CPB, NPR Settle Interconnection Dispute; PMI Grant Moves Forward.

The Corporation for Public Broadcasting (CPB) and National Public Radio (NPR) have reached a broad settlement that closes NPR’s lawsuit challenging CPB’s decision to award the next five-year public radio interconnection grant to Public Media Infrastructure (PMI), while also resolving NPR’s separate challenge to Executive Order 14290. The outcome clears the way for CPB’s grant to PMI to be fully implemented — and secures continued funding for NPR’s operation of the Public Radio Satellite System (PRSS).

In the agreement, NPR withdrew all objections to CPB’s selection of PMI, a coalition of public media organizations whose proposal was deemed superior through CPB’s competitive bidding process last summer. CPB says the settlement “reaffirms” its authority under the Public Broadcasting Act to steward federal funds and choose the provider that best serves the full public media system. The CPB Board unanimously approved the settlement.

At the same time, NPR and CPB filed a joint stipulation stating that Executive Order 14290 — which sought to halt federal funding to NPR and PBS — is unconstitutional. CPB also agreed it will not implement or enforce the executive order unless ordered by a court. CPB has now disbursed prior-year congressionally appropriated funds to NPR to support PRSS operations, consistent with a new five-year amendment to the existing interconnection grant.

Dual Track: PMI Implementation and PRSS Stability

With the legal challenge resolved, CPB is moving ahead with its award to PMI, which aims to modernize radio distribution and develop new digital and terrestrial delivery technologies. “This costly and unnecessary litigation is over, and our investment in the future through PMI marks an exciting new era for public media,” CPB President/CEO Patricia Harrison said.

PMI leaders say the coalition will focus on “innovation, collaboration, and transparency” in building a distribution system shaped by stations and responsive to local needs. NPR will also continue to receive CPB funding to operate the PRSS satellite network, supporting current operations and potential service enhancements.

In a parallel move, NPR announced it will provide two years of full PRSS interconnection fee relief to all interconnected stations — a direct financial boost for local public radio outlets. NPR says the decision is part of a broader commitment to “fortifying the public radio system,” including accelerated work on new, cost-effective terrestrial distribution solutions.

Ongoing Court Fight Over Executive Order 14290

Although the dispute with CPB over the PMI grant has been settled, NPR’s litigation against the federal government continues. In an Oct. 30 status conference, the court said NPR had made “a very substantial showing” that CPB’s initial decisions were influenced by federal efforts to penalize NPR for its journalism. In the Nov. 17 stipulation, both NPR and CPB acknowledged those statements from the court.

“The settlement is a victory for editorial independence,” said NPR President/CEO Katherine Maher. “We’re glad to resolve the dispute with CPB in a way that ensures stability for PRSS while allowing us to continue pursuing our claims against the unconstitutional Executive Order.” A hearing in that case is scheduled for Dec. 4.

NPR will dismiss several claims against CPB without prejudice. Its separate challenge to the Executive Order will move forward.

How the Dispute Unfolded

The conflict dates back to 2024, when independent consultants recommended CPB create a new interconnection entity independent of NPR. After months of unsuccessful negotiations over governance changes to PRSS, CPB launched a competitive RFP. Both NPR and PMI submitted bids; Deloitte, hired to evaluate the proposals, found PMI’s submission superior. CPB’s Board voted in September to begin negotiations with PMI, ultimately awarding the grant.

NPR filed suit shortly after, alleging CPB acted to appease federal pressure. CPB rejected that claim, noting it had continued to disburse millions of dollars to NPR, PBS, and stations despite the executive order. With the settlement now in place, CPB says the process reflects its mandate to support the full public media system and prepare for a rapidly evolving media environment.

Both organizations characterized the resolution as a win for public radio — one that stabilizes funding, lowers station costs, and sets the stage for long-term innovation in audio distribution, even as the constitutional fight over the executive order proceeds.