September 2026 Newsletter

Momentum continues to build in the fight against media censorship, with states increasingly taking action to prevent taxpayer dollars from supporting politically biased media blacklists. South Carolina has become the latest state to enact protections against censorship-by-proxy, joining Florida and West Virginia in pushing back against practices that unfairly disadvantage conservative and independent media.

We expect that momentum to continue in the fall when Congress is back in session. Lawmakers are increasingly recognizing the challenges posed by media blacklists, advertiser coordination and other forms of censorship, creating new opportunities to advance protections for free speech and a free press.

Also in this edition, we look at the FTC’s growing scrutiny of ideological bias in AI, the FCC’s decision to eliminate the 39 percent broadcast ownership cap and the legal questions surrounding that move, and the settlement between X and the World Federation of Advertisers in the GARM lawsuit.

IMC will continue working with policymakers and industry leaders at both the state and federal levels to protect a free and competitive media marketplace. Visit us at IMCAmerica.com to learn about membership and more.

South Carolina has become the latest state to take a stand against media censorship and politically biased media blacklists.

Gov. Henry McMaster signed the state’s 2026–27 budget into law last month, including a provision that prohibits taxpayer-funded advertising from being filtered through media-monitoring systems. As a result, state agencies cannot contract with firms that use media monitors such as NewsGuard, Ad Fontes Media and the Global Disinformation Index (GDI) when placing state-funded advertising.

“South Carolina lawmakers deserve credit for recognizing the growing threat media blacklists pose to free speech and a free press,” said IMC spokesperson Christine Czernejewski. “Taxpayer-funded advertising should not be filtered through ideological gatekeepers masquerading as neutral watchdogs. South Carolina’s action sends a clear message that government should not subsidize private censorship schemes. We applaud Gov. McMaster for signing this provision into law.”

South Carolina joins a growing national movement against media blacklists and censorship-by-proxy. Florida renewed similar protections through its state budget for a second consecutive year, while West Virginia enacted comparable safeguards through its First Amendment Preservation Act earlier this year.

Congress has also adopted related language in the National Defense Authorization Act restricting the Pentagon from using advertising agencies that employ misinformation-monitoring systems when placing military recruitment ads. And the Federal Trade Commission has been addressing concerns that coordinated “brand safety” and exclusion-list practices may be used to discriminate against media outlets based on their political or ideological content.

The IMC will continue working to ensure taxpayer resources are not used to support censorship of independent and conservative media and to protect free speech and a free press.

See IMC’s press release here.

The Federal Trade Commission recently sought public comment on a proposed policy statement addressing whether AI companies could violate federal consumer-protection law by altering AI outputs to advance undisclosed ideological or other objectives.

The proposal argues that consumers may be misled when AI systems are marketed as producing truthful or accurate results but are intentionally steered toward other undisclosed objectives. It also states that AI companies could face potential liability under Section 5 of the FTC Act if their representations or omissions about how their systems operate materially mislead consumers.

The proposed statement also addresses state AI laws. The FTC contends that state requirements that compel companies to alter otherwise accurate AI outputs could conflict with companies’ obligations under federal consumer-protection law. This remains the FTC’s proposed position rather than a binding rule or final enforcement policy.

President Trump’s December 11, 2025, executive order directed the FTC to issue a policy statement addressing the application of the FTC Act to AI and how state laws requiring alterations to accurate AI outputs may conflict with federal policy.

The proposal was published in the Federal Register on July 7, and the public-comment period closed July 31. As of September 8, the FTC has not announced a final policy statement or additional formal action on the proposal.

The Federal Communications Commission has voted to repeal the longstanding national television ownership cap and replace it with case-by-case review of proposed transactions, setting up a likely legal battle over media consolidation and the FCC’s authority.

In a 2–1 vote on August 6, the FCC eliminated the rule generally preventing a single broadcaster from owning television stations reaching more than 39 percent of U.S. television households. Under the new system, the FCC may approve transactions exceeding that threshold if it determines they serve the public interest.

Former House Majority Leader Tom DeLay, who helped negotiate the 39 percent threshold more than two decades ago, argues that the FCC lacks the authority to eliminate it.

In a recent Daily Wire piece, I Helped Create the FCC’s Ownership Cap. Here’s How We Did It, DeLay explained that the threshold resulted from a compromise negotiated by Congress in 2003 and signed into law by President George W. Bush in 2004.

DeLay, a longtime advocate for deregulation, said the question is not whether the cap should change, but who has the authority to change it.

“If Chairman Carr wants to raise the statutory cap, he should ask Congress to pass a law giving him authority to do that,” DeLay wrote.

The public-interest organization Free Press has announced that it and its allies intend to challenge the FCC’s decision. As of September 8, no court challenge appears to have been publicly filed.

The anticipated litigation could determine whether the FCC had authority to replace the congressionally established threshold without further legislative action. The outcome carries significant implications for broadcast ownership, competition, local journalism and consolidation in the American media industry.

Elon Musk’s X and the World Federation of Advertisers (WFA) have settled their long-running legal dispute, bringing an end to one of the most closely watched legal battles over advertiser coordination and online speech.

X filed suit in 2024, alleging that the WFA and several major advertisers coordinated an unlawful boycott that deprived the platform of billions of dollars in advertising revenue after Elon Musk acquired Twitter. Although a federal judge dismissed X’s antitrust claims earlier this year, X appealed the decision before ultimately reaching a settlement with the WFA. Individual claims against several advertisers remain separate.

As part of the agreement, the WFA reaffirmed its commitment to freedom of speech, confirmed that the Global Alliance for Responsible Media (GARM) —which was dissolved shortly after X filed suit in 2024—will not be revived, and stated that both organizations support continued innovation in brand safety practices.

While the litigation has ended, the broader questions surrounding advertiser influence, platform moderation policies, and viewpoint diversity remain unresolved and are likely to continue shaping debates over digital speech and competition.

The Daily Signal by Rob Bluey, 8/19/26

https://www.dailysignal.com/2026/08/19/south-carolina-media-blacklists/

South Carolina Becomes Latest State to Push Back on Media Censorship

JBizNews, 8/18/26

https://jbiznews.com/south-carolina-becomes-latest-state-to-push-back-on-media-censorship/

SC Bans Funds for Ad Agencies Using NewsGuard, Censorship Programs

Newsmax Wires, 8/18/26

https://www.newsmax.com/newsfront/south-carolina-newsguard-censorship/2026/08/17/id/1266399/

Free Press Plans to Take Carr to Court in Response to Thursday’s Unlawful Decision to Eliminate a Vital Limit on Media Consolidation

Free Press, 8/06/26

https://www.freepress.net/news/free-press-plans-take-carr-court-over-repeal-ownership-cap

Opinion: Montana Should Stop Funding Media Blacklists

The Missoulian by State Rep. Amy Regier, 8/04/26

https://billingsgazette.com/opinion/column/article_0fcc17c6-cfb2-54b2-a39a-d273e965a82e.html

The Daily Wire, 8/03/26

https://www.dailywire.com/news/tom-delay-i-helped-create-the-fccs-ownership-cap-heres-how-we-did-it?topStoryPosition=undefined&author=Tom+DeLay&category=News+and+Commentary&elementPosition=1&row=1&rowHeadline=Top+Stories&rowType=Top+Stories&title=Tom+DeLay%3A+I+Helped+Create+The+FCC%E2%80%99s+Ownership+Cap.+Here%E2%80%99s+How+We+Did+It

Elon Musk’s X and WFA End Multiyear Legal Spat

AdWeek by Kendra Barnett, 7/29/26