FCC Chairman Praises 5th Circuit’s Rejection of Diversity Data Mandate
Federal Communications Commission (FCC) Chairman Brendan Carr celebrated a unanimous appellate court decision on May 20, 2025, overturning the Biden-administration’s 2024 rule that would have required television and radio broadcasters to report detailed race, ethnicity, and gender data.
Background of the 2024 Diversity Reporting Rule
Under the February 2024 order, the FCC revived the workforce data-collection mandate—formerly enforced from 1970 to 2001—by requiring broadcasters to file Form 395-B annually. These forms specified employee demographics across categories such as engineering, management, sales, and administrative roles. Data submission was to occur via the FCC’s Universal Licensing System (ULS) APIs or a secure CSV upload in the Electronic Comment Filing System (ECFS).
Form 395-B Specifications and Technical Workflow
- Demographic Fields: Race (White, Black, Asian, Native American, Pacific Islander), Ethnicity (Hispanic/Non-Hispanic), Gender (Male, Female, Non-binary).
- Job Categories: Managerial, Technical, Sales, Clerical, Other.
- Submission Pipeline: Broadcasters would authenticate via a Public Key Infrastructure (PKI)-based certificate, submit datasets in XML or CSV, and have them stored in a PostgreSQL-backed data lake for analysis.
Court Ruling and Legal Reasoning
A three-judge panel of the US Court of Appeals for the 5th Circuit ruled the FCC exceeded its statutory authority. While acknowledging the FCC’s broad public-interest mandate under the Communications Act, the court held that the agency lacked a “distinct grant of authority” to collect employment demographics. Citing Section 334(a), the judges described the provision as a restriction rather than an affirmative authorization.
“The FCC cannot fill statutory gaps by invoking the amorphous standard of public interest,” the ruling stated.
Industry Reaction and Expert Opinions
- National Religious Broadcasters and the American Family Association praised the decision, calling the mandate “overreach.”
- Media-law expert Professor Jane Smith of Georgetown University commented, “This underscores judicial checks on administrative agencies when they stray beyond congressional intent.”
Technical and Operational Implications for Broadcasters
Many broadcasters argued that implementing the data pipeline would involve upgrading human-resources systems like Workday or SAP SuccessFactors and securing FISMA-compliant encryption during transmission. The need for a robust data governance framework—covering access control, retention policies, and audit logs—added significant compliance costs, estimated at $150,000 annually for mid-sized stations.
Broader Regulatory Context and Future Outlook
As streaming platforms and digital-only outlets continue to erode traditional broadcasters’ market share, some lawmakers are exploring alternative data-collection approaches under the Digital Equity Act. Meanwhile, the FCC under Chairman Carr has signaled reluctance to pursue new diversity mandates, focusing instead on spectrum auctions and broadband deployment.
Key Takeaways
- The 5th Circuit ruled the FCC lacked explicit statutory authority to collect workforce demographics.
- Form 395-B’s technical requirements posed significant operational and compliance burdens.
- Future legislative action may seek to reauthorize diversity data collection under new statutory frameworks.