Defunding Public Radio’s Effect on Commercial Stations

President Trump’s order to eliminate federal funding for NPR and local public radio stations could reshuffle the battle for ad support at a time when the industry is suffering from declining revenue – it affects public broadcasting but may also have an impact on commercial radio.

  • While NPR itself receives less than 1% of its direct funding from the federal government, many local stations depend heavily on grants from the Corporation for Public Broadcasting (CPB) which channels over $500 million annually in congressional funds to public media.
  • NPR and PBS stations rely on federal funding for an average of 13% and 18% of their budgets, respectively.
  • To make up the shortfall, traditional radio advertisers will have to be targeted and it is not altogether clear whether commercial radio and public competitors will find a solution.

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