The Corporation for Public Broadcasting agreed Monday to fulfill a $36 million, multi-year contract with NPR that it had yanked after pressure from the Trump White House.
The arrangement resolves litigation filed by NPR accusing the corporation of illegally yielding to Trump's demands that the network be financially punished for its news coverage. The argument, part of a broader lawsuit by NPR and several stations against the Trump administration, focused on CPB funding for NPR's operation of a satellite distribution system for local public radio stations. NPR announced Monday it would waive all fees for the stations associated with the satellite service.
The judge in the case had explicitly told CPB's legal team he did not find its defense credible. CPB lawyers had argued that the decision to award the contract to a new consortium of public media institutions was driven by a desire to foster digital innovations more swiftly.
"The settlement is a victory for editorial independence and a step toward upholding the First Amendment rights of NPR and the public media system in our legal challenge to [Trump's] Executive Order," Katherine Maher, President and CEO of NPR, said in a statement. "While we entered into this dispute with CPB reluctantly, we're glad to resolve it in a way that enables us to continue to provide for the stability of the Public Radio Satellite System, offer immediate and direct support to public radio stations across the country, and proceed with our strong and substantive claims against this illegal and unconstitutional Executive Order. We look forward to our day in court in December."
In its submission Monday evening to the court, CPB did not concede that it had acted wrongfully — nor that it had yielded to political pressure from the administration.
Instead, in a statement posted on its website, CPB asserted its side "prevails" as a result of the settlement.
"This is an important moment for public media," said Patricia Harrison, President and CEO of CPB. "We are very pleased that this costly and unnecessary litigation is over, and that our investment in the future through [Public Media Infrastructure] marks an exciting new era for public media." CPB had awarded a rival contract to PMI, a newly created consortium of public radio organizations including several major stations, to ensure the digital distribution system functions properly. That contract will continue, CPB said.
Federal subsidies for public broadcasting stopped on Oct. 1 as a result of a party-line vote over the summer by Congress, called a rescission. Only a skeleton crew remains at CPB, which was created as a nonprofit corporation more than a half-century ago to funnel federal subsidies to public media. While PBS has had layoffs and NPR is monitoring its own finances, many local stations across the country have been hit hard.
Over the course of the litigation this fall, mounting evidence appeared to demonstrate that CPB's board chair and executives had acted against NPR in what turned out to be a futile attempt to salvage the corporation's own future.
In hearings last month in Washington, D.C., U.S. District Court Judge Randolph Moss told CPB's legal team they had not made a credible case for why the corporation reneged on the contract just a day after a top White House official warned senior CPB leaders against doing business with NPR. A trial had been set to start on Dec. 1.
CPB's change of mind — and NPR's ensuing lawsuit — sparked consternation and unease within the larger public media ecosystem. The two organizations had served as partners for decades. But that relationship frayed earlier this year, as the system came under attack from the Trump administration.
Trump's public campaign against NPR and PBS started in earnest soon after he returned to the White House. Trump kicked it into high gear in late March with a series of social media posts.
In early April, CPB leaders sought to get money out the door before Trump took action against public media. On April 2, CPB's board approved the extension of a contract with NPR to distribute public radio programs, including those not produced by NPR. The arrangement stretched back four decades. The amount included millions still due on the then-current contract.
The next day, CPB's board chair and two senior executives met with a top White House budget official who attested to her "intense dislike for NPR." The budget official told them CPB didn't have to "throw the baby out with the bathwater," according to a deposition from CPB executive Clayton Barsoum submitted as part of NPR's legal filings.
And the day after that — just 48 hours after that board vote — CPB reversed itself. CPB executive Kathy Merritt informed NPR's top official over the satellite and distribution service that it had to be spun off: it could not be part of NPR. NPR refused to do so. CPB revised the scope of the contract and solicited new bids. NPR's submission proved unsuccessful.
Meanwhile, the White House was ramping up the pressure. It accused NPR and PBS of bias. On April 14, for example, it issued a formal statement that called their offerings "radical, woke propaganda disguised as 'news'." NPR and PBS's chief executives have rejected the accusations of bias.
On May 1, Trump issued an executive order that no federal money should go to the two public broadcasting networks. NPR and three Colorado public radio stations then filed suit against the White House, saying they were being unlawfully punished because the president did not like their news coverage. They contended the executive order represented a violation of First Amendment protections. Their suit names CPB as a defendant as well for, in their characterization, bending to the president's will. In Monday's legal filing, CPB agreed that the executive order was precisely the sort of government interference that Congress sought to prevent in establishing CPB as it did.
In the summer, Republican leaders in the U.S. Congress, urged on by Trump, pulled back all $1.1 billion for future public broadcasting that had already been approved and signed into law by the president.
Throughout the legal battle, NPR has said, regardless of the outcome of the case, it would work with Public Media Infrastructure.
NPR's broader constitutional case against Trump's executive order purporting to ban federal funding of public media continues. A hearing on its merits is scheduled for December.
Disclosure: This story was reported and written by NPR media correspondent David Folkenflik. It was edited by Deputy Business Editor Emily Kopp and Managing Editors Gerry Holmes and Vickie Walton-James. Under NPR's protocol for reporting on itself, no NPR corporate official or news executive reviewed this story before it was posted publicly.
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