Senate Subcommittee to Address Local Radio Royalties
Next week, the ongoing discussion about whether local radio broadcasters should be mandated to pay a federal performance royalty is set to take center stage in Washington, D.C. The Senate Judiciary Subcommittee on Intellectual Property will convene on Tuesday, December 9, for a hearing titled “Balancing the Interests of Local Radio, Songwriters, and Performers in the Digital Age.”
Leading the hearing will be Subcommittee Chairman Senator Tom Tillis from North Carolina, who has historically aligned with music industry groups on royalty matters. Senator Marsha Blackburn from Tennessee, a co-sponsor of the American Music Fairness Act (AMFA), will also participate. The AMFA proposes a federal performance tax on radio broadcasters, a move that faces strong opposition from the broadcasting sector, including the National Religious Broadcasters (NRB) and its affiliates.
The list of scheduled witnesses underscores the deepening divide between radio broadcasters and the music industry. Notable figures like Gene Simmons, co-founder of KISS, and SoundExchange President & CEO Mike Huppe will testify, while local broadcaster perspectives will be represented by Henry Hinton, President & CEO of Inner Banks Media, which operates several stations in Greenville, North Carolina.
For the NRB, this debate goes beyond a simple conflict between the recording industry and mainstream music stations. The implications of a new performance tax are particularly significant for Christian, talk, teaching, and ministry broadcasters. Although NRB stations primarily focus on spoken-word and faith-based content, they already incur substantial licensing fees to organizations like ASCAP, BMI, SESAC, and GMR for music used in various formats. A federal performance royalty layered on top of these existing fees could divert essential resources from ministry and outreach efforts, impacting local engagement and programming that fulfills the spiritual needs of their audiences.
The NRB advocates for the Local Radio Freedom Act (LRFA), a bipartisan resolution that asserts Congress should not impose a performance fee, tax, or royalty on local broadcasters for airing sound recordings over-the-air. While the LRFA lacks the force of law, it has historically served as a protective measure against the imposition of a federal performance tax.
For Christian broadcasters, the financial ramifications would be immediate. Many NRB members operate as small, local, donor-supported, or nonprofit stations. Under the AMFA, even the smallest stations would be required to pay a minimum of $500 annually in new royalties, without any cap on potential future increases. The bill also does not include a religious exemption and its eligibility thresholds could exclude numerous NRB members.
Beyond the financial burden, the NRB contends that new federal taxes on broadcasters could undermine the independence and local responsiveness of Christian stations, particularly during emergencies or community crises when broadcasters often act as vital sources of information.
The hearing is also taking place as support grows for the AM Radio for Every Vehicle Act, which has garnered over 315 cosponsors in the House and enjoys strong bipartisan backing. Some critics of the AM legislation have sought to link it with the performance tax issue, raising concerns that this confluence could complicate progress on the AM bill, which is otherwise poised for congressional action.
The NRB is closely monitoring developments and actively engaging lawmakers and coalition partners in anticipation of the hearing. They will provide updates to their members as more information becomes available. For more information about the NRB’s advocacy efforts, visit nrb.org.