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The Corporation for Public Broadcasting:
Federal Funding and Issues
Mark Gurevitz
Information Research Specialist
Glenn J. McLoughlin
Section Research Manager
November 12, 2009Mark Gurevitz
Information Research Specialist
October 26, 2010
Congressional Research Service
7-5700
www.crs.gov
RS22168
CRS Report for Congress
Prepared for Members and Committees of Congress
c11173008
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The Corporation for Public Broadcasting: Federal Funding and Issues
Summary
The Corporation for Public Broadcasting (CPB) receives virtually all of its funding through federal
federal appropriations; overall, about 15% of all public television and radio broadcasting funding comes
comes from the federal appropriations that CPB distributes. CPB’s appropriation is allocated
through a
distribution formula established in its authorizing legislation and has historically
received twoyeartwo-year advanced appropriation. For FY2010appropriations. For FY2011, the CPB appropriation is $420430 million,
and for
FY2011 FY2012 it will be $430445 million (passed as a part of the FY2008 and FY2009 FY2009 and FY2010
appropriation bills,
respectively). The Obama Administration has requested $440460 million for the current
F2011 appropriations request now being considered by Congress (for FY2012). This report addresses the
(but which would go into effect in FY2013).
On Wednesday, October 20, 2010, Juan Williams, a reporter for National Public Radio (NPR),
was fired for comments he made on the Fox News Channel regarding Muslims. Since that
incident, some have questioned the process and fairness of this firing, which in turn has raised
questions about any federal funding that supports NPR policies and programs. Beyond that issue,
this report addresses the components of federal support for public broadcasting, as well as briefly
describing those issues
facing public television and public radio. This report will be updated as
events warrant.
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The Corporation for Public Broadcasting: Federal Funding and Issues
Contents
Background ................................................................................................................................1
Corporation for Public Broadcasting ...........................................................................................1
Public Television: PBS................................................................................................................2
Public Radio: NPR and PRI ........................................................................................................2
Federal Funding ..........................................................................................................................23
Issues..........................................................................................................................................36
Tables
Table 1. CPB Federal Appropriations FY2001- FY2011 ..............................................................3............................4
Contacts
Author Contact Information ........................................................................................................57
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The Corporation for Public Broadcasting: Federal Funding and Issues
Background
The Corporation for Public Broadcasting (CPB) was incorporated in 1967 as a private nonprofit
corporation under the authority of the Public Broadcasting Act of 1967 (P.L. 90-129). CPB
funding promotes public television and radio stations and their programs. These CPB-funded
stations reach virtually every household in the United States. CPB is the largest single source of
funding for public television and radio programming.
Most CPB-funded television programs are distributed through the Public Broadcasting Service
(PBS) created in 1969 by CPB. CPB-funded radio programs are distributed primarily through the
National Public Radio (NPR), created in 1970 by CPB, and the Public Radio International (PRI).
The number of radio and television public broadcasting stations supported by CPB increased
from 270 in 1969 to 1,050 in 2009,1 of which 356 are television stations. Public broadcasting
stations are mostly run by universities, nonprofit community associations, state government
agencies, and local school boards.
Corporation for Public Broadcasting
CPB is a nonprofit private corporation and is guided by a nine-member board of directors. These
directors are appointed by the President with the advice and consent of the Senate. The directors
serve for staggered six-year terms. The current chairman is Dr. Ernest Wilson III, elected by the
board of directors in September 2009. The CPB’s principal function is to receive and distribute
government contributions (or federal appropriations) to fund national programs and to support
qualified public radio and television stations based on legislatively mandated formulas. The bulk
of these funds, including the matching funds received from non-federal sources, are used to
provide Community Service Grants (or CSGs) to stations that meet specified eligibility criteria.
CPB exercises minimum control of program content and other activities of local stations, and is
prohibited from owning or operating any of the primary facilities used in broadcasting. In
addition, it may not produce, disseminate, or schedule programs. The current president and CEO
of CPB is Patricia de Stacy Harrison, appointed by the board of Directors in June 2005.
Approximately 15% of all public television and radio broadcasting funding comes from the
federal appropriations that CPB distributes.2 However, among individual public broadcasting
stations, the amount of federal dollars that contributes to a station’s annual budget depends on the
funds it receives from non-federal sources; the number and extent of broadcast transmitters
required to service its coverage area; the extent to which a station is serving rural areas and
minority audiences; and whether or not it is a television or radio station.
1
2
http://www.cpb.org/aboutpb/faq/stations.html
http://www.cpb.org/stations/reports/revenue/2007PublicBroadcastingRevenue.pdf
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The Corporation for Public Broadcasting: Federal Funding and Issues
While federal funding for CPB primarily comes from the Departments of Labor-Health and
Human Services - Education appropriations bill as a separate entry under the “Related Agencies”
section of that bill, it may receive other sources of funding from the federal government. For
example, on October 15, 2010, CPB and PBS received notification of a Ready to Learn grant of
nearly $72 million from the Department of Education’s Office of Innovation and Improvement.
1
2
http://www.cpb.org/aboutpb/faq/stations.html
http://www.cpb.org/stations/reports/revenue/2007PublicBroadcastingRevenue.pdf
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The Corporation for Public Broadcasting: Federal Funding and Issues
CPB and PBS will use this money to fund research, development, and deployment of transmedia
content to improve the math and literarcy skills of children ages 2-8, especially those living in
poverty.3
Public Television: PBS
PBS was created by CPB in 1969 to operate and manage a nationwide (now satellite) program
distribution system interconnecting all the local public television stations, and to provide a
distribution channel for national programs to those public television stations. Although PBS does
not produce programs for its members, it aggregates funding for the creation and acquisition of
programs by and for the stations, and distributes programs through its satellite distribution
system. Paula Kerger became the sixth and current president and CEO of PBS in March 2006.
Public Radio: NPR and PRI
For radio, a different division of responsibilities was established. CPB created National Public
Radio (NPR) in 1970 as a news-gathering, production, and program-distribution company
governed by its member public radio stations. Unlike its public television counterpart, NPR is
authorized to produce radio programs for its members as well as to provide, acquire, and
distribute radio programming through its satellite program distribution system. The NPR
Foundation, located in Washington, DC, provides these administrative operations. Public Radio
International (PRI) was founded in 1983 as an independent, not-for-profit corporation to act as
another distributor of public radio content, in competition with National Public Radio and other
existing distributors. Vivian Schiller became the current president and CEO of NPR in January
2009.
On October 20, 2010, Juan Williams, a reporter for NPR, was fired by NPR President Vivian
Schiller for comments Mr. Williams made on the Fox News Channel. In an appearance on The
O’Reilly Factor show, Mr. Williams stated that he gets “nervous” when he sees someone in
“Muslim garb” on an airplane. Two days after his appearance, Mr. Williams was notified by
telephone that his contract with NPR was being terminated. In a memorandum to NPR staff on
October 24, 2010, Ms. Schiller stated that she failed to both properly inform Mr. Williams and
NPR staff of the move. However, Ms. Schiller also stated that Mr. Williams’ comment was just
the most recent in a series of objectionable remarks Mr. Williams has made while offering
commentary on Fox News.4 Almost immediately, there was a strong reaction from some among
the media and public about the process and fairness of this firing. This in turn has raised questions
about any federal funding that supports NPR policies and programs.
In response, some policymakers are revisiting the issue of whether federal appropriations should
continue to support any part of the public broadcasting system. They are addressing the overall
federal appropriations for CPB (discussed below), as well as any direct funding the NPR
3
Corporation for Public Broadcasting, “The Corporation for Public Broadcasting and PBS Receive Ready To Learn
Grant Funding from the U.S. Department of Education,” press release, October 15, 2010, http://www.cpb.org/
pressroom/release.php?prn=840.
4
Mark Memmott and David Folkenflik, NPR CEO Apologizes for Handling of Williams’ Termination, NPR,
Washington, DC, October 25, 2010, 5 pages, http://www.npr.org/blogs/thetwo-way/2010/10/25/130805049.
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Foundation receives from federal sources. In both FY2009 and FY2010, while CPB distributed
grant money to over 600 public radio stations, NPR also directly received $8 million designated
for “special projects” ($3.9 million in FY2009 and $4.1 million in FY2010).5 In addition, there
appears to be at least another source of federal funding for NPR. The NPR Foundation, which
oversees the NPR system, states that annually NPR receives direct funding in the range of $1.5
million to $3 million from three federal agencies and CPB, and that this funding accounts for less
than 2% of its annual budget. In FY2009 the NPR Foundation received $1.6 million and in
FY2010, $2.5 million. The sources of this funding are the National Endowment of the Arts, CPB,
the Department of Commerce’s National Telecommunications and Information Administration,
and the Department of Education. 6
Federal Funding
The Obama Administration requested a $460 million appropriation for CPB in its FY2011 budget
request (which would be implemented in FY2013). The vehicle that is used to provide
appropriations to the CPB is the Departments of Labor-Health and Human Services-Education
bill. For FY2011, S. 3686 has been reported out of the Senate Appropriations Committee (S.Rept.
111-243, July 29, 2010). In this bill, the Senate committee agreed with President Obama’s request
for $460 million for FY2013. No further action in either the House or Senate has been taken on
this bill to date. On September 30, 2010, Congress passed a Continuing Appropriations bill to
extend federal funding for all programs through December 3, 2010
Federal Funding
The Obama Administration requested a $440 million appropriation for CPB for FY2010. The
House agreed to this figure, while the Senate Committee on Appropriations raised the amount to
$450 million. Both the House bill and the Senate committee reported bill include provisions to
assist public broadcasters affected by the recent economic downturn and to provide assistance for
digital conversion.
Since CPB has a two-year advanced appropriation, both the FY2010 and FY2011FY2011 and FY2012 appropriations
for CPB have already been approved (in FY2008 and FY2009FY2009 and FY2010, respectively). For FY2010FY2011, the
CPB will receive $420430 million, and for FY2011FY2012 it will receive $430 million.
Over the last several years445 million.
From 2001-2008, the Bush Administration had requested that the advanced
appropriations for
CPB end. Congress did not support this request. The Bush Administration did
request that also requested that
some funding from CPB’s enacted appropriations be made available for digital
conversion grants
to public television broadcasters, to which Congress agreed. Also, the Bush
Administration asked that CPB funding be made available to upgrade and complete the national
interconnection system, which is the national distribution network of public broadcasting stations.
This was also supported in previous appropriations bills.
From the last year of available information, public broadcasting reported total income of $2.9
million in FY2007.3 The federal contribution made up 13.7% of the system’s total income. The
remaining 86.3% Since 2009, the Obama
Administration has proposed and supported increased funding for CPB through the two-year
advanced appropriations.
From the last year of available information, the U.S. public broadcasting system – comprised of
the national public radio and television stations—reported total income of $2.85 billion in
FY2008.7 According to the CPB, for public broadcasting revenue by source, CPB funds made up
13.8% of the total; another 2.6% came from federal grants and contracts. The remaining 83.6%
was raised from non-federal sources (including individuals, businesses,
3
http://www.cpb.org/stations/reports/revenue/2007PublicBroadcastingRevenue.pdf
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foundations, state and local governments, and educational institutions). The largest single income
source (24.4% in FY2007) came from membership. Neither PBS nor NPR receives grants from
the CPB for their general operations; only local public broadcasting stations receive these
generally unrestricted funds directly.
A history of CPB appropriations from FY2001 is presented in Table 1.
Table 1. CPB Federal Appropriations FY2001- FY2011
($ in millions)
Fiscal
Year
Administration Request
House Appropriation
Senate Appropriation
Final
Appropriation
2001
$340
$340
$340
$340
2002
$350
$340
$350
$350
2003
$365
$365
$365
$362.8
2004
$0a
$365
$395
$377.8
2005
$0a
$380
$395
$386.8b
2006
$0a
$400
$400
$396c
2007
$0a e
$400
$400
$400
2008
$0a e
$400
$400
$393d
2009
ae
None
$400
$400
2010
ae
$420
$420
$420
2011
a
$430
$430
$430
Source: Compiled by the Congressional Research Service from information from the Corporation for Public
Broadcasting, The Budget of the U.S. Government, and Public Laws.
a.
The Bush Administration requested that the two-year advanced appropriations funding for CPB end, and
therefore did not request advanced appropriations after 2004.
b.
FY2005 final appropriation ($390 million) includes a 0.80% rescission for all federal appropriations (P.L. 108447).
c.
FY2006 final appropriation ($400 million) includes a 1% rescission for all federal appropriations (P.L. 109-148).
d.
FY2008 final appropriation ($400 million) includes a 1.747% rescission for all federal appropriations (P.L. 110161).
e.
The President’s FY2007 budget recommended a $53.5 million rescission from CPB’s FY2007 advance
appropriation, a $50 million rescission from CPB’s 2008 advance appropriation, a $200 million rescission from
CPB’s 2009 advance appropriation, and a $220 million rescission from CPB’s 2010 advance appropriation.
Issues
In an age of multiple cable channel options, digital radio, and computerized digital streaming,
many foundations, state and
local governments, and educational institutions). The largest single income source (24.6% in
FY2008) came from membership.
5
Also described by NPR as “occasional projects.” It appears that these are content and broadcasting projects that will
be made for distribution to public radio stations. Telephone Conversation, Office of Congressional Affairs, Corporation
for Public Broadcasting, October 21, 2010.
6
Personal Communication, Anna Christopher, Communications Office, NPR, October 26, 2010.
7
http://www.cpb.org/stations/reports/revenue/2008PublicBroadcastingRevenue.pdf
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The Corporation for Public Broadcasting: Federal Funding and Issues
Of the majority of federal appropriations which go through CPB to the individual public radio
and television stations; only local public broadcasting stations receive these generally unrestricted
federal funds directly. For NPR-affiliated stations, the amount of grants awarded by CPB totaled
$62.3 million in FY2009 and $65 million in FY2010. However, member stations also pay NPR
fees for content and programming; some contend that federal grant money is supporting part of
the revenue streams back to NPR Foundation.
For some, the Juan Williams firing highlighted the issue of funding that the NPR receives from
federal sources. As stated above, public radio stations which make up the NPR network can apply
for CPB grants, and the amount of these grants totaled $62.3 million in FY2009 and $65 million
in FY2010. Within these two amounts, $8 million was provided directly to the NPR Foundation
for “special projects” ($3.9 million in FY2009 and $4.1 million in FY2010). In addition, between
$1.5 million and $3 million has been provided directly to the NPR Foundation on an annual basis
($1.6 million in FY2009 and $2.5 million in FY2010). Some contend that because public radio
stations also pay licensing fees to NPR for content and programming, and that many public radio
stations are receiving CPB grants, that this may also be an indirect federal revenue stream to
NPR.
A history of CPB appropriations is presented in Table 1. Additional information on both NPR and
PBS funding may be obtained at their respective websites ( http://www.npr.org and
http://ww.pbs.org, respectively).
Table 1. CPB Federal Appropriations
($ in millions)
Fiscal Year
Administration
Request
House
Appropriation
Senate
Appropriation
Final
Appropriation
1969
$9
a
$6
$5
1970
$15
a
$15
$15
1971
$22
a
$27
$23
1972
$35
$35
$35
$35
1973
$45
$45
$45
$35
1974
$45
a
$55
$50
1975
$60
$60
$65
$62
1976
$70
$78.5
$78.5
$78.5
TQb
$17
$17.5
$17.5
$17.5
1977
$70
$96.7
1978
$80
1979
$90
1980
$103
$103
$107.1
$121.1
$119.2
$120.2
$140
$120.2
$120
$145
$172
$152
1981
$162
$162
$162
$162
1982
$172
$172
$172
$172
1983
$172
$172
$172
$137
1984
$110
$110
$130
$137.5
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Fiscal Year
Administration
Request
House
Appropriation
Senate
Appropriation
Final
Appropriation
1985
$85
$130
$130
$150.5
1986
$75
$130
$130
$159.5
1987
$186
a
$238
$200
1988
$214
a
$214
$214
1989
$214
$214
$238
$228
1990
$214
$238
$248
$229.4c
1991
$214
a
$302.5d
$298.9d
1992
$242.1
$314.1d
$340.5d
$327.3d
1993
$306.5d
$306.5d
$341.9
$318.6d
1994
$260
$253.3
$284
$275
1995
$275
$271.6
$310
$285.6
1996
$292.6
$292.6
1997
$320
$275
$292.6
a
$330
$260
1998
$296.4
$240
$260
$250
1999
$275
$250
$250
$250
2000
$325
$300
$300
$300
2001
$340
$340
$340
$340
2002
$350
$340
$350
$350
2003
$365
$365
$365
$362.8
2004
e
$365
$395
$377.8
2005
e
$380
$395
$386.8f
2006
e, g
$335
$400
$396h
2007
e, g
$400
$400
$400
2008
e, g
$400
$400
$393i
2009
e, g
None
$400
$400
2010
e, g
$420
$420
$420
2011
e
$430
$430
$430
2012
$440
$440
$450
$445
2013
$460
—
—
—
Source: Compiled by the Congressional Research Service from information from the Corporation for Public
Broadcasting. (http://www.cpb.org).
a.
Allowance not included in House Bill because of lack of authorizing legislation.
b.
Transition Quarter funding, during which federal budget year changed from July to September.
c.
Reduced FY1990 by Sequestration.
d.
Includes funds appropriated for the Satellite Replacement Fund.
e.
From FY2002-FY2011, the Bush Administration declined to request two-year advance funding for CPB.
Similarly, the President’s budget request did not provide separate funding for digital or, where applicable,
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The Corporation for Public Broadcasting: Federal Funding and Issues
interconnection replacement, but would have permitted CPB to use a portion of its general appropriation
to fund both.
f.
FY2005 funding ($390 million) reduced by 0.80% across-the-board rescission in P.L. 108-447.
g.
From FY2006-FY2010, the Bush Administration proposed rescissions to CPB’s already-enacted two-year
advanced funding. The proposed rescissions: $10 million from FY2006; $53.5 million from FY2007; $50
million from FY2008; $200 million from FY2009 and $220 million from FY2010.
h.
FY2006 funding ($400 million) reduced by 1% across-the-board rescission in P.L. 109-148.
i.
FY2008 funding ($400 million) reduced by 1.747% across-the-board rescission in P.L. 110-161.
Issues
In an age of multiple cable channel options, digital radio, and computerized digital streaming,
some ask whether there is a need for a federally supported national broadcasting system.
Supporters of public broadcasting argue that public radio and television broadcasters, free of
commercial interruption, provide perhaps the last bastion of balanced and objective information,
news, children’s education, and entertainment in an era of a changing media landscape. Others
contend that public broadcasting has lost much of its early impact since the media choices have
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grown so much over the last several decades and that the federal role in public broadcasting
should be re-evaluated as well.
For example, many public radio stations now stream their shows over the Internet, either live or
on delay. Federal communications law states artists receive royalties for these Internet-streamed,
or “webcast,” programs from broadcasters,4 but to date artists do not receive royalties for
performances played on AM and FM radio. Many public radio stations that also webcast—
particularly those at colleges and universities—contend that they could not afford to make the
digital royalty payments as commercial broadcasters, as required.
To avoid continued questions regarding webcasting of public broadcasting, or even the cessation
of this part of public broadcasting, CPB and SoundExchange5 came to an agreement in August
2009 that will cover royalties from 2012 through 2015 for NPR member stations, NPR itself,
National Federation of Community broadcasters member stations, Public Radio International,
American Public Media, Public Radio Exchange and certain CPB-qualified stations. The CPB
will pay the royalties out of a system support fund, which is set at 6% of its federal
appropriations.6
The agreement will provide public broadcasters an avenue to continue a wide range of
broadcasting. However, some public broadcast supporters are concerned that this has opened up a
precedent for royalty payments by public broadcast stations, which state they already have
significant financial obligations; other industry observers contend that public broadcasters must
address the same issues that commercial digital broadcasters are facing in the 21st century.
Another issue is multiple ownership of public media outlets in competitive markets. The issue
now before the Federal Communications Commission (FCC) involves the attempt of the WGBH
Education Foundation—operator of WGBH-TV, the highly successful Boston-based public
service broadcaster—to purchase the commercial radio station WCRB-FM.
The WGBH Education Foundation is the top-ranked member of the Public Broadcasting Service
in New England and produces about one-third of PBS’s programming. It operates a second
Boston television station, and one in Springfield, MA. In addition it operates four FM radio
stations in eastern Massachusetts, and is a member of National Public Radio and Public Radio
International. It operates two commercial subsidiaries involved in music rights and motion picture
production. The purchase of WCRB-FM, a classical music station that serves the Boston area,
would allow WGBH to potentially alter its format to compete more directly with WBUR-FM, the
leading public radio station in Boston that is operated by Boston University. 7
4
See CRS Report RL34411, Expanding the Scope of the Public Performance Right for Sound Recordings: A Legal
Analysis of the Performance Rights Act (H.R. 848 and S. 379), by Brian T. Yeh. Historically, artists do not receive
royalty payments for performances on AM and FM radio; the publishers of songs and performances receive a royalty
rate.
5
SoundExchange is a non-profit performance rights organization that collects royalties on behalf of sound recording
owners (e.g., record companies) and recording artists for non-interactive digital transmissions including satellite and
digital radio broadcasters.
6
SoundExchange, CPB Reach Agreement Through 2015, Public Broadcasting Report, Aug. 14, 2009. p.2.
7
Information on WBGH is available at http://www.wgbh.org/.
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Some contend that if WGBH were a commercial broadcaster, it would have far too much control
of a local broadcast area and that the concentration would harm competition. In deciding whether
to permit the purchase, the FCC faces consideration of whether the expansion of the public
broadcaster harms competitors and plurality and diversity. It may also impact other public
broadcasters in highly concentrated media outlets, where some commercial broadcasters face
declining revenue streams and thin profit margins. The FCC decision is expected by the end of
the calendar year.
Finally, Congress has recognized that, in a sharp economic downturn such as that experienced in
the United States since 2007, public broadcasters may not be receiving the amount of private
membership and foundation support they have received in the past. In the version of H.R. 3293 as
passed by the House, $40 million of the CPB appropriations for FY2010 is directed for “fiscal
stabilization grants to public radio and television stations, which have negatively been impacted
by the economic downturn.” In the version of H.R. 3293 reported out of the Senate
Appropriations Committee, similar language provides $10 million for these types of grants.
Author Contact Information
Mark Gurevitz
Information Research Specialist
mgurevitz@crs.loc.gov, 7-7204
Congressional Research Service
Glenn J. McLoughlin
Section Research Manager
gmcloughlin@crs.loc.gov, 7-7073
5
grown so much over the last several decades and that the federal role in public broadcasting
should be re-evaluated as well.
Supporters of public broadcasting contend that public radio and public television provide
education and news to many underserved parts of the American population. Public broadcasters
may provide this service to an underserved and less commercially attractive population that
commercial broadcasters do not address. For example, PBS broadcasting for children includes
lessons in reading, counting, and spelling as part of its content, subjects not normally found on
commercial broadcasts.
Among the more significant issues facing policymakers may be whether federal funding for
public broadcasting should be continued at its current level; whether the funding should be
modified or reduced; whether the arrangement between the federal funding process and public
broadcasting should be changed; or whether federal funding for public broadcasting should be
eliminated. While most federal appropriations go through CPB to support member stations of
NPR, PRI, PBS, and a small number of independent affiliates, the handling of the Juan Williams
firing from NPR has raised concerns of the federal role in public broadcasting. Since according to
NPR, federal funding to supplement administrative functions amounts to less than 2% of its
annual budget, some may question whether such a small amount is worthy of congressional
action to eliminate. But others contend that the relatively small amount of money that is allocated
to NPR functions is proof that NPR can provide operational support without any federal role.
Independent of the recent controversy regarding NPR, over the last several years some in
Congress have questioned whether the federal appropriations for CPB should be reduced or
eliminated as well. Underlying this position are concerns that the federal role, once so clear in
1967, has been eclipsed in a multi-media Internet age; concerns that the size and scope of the
federal government budget deficit requires significant cutbacks in many areas; and allegations
that public broadcasting is not objective, balanced or free of an ideological slant.
As indicated in Table 1, CPB has consistently received increasing federal appropriations since
1969. Some would contend that this demonstrates a general consensus among congressional
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The Corporation for Public Broadcasting: Federal Funding and Issues
policymakers that there is a federal role in public broadcasting. In addition, public support of
public radio and television broadcasting generally has been consistent as well. Whether the firing
of Mr. Williams from NPR will substantively or permanently change this support is unclear.
The issue of federal support for public broadcasting may be addressed during the “lame duck”
session of the 111th Congress, as well as into the 112th Congress.
Author Contact Information
Glenn J. McLoughlin
Section Research Manager
gmcloughlin@crs.loc.gov, 7-7073
Congressional Research Service
Mark Gurevitz
Information Research Specialist
mgurevitz@crs.loc.gov, 7-7204
7