FCC Unveils 2024 Regulatory Fees, Ends ‘Dark Station’ Waivers

The FCC has confirmed its annual regulatory fee schedule, with a notable decrease in how much radio broadcasters will pay for fiscal year 2024. The FCC aims to collect $390,192,000, as outlined in a 149-page Report and Order.

A notable change in the 2024 fee schedule is the FCC’s decision to end the “dark station presumption” policy, which previously allowed financially distressed stations that were off the air or recently bankrupt to automatically qualify for fee waivers. This decision, which will take effect in FY 2025, has been met with significant opposition from state broadcasters’ associations and the NAB.

Under the old policy, the FCC presumed that stations going dark were facing financial hardship severe enough to justify waivers of their regulatory fees. Broadcasters argued that when stations are silent, they naturally lose revenue, making it difficult to pay fees and potentially preventing them from resuming operations. However, the FCC countered that the circumstances underlying the policy are no longer accurate and that many silent or recently purchased stations have access to other financial resources.

The elimination of the dark station presumption will not impact FY 2024 fees but will take effect for FY 2025, signaling a shift toward stricter scrutiny of fee waiver requests and financial assessments of licensees.

The fee differential from the year before will save radio broadcasters anywhere from $100 to around $1,000 dollars, depending on market size.

AM Radio Construction Permits are priced at $585 each. FM Radio Construction Permits are slightly higher, costing $1,025. Additionally, fees for FM Translators and FM Boosters are set at a lower rate of $245.

While the FCC is making changes to some policies, it will continue to offer limited pandemic-related relief for fee payors in FY 2024. The Office of Managing Director will assess the lowest interest rate permitted by statute and will forego the customary down payment requirement for those eligible for installment payment plans.

With the Report and Order’s release, FCC Commissioner Brendan Carr took the opportunity to voice his partial support of the FY 2024 fee order but dissent on certain aspects, noting that the process of setting and collecting fees often involves cumbersome and outdated procedures that consume significant staff time and resources.

Commissioner Carr commented, “Fundamentally, I believe the Commission can make even more progress in maximizing our efficiency as a government agency. And that starts with first principles thinking. Question every requirement. Delete unnecessary processes. Then simplify and optimize. If we start there first, then our regulatory fee process will align more closely with efficient outcomes.”