FCC Imposes Broad 'Foreign Adversary Control' Reporting Requirements
Continuing its active approach to national security-oriented regulatory activity over the last year, the Federal Communications Commission (FCC or Commission) issued a Report and Order (Order) on January 29, 2026, establishing new attestation and public disclosure requirements designed to increase transparency regarding whether and to what extent foreign adversaries hold interests in licensees, authorization holders, and other regulated entities. The Order also directs the creation of a centralized reporting system and explains enforcement procedures. The Order will take effect 60 days after publication in the Federal Register, which typically occurs within two to four weeks from adoption (i.e., likely in late March).
The FCC has enforced foreign ownership restrictions for certain spectrum licensees and other regulated entities for decades under its organic act, the Communications Act of 1934, as amended. However, in recent years, the FCC has sought to restrict or revoke licenses and other authorizations held by foreign adversaries. The Order builds on these recent measures by imposing new reporting requirements related to “foreign adversary control,” meaning entities “owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary.”
Foreign adversary control. Consistent with other national security regulatory provisions, the Order defines “foreign adversary” to include:
Foreign adversary country. The term “foreign adversary country” includes both foreign governments identified as foreign adversaries and countries controlled by a foreign adversary.
Owned by, controlled by, or subject to the jurisdiction of a foreign adversary. This term covers:
The Order explains that the Commission set the 10% threshold and included equity and controlling interests as well as voting interests to both promote cross-agency regulatory consistency and support national security goals by “capturing all mechanisms of Foreign Adversary Control.” To the extent a regulated entity believes that a foreign adversary interest holder’s 10% or greater voting and/or equity interest does not allow the interest holder to “determine, direct, or decide important matters affecting an entity,” the regulated entity must attest affirmatively to the Commission and “demonstrate by clear and convincing evidence why such interest does not” do so.
The Order sorts all licenses, leases, authorizations, permits, grants, and other approvals subject to the foreign adversary control reporting requirements into three schedules (A, B, and C) based on a variety of factors, including national security risks and reporting burdens.
Federally recognized tribal nations, businesses controlled by federally recognized tribal nations, and state and local governmental entities are exempt from the Order’s attestation and disclosure requirements.
Holders of or applicants for authorizations on Schedule A are required to attest as to whether or not they are subject to foreign adversary control. If a regulated entity is unsure of how to respond, the entity “must respond ‘yes,’ and Commission staff will review the matter.” “No” responses will be taken as definitive, and filers will not be permitted to seek clarification or include any explanatory information in their responses.
Schedule A includes authorizations that the FCC has determined pose a heightened national security risk because their exploitation by a foreign adversary “could directly compromise the integrity of the nation’s communications networks.” The Commission also considered regulated entities’ resources to comply with mandatory reporting burdens.
Schedule A consists of:
Holders of or applicants for authorizations on Schedule B must make an attestation only if they are subject to foreign adversary control.
Schedule B includes authorizations that pose a lower risk than Schedule A authorizations but nevertheless involve “operat[ing] in markets or provid[ing] services where knowledge of the presence of Foreign Adversary Control would be critical to the Commission’s oversight and protection of the nation’s communications networks.”
Schedule B consists of:
Holders of or applicants for authorizations on Schedule C are exempt from initially attesting as to whether or not they are subject to foreign adversary control.
Schedule C includes authorizations for which the FCC assesses there is a limited likelihood of foreign adversary control, other reporting obligations already provide sufficient visibility into foreign ownership or control, authorization holders’ role in communications networks presents minimal national security risks, or authorization holders are already subject to other Commission regulations that adequately address the national security risks.
Schedule C consists of:
The Order delegates to the FCC bureaus and offices responsible for issuing authorizations the authority to modify the list of authorizations within each schedule to add a new authorization, reassign an existing authorization from one schedule to another, or remove an authorization from the schedules, subject to analysis of the following factors:
The Order imposes broad ownership reporting and monitoring requirements for regulated entities subject to foreign adversary control. Any regulated entity that affirmatively attests to being subject to foreign adversary control must disclose to the FCC additional information about such control, including:
The entity must also attest to the truth and accuracy of all information in its disclosures.
Regulated entities holding or applying for a Schedule A or B authorization must file an initial attestation with the Commission within 60 days (or 120 days for “small entities” meeting the definition of a small business for purposes of the Regulatory Flexibility Act of 1980) after public notice of the launch of a new, consolidated reporting system, discussed further below. The information filed must be accurate as of the start of that 60-day period.
Regulated entities holding a Schedule A or B authorization must file new attestations and, if affirmative, make additional disclosures in certain circumstances.
The Commission will create a consolidated reporting database called the Foreign Adversary Control System for all required attestations and disclosures. Reporting will generally be made available to the public, but the Order acknowledges the possibility that certain information may need to remain nonpublic and directs bureaus and offices to coordinate regarding such withholding.
The Order indicates that the Commission may take a range of enforcement actions against regulated entities that fail to comply, including issuing citations, imposing monetary penalties, or more serious actions that result in license or authorization revocations. Relevant licensing bureaus and offices are directed to refer holders of and applicants for Schedule A authorizations that fail to file the required attestation or file late, and may also refer any regulated entity whose attestation they believe is incomplete or inaccurate, to the Enforcement Bureau for possible enforcement action. The FCC’s authority to impose monetary fines is currently uncertain in the wake of SEC v. Jarkesy (2024) and a split among circuit courts that followed it, which the Supreme Court of the United States has agreed to resolve in Verizon v. FCC.
The Order further details streamlined revocation procedures consisting of (1) notice of deficiency and opportunity to respond (except in the case of willfulness or those in which public health, interest, or safety requires otherwise); (2) order to show cause; and (3) order on revocation. The Enforcement Bureau and licensing bureaus and offices are also authorized to use additional procedures if necessary.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.
Editorial Disclaimer
Originally published before the Ashurst Perkins Coie combination. See disclaimer.