues/Programs Lists, may also be under review.
FCC Audit Letters:
Recent changes to the FCC’s EEO audit letters seem to indicate a shift in focus. The audit letters now include several new questions that seem designed to identify DEI-related policies and practices that could be considered discriminatory under the current administration’s interpretation of the Communications Act.
On January 21, 2025, President Donald Trump issued Executive Order (EO) 14173, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” This EO revokes several executive actions that promoted DEI in federal programs and sets the stage for ending affirmative action in the federal government, at least when it arguably violates applicable federal antidiscrimination laws.
The recent changes primarily target federal contractors and grant recipients. These policies mandate that federal contractors and grant recipients certify that they do not maintain DEI and affirmative action programs that violate applicable federal antidiscrimination laws. Regardless, the current administration’s policies are focused on ending affirmative action and DEI programs that are seen as violating federal antidiscrimination laws, and contractors and grant recipients are required to certify compliance with these new policies.
Here are some key components of the audit letters:
Internal Complaints: Stations are asked to report any internal or external complaints related to bias, sensitivity, or other matters involving race, color, religion, national origin, or sex—even if those complaints were not filed with government agencies.
Employee Sanctions: Stations must disclose if any employees were reprimanded, demoted, or otherwise sanctioned for failing to comply with DEI-related policies.
DEI Agreements and Policies: Licensees are required to submit any formal or informal agreements, contracts, or policies that impose goals or requirements based on race, color, religion, national origin, or sex—including those affecting contractors or third-party service providers.
Race-Based Hiring Databases: Stations must list and describe any use of race-based hiring databases and specify the positions for which they were used.
All this seems to align with Chairman Carr’s broader efforts to roll back DEI initiatives, which he has publicly described as “invidious forms of discrimination”. The inclusion of these questions in the audit letters—without prior public notice or rulemaking—has raised concerns among legal experts and broadcasters about the clarity and fairness of the process. Nevertheless, that’s the way it is.
