The Corporation for Public Broadcasting:
Federal Funding and Issues
Glenn J. McLoughlin
Section Research Manager
Mark Gurevitz
Information Research Specialist
February 5, 2013
Congressional Research Service
7-5700
www.crs.gov
RS22168
CRS Report for Congress
Pr
epared for Members and Committees of Congress
The Corporation for Public Broadcasting: Federal Funding and Issues
Summary
The Corporation for Public Broadcasting (CPB) receives virtually all of its funding through
federal appropriations; overall, about 15% of all public television and radio broadcasting funding
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 two-year advanced appropriations. Congressional policymakers are increasingly
interested in the federal role in supporting CPB due to concerns over the federal debt, the role of
the federal government funding for public radio and television, and whether public broadcasting
provides a balanced and nuanced approach to covering news of national interest.
It is also important to note that many congressional policymakers defend the federal role of
funding public broadcasting. They contend that it provides news and information to large
segments of the population that seek to understand complex policy issues in depth, and in
particular for children’s television broadcasting, has a significant and positive impact on early
learning and education for children.
On June 20, 2012, the Corporation for Public Broadcasting released a report, Alternative Sources
of Funding for Public Broadcasting Stations. The report was undertaken in response to the
conference report accompanying the Military Construction and Veterans Affairs and Related
Appropriations Act of 2012 (incorporated into the Consolidated Appropriations Act, FY2012,
H.R. 2055, P.L. 112-74). The CPB engaged the consulting firm of Booz & Company to explore
possible alternatives to the federal appropriation to CPB. Among its findings, the report stated
that ending federal funding for public broadcasting would severely diminish, if not destroy, public
broadcasting service in the United States.
On September 28, 2012, President Obama signed a Continuing Resolution (CR) of federal
funding for FY2013 into law (H.J.Res. 117, P.L. 112-175). It maintains CPB’s advanced
appropriations for FY2013 at $445 million from October 1, 2012, through March 27, 2013.
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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 ............................................................................................................................... 3
Issues................................................................................................................................................ 7
Tables
Table 1. CPB Federal Appropriations .............................................................................................. 4
Contacts
Author Contact Information............................................................................................................. 9
Congressional Research Service
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
National Public Radio (NPR), created in 1970 by CPB, and Public Radio International (PRI).
The number of radio and television public broadcasting stations supported by CPB increased
from 270 in 1969 to 1,300 in 2012,1 of which 368 are television stations. Public broadcasting
stations are 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 Patty Cahill, elected by the board of
directors in September 2012. 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 nonfederal 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 nonfederal 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.
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 http://www.cpb.org/aboutpb/faq/stations.html.
2 http://www.cpb.org/stations/reports/revenue/2007PublicBroadcastingRevenue.pdf.
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CPB and PBS will use this money to fund research, development, and deployment of transmedia
content to improve the math and literacy 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. NPR Inc., 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.
Gary Knell is currently the president and CEO of NPR.
On October 20, 2010, Juan Williams, a news analyst working as an independent contractor
reporter for NPR, was fired by executives in the office of NPR News for comments Mr. Williams
made on the Fox News Channel, as well as apparently for previous incidents that violated the
terms of Mr. Williams’s contract.4 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, Vivian Schiller, then
president and chief executive at NPR, stated that she “regrets that NPR executives did not meet
with (Mr.) Williams in person to discuss the situation.” In addition, Ms. Schiller also stated that
Mr. Williams’s comment was just the most recent in a series of objectionable remarks Mr.
Williams has made while offering commentary on Fox News. This decision was supported by the
leadership of NPR news.5 However, almost immediately there was a strong reaction from some
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 Mike Riksen, Vice President, Policy & Representation, letter to the Congressional Research Service, December 6,
2010. p. 1.
5 Ibid., and as cited at http://www.npr.org/blogs/thetwo-way/2010/10/25/130805049/npr-ceo-apologizes-for-handling-
of-williams-termination. Information on NPR’s code of ethics may be viewed at http://www.npt.org/about/aboutnpr/
ethics/. Last viewed December 23, 2010.
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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.
On January 6, 2011, NPR Inc. announced that its board of directors had accepted several
recommendations to provide greater clarity and transparency for its code of ethics regarding NPR
employees. These include reviewing and updating of policies and training with respect to the role
of NPR journalists appearing on other media outlets, reviewing and defining their roles (including
those of news analysts) in a changing news environment, and encouraging a broad range of
viewpoints to reflect the diversity of NPR’s national audiences. At the same time these
recommendations were announced, Ellen Weiss, vice president of news for NPR, resigned; it was
also announced that Ms. Schiller would not receive a bonus for 2010. On March 9, 2011, Vivian
Schiller resigned as president and CEO of NPR, over continued scrutiny and criticism over NPR’s
handling of an incident regarding Ronald Schiller (no relation) in a taped interview.
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
Foundation receives from federal sources. H.R. 68 and H.R. 69 (Representative Lamborn, and
discussed more fully later in this report) were introduced on January 5, 2010. These bills would
eliminate federal appropriations for NPR and CPB, respectively, in FY2013.
In both FY2010 and FY2011, CPB distributed its community service grant (CSG) money to over
900 public radio stations. NPR directly received $3 million in discretionary grants designated for
“special projects” ($2.96 million in FY2010 and $0 in FY2011).6 In addition, there appears to be
at least another source of federal funding for NPR. NPR Inc., which oversees the NPR system,
states that annually NPR receives direct funding in the range of $1.5 million to $3 million from
two federal agencies and CPB, and that this funding accounts for less than 2% of its annual
budget. In FY2009 NPR Inc. received $1.6 million and in FY2010, $2.5 million. The sources of
this funding are the National Endowment of the Arts, CPB, and the Department of Education.7
Federal Funding
The Obama Administration requested a $445 million appropriation for CPB in its FY2013 budget
request (which would be dispersed in FY2015). The vehicle that is used to provide appropriations
to the CPB is the Departments of Labor-Health and Human Services-Education bill. After several
Continuing Resolutions for the FY2012 federal budget, the final CR was signed into law by
President Obama on December 23, 2011 (P.L. 112-74). While the final bill sustained the CPB
advanced appropriations approved in the FY2010 budget, it was included in an across-the-board
federal recission of 0.189%. The final appropriated funding for CPB stands at $444.1 million for
FY2012.
6 Also described by NPR as “occasional projects.” It is important to note that the original numbers provided to CRS
were $3.9 million in FY2009 and $4.1 million in FY2010, for a total of $8 million. Telephone Conversation, Office of
Congressional Affairs, Corporation for Public Broadcasting, October 21, 2010. The purpose of these grants were to
develop HD radio technology for those who are “print- and hearing-impaired”; to distribute next generation public
broadcasting technology to individual stations; to support collaborations between public radio and public broadcasting
stations for content related to news events of 2008 and 2009; and for other projects. Mike Riksen, Vice President,
Policy & Representation, letter to the Congressional Research Service, December 6, 2010. p. 2.
7 Personal Communication, Anna Christopher, Communications Office, NPR, October 26, 2010.
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The Corporation for Public Broadcasting: Federal Funding and Issues
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 $2.8 billion in
FY2011.8 According to the CPB, for public broadcasting revenue by source, CPB funds made up
15.1% of the total; another 2.9% came from federal grants and contracts. The remaining 82% was
raised from nonfederal sources (including individuals, businesses, foundations, state and local
governments, and educational institutions). The largest single income source (26.6% in FY2011)
came from membership.
Federal appropriations which go through CPB to the individual public radio and television
stations generally are designated as unrestricted federal funds. For those public radio stations
which applied for grants, the amount of grants awarded by CPB totaled $68.6 million in FY2012.
However, member stations also pay NPR fees for content and programming; some contend that
federal grant money is supporting part of the revenue streams back to NPR Inc.
A history of CPB appropriations is presented in Table 1. Additional information on both NPR and
PBS funding may be obtained at their respective websites (http://www.npr.org and
http://www.pbs.org, respectively).
Table 1. CPB Federal Appropriations
($ in millions)
Administration
House
Senate
Final
Fiscal Year
Request
Appropriation
Appropriation
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
96.7 103
103
1978 80
107.1 121.1 119.2
1979 90
120.2 140
120.2
1980 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
1985 85
130 130
150.5
8 http://www.cpb.org/stations/reports/revenue/2011PublicBroadcastingRevenue.pdf.
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Administration
House
Senate
Final
Fiscal Year
Request
Appropriation
Appropriation
Appropriation
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
292.6 320
275
1997 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 430 430 429.1
2012 440
440
450
444.1
2013 460
460
460
445l
2014 451j None 445 445m
2015 445k
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.
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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,
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.
j.
Fiscal Year 2012 Appendix Budget of the U.S. Government.
k. Fiscal Year 2013 Appendix Budget of the U.S. Government.
l.
P.L. 112-10 Senate Committee on Appropriations FY 2011 CR: Labor, HHS, Education Summary.
m. P.L. 112-74 Consolidated Appropriations Act, (H.R. 2055).
There was significant legislative interest and activity regarding federal funding for CPB from the
end of the 111th Congress into the 112th Congress. During the 111th Congress, Representative
Lamborn (CO) introduced H.R. 5538, a bill that would eliminate federal funding for CPB after
FY2012.9 This bill was referred to the House Committee on Energy and Commerce. During the
“lame duck” period of the 111th Congress in November 2010, Representative Lamborn sought to
have his bill considered for floor action in the House, but this action was defeated by a vote of
239-171. In response, Representative Earl Blumenauer (OR) defended public broadcasting by
stating that “National Public Radio is one of the few areas where the American public can
actually get balanced information.”10
On January 5, 2011, Representative Lamborn introduced H.R. 68 (To amend the Communications
Act of 1934 to prohibit Federal funding for the Corporation of Public Broadcasting after FY2013)
and H.R. 69 (To prohibit Federal funding of certain public radio programming, to provide for the
transfer of certain public debt, and for other purposes). The first bill, like its predecessor H.R.
5538, would eliminate federal appropriations for CPB when its two-year advanced funding ends.
The second bill would prohibit federal funding to organizations incorporated for specified
purposes related to (1) broadcasting, transmitting, and programming over noncommercial
educational radio broadcast stations, networks, and systems; (2) cooperating with foreign
broadcasting systems and networks in international radio programming and broadcasting; (3)
assisting and supporting such noncommercial educational radio broadcasting pursuant to the
Public Broadcasting Act of 1967; or (4) acquiring radio programs from such organizations. In
effect, it would prohibit any individual public radio station from using federal funding to engage
in transactions with NPR Inc. Both bills have been referred to the House Committee on Energy
and Commerce.
9 Full title: “To amend the Communications Act of 1934 to prohibit Federal funding for the Corporation for Public
Broadcasting after fiscal year 2012.”
10 Frances Symes, CQ Today Online News, “House Rejects GOP Bid to Reduce Federal Funding for NPR and Local
Stations.” http://www.cq.com/doc/news.
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On January 11, NPR Inc. responded to the two bills by stating, in part: “The proposal to prohibit
public radio stations from using CPB grants to purchase NPR programming interjects federal
authority into local station program decision-making. Furthermore, restrictions on the authority of
CPB—a Congressionally chartered, independent, nonprofit organization—to make competitive
grants to NPR, or any other public broadcasting entity, is misguided.”11
Other legislation has been introduced addressing federal support for public broadcasting. On
January 7, 2011, Representative Kevin Brady introduced H.R. 235 (Cut Unsustainable and Top-
Heavy Spending Act of 2011 or the CUTS ACT), which provides that all unobligated balances
held by the CPB that consists of federal funds are rescinded and no federal funds appropriated
hereafter shall be obligated or expended.
On January 24, 2011, Representative Jim Jordan introduced H.R. 408 (Spending Reduction Act of
2011), which would reduce federal spending by $2.5 trillion through FY2021 in part by
eliminating the CPB.
On March 15, 2011, Representative Lamborn introduced H.R. 1076, a bill to prohibit the funding
of National Public Radio and restrict the use of federal funds for member stations to acquire NPR
broadcasting content. The House Rules Committee passed H.Res. 174, which permitted H.R.
1076 to go directly to the floor and, without any points of order or amendments, be open to one
hour of debate before a full vote in the House of Representatives. H.R. 1076 passed the House
228-192, and was referred to the Senate. No further action was taken on this bill.
Other proposals in the 112th Congress addressed federal funding for public broadcasting. On
January 20, 2011, the Republican Study Group, a conservative caucus comprised of 100 Members
of Congress, released its list of proposed budget cuts, including elimination of CPB’s
appropriations starting in FY2012. At the same time, Representative Ryan (WI), the chairman of
the House Committee on the Budget for the 112th Congress, has proposed a new continuing
resolution that would set the rest of the FY2011 budget at FY2008 levels (excluding defense,
homeland security, and veterans programs).
Issues
In an age of multiple cable channel options, digital radio, and computerized digital streaming,
some ask whether there is a need for federal appropriations to support public broadcasting. The
array of commercial all-news radio and radio talk shows, many of which are also streamed on the
Internet, provides sources of news and opinion. 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. Still, others contend that public broadcasting has lost much
of its early impact since the media choices have 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
11 NPR Statement Regarding Proposed Legislation, H.R. 68/69, NPR., Inc., Washington, DC, January 11, 2011.
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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. According to NPR Inc., approximately 90% of public radio stations
provide local newscasts, airing both newscast and non-newscast content (primarily in weekday
drive times and especially during morning drive-time). Again citing NPR, about half of all public
radio stations carry local news during the weekends, and 74% of stations are producing and
inserting stories into their programming.
On June 20, 2012, the CPB released a report, Alternative Sources of Funding for Public
Broadcasting Stations. The report was undertaken in response to language in the Military
Construction and Veterans Affairs and Related Agencies Appropriations Act of 2012 directing the
CPB to provide a report to congressional appropriations committees on alternative sources of
federal funding for public broadcasting stations. (H.R. 2055, P.L. 112-74). The report, undertaken
by the consulting firm of Booz & Company, provides several alternative or new funding options
for public broadcasting stations, with possible benefits as well as liabilities for each option. Five
options considered by Booz & Company are television advertising, radio advertising,
retransmission consent fees, paid digital subscriptions, and digital game publishing. In addition,
fourteen current sources of revenue streams already employed by public broadcasting, ranging
from merchandise licensing to mobile device applications, were also analyzed as options to
replace federal funding for public broadcasting. Booz & Company found “there is simply no
substitute for the federal investment” in public broadcasting and that “Ending federal funding for
public broadcasting would severely diminish, if not destroy, public broadcasting service in the
United States.”12 The report concludes that if the existing public broadcasting structure were
commercialized, the new revenue streams would not offset the loss of federal funding; and that
many public broadcasters would have to deviate from their statutory service mission or compete
for advertising with established commercial broadcasters in a difficult economic environment.
Still, some critics contend that the report substantiates criticisms of the public broadcasting
model: required to compete with commercial television and radio broadcasters that also provide
news and entertainment, many public broadcasters could not adapt to a changing media world
that provides multiple sources of information and entertainment. For these critics, if many public
broadcasters struggle to operate with budget deficits even with federal funding available, what
does that say about the need and viability of these stations in a multi-media world, or the ability
of their audiences to sustain this business model going forward?
Several important issues are facing congressional policymakers as they address federal
appropriations for all forms of public broadcasting. On the most fundamental level, many
question the 1967 law that created the national public broadcasting system and whether the
federal government should be in the “business” of providing general appropriations to CPB every
year since 1969. They ask: is this still a relevant and appropriate role of the federal government?
On a second level, some may contend that in an era of spiraling federal deficits, in which many (if
not all) federal expenditures are being re-examined, appropriations for CPB should be reduced if
not eliminated. These questions revolve around 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.
12 Corporation for Public Broadcasting, Alternative Sources of Funding for Public Broadcasting Stations, June 20,
2012, pp. 2, 3.
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Public broadcasting retains its strong supporters. Most federal appropriations go through CPB to
directly support member stations of NPR, PRI, PBS, and other independent affiliates. 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. 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
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. Supporters of a
public broadcasting network system contend that local programming content is not determined by
NPR Inc., or PBS, and that most content is local serving community needs. Balanced against
concerns about the role of the federal government in public broadcasting, as well as strong
pressure to reduced federal spending, these issues will continue to be of interest to federal
policymakers.
Author Contact Information
Glenn J. McLoughlin
Mark Gurevitz
Section Research Manager
Information Research Specialist
gmcloughlin@crs.loc.gov, 7-7073
mgurevitz@crs.loc.gov, 7-7204
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