A federal appeals court has struck down the FCC’s workplace diversity reporting rule, declaring it an unauthorized overreach lacking congressional approval.
At a Glance
- Fifth Circuit Court invalidated the FCC’s 2024 Form 395-B workplace diversity rule
- Ruling says the FCC lacks statutory authority to mandate broadcaster demographic reporting
- Judge Jennifer Elrod emphasized public interest claims can’t expand unauthorized powers
- Broadcasters and religious groups praised the decision as a First Amendment win
- FCC will not appeal, maintaining the long-standing pause on data collection since 2001
Judicial Smackdown on Regulatory Overreach
In a major rebuke to the Federal Communications Commission, the Fifth Circuit Court has nullified an agency directive that required U.S. broadcasters to submit demographic data about their employees. The court’s ruling dismantled the FCC’s 2024 Form 395-B mandate, which sought detailed reporting on race, ethnicity, and gender in an effort to promote workplace diversity.
The decision, led by Circuit Judge Jennifer Walker Elrod, clarified that while the FCC’s charter allows broad regulation in the public interest, it cannot act beyond what Congress explicitly permits. “The FCC cannot invoke public interest to expand the scope of its authority to act in ways Congress has not authorized it to act,” Elrod wrote, slicing through the agency’s rationale with constitutional precision.
Watch a report: Court overturns FCC diversity order.
The rule’s roots stretch back to the FCC’s earlier Equal Employment Opportunity efforts, which were paused in 2001 amid legal challenges. In 2024, the agency attempted a revival via Form 395-B, mandating the submission of workplace demographics. But broadcasters quickly challenged the requirement, calling it unlawful and potentially coercive.
Free Speech Defenders Applaud the Ruling
The victory was loudly celebrated by industry and advocacy groups. “Texas broadcasters are immensely pleased with the outcome of this ruling,” said Oscar Rodriguez, president of the Texas Association of Broadcasters. Mike Farris, representing the National Religious Broadcasters, called it a “strong defense of the First Amendment.”
FCC Commissioner Brendan Carr, a vocal opponent of the rule, also welcomed the outcome. “The FCC’s 2024 decision was an unlawful effort to pressure businesses into discriminating based on race & gender,” Carr said, affirming the court’s restraint as a check on administrative overreach.
This ruling mirrors a broader judicial trend that scrutinizes agency power expansions—especially those that may brush up against constitutional liberties or rely on vague mandates.
Legal Limits and Legislative Lines
The Fifth Circuit’s ruling underscores a pivotal legal principle: agencies like the FCC must remain tethered to the powers granted by Congress. In this case, the court found no sufficient statutory basis under the Communications Act or subsequent legislation to support the kind of demographic mandates proposed.
Crucially, the FCC will not seek an appeal, effectively halting any immediate future attempts to reinstate mandatory demographic tracking for broadcasters. With the Form 395-B program now legally dead, the status quo from 2001 remains intact.
As regulatory agencies continue to push the boundaries of their mandates, this decision stands as a firm reminder: no matter how well-intentioned, administrative goals cannot override legislative authority or constitutional limits.
