* Trump administration has said it supports merger

* Deal would give combined company stations in markets

covering 80% of U.S. households

* Proposed merger comes as local stations face economic

pressures

(Adds DirecTV lawsuit in paragraph 4)

By David Shepardson

March 19 (Reuters) - A group of eight states filed suit

late on Wednesday in U.S. District Court in Sacramento,

California, to block Nexstar's proposed $3.54 billion

acquisition of Tegna ( TGNA ) that would make the combined

entity the largest U.S. broadcast station group.

California Attorney General Rob Bonta said the proposed

merger was illegal and would lead to higher pay-TV prices for

consumers and reduce newsroom jobs by jointly operating stations

in the same market.

"When broadcast media is owned by a handful of companies, we

get fewer voices, less competition, and communities lose the

critical check on power that local journalism delivers," Bonta

said.

DirecTV filed a separate suit late Wednesday also seeking to

prevent the deal. The merger will increase Nexstar's ability to

force pay-TV providers to pay higher fees to retransmit its

channels and argued Nexstar "will also shut down local newsrooms

in dozens of markets."

Last month, Federal Communications Commission Chair Brendan

Carr said he supported the deal and would be moving forward to

approve it after President Donald Trump publicly backed the

merger.

Trump has repeatedly pressured Carr to revoke the licenses

of NBC and ABC stations. Critics have said Carr is violating the

free speech rights of broadcasters.

"By vastly expanding its footprint nationwide, Nexstar would

gain significant control over editorial policy and have the

power to suppress viewpoints and exclude voices that are

essential to a robust political and social discourse," the

states' lawsuit said.

Nexstar and Tegna ( TGNA ) did not immediately respond to requests

for comment.

The states joining California in the lawsuit include New

York, Colorado, Connecticut, Illinois, North Carolina, Oregon

and Virginia.

Acquiring Tegna ( TGNA ) would expand Nexstar's presence to cover 80%

of TV households and would require the FCC to lift a cap on

station ownership.

Local broadcasters face increasing economic pressure as

Americans move away from watching traditional television,

shifting to on-demand streaming services and social media like

TikTok and YouTube.

Nexstar is the largest U.S. local television broadcasting

group, controlling more than 200 stations in 116 U.S. markets

reaching 220 million people, while Tegna ( TGNA ) owns 64 television

stations in 51 media markets, New York Attorney General Letitia

James said, adding if the merger was completed, 31 media markets

would see diminished competition.

Carr argues national networks like Comcast ( CMCSA )-owned

NBC and Walt Disney's ( DIS ) ABC have amassed too much power

and has said he wants to empower local affiliates owned by

companies like Tegna ( TGNA ) and Nexstar to preempt programming.

In September, Carr praised Nexstar for briefly opting not to

air "Jimmy Kimmel Live!" on its ABC-affiliated stations.

ABC briefly suspended Kimmel's show over comments he made

about the assassination of conservative activist Charlie Kirk.

Hours before the suspension, Carr warned local broadcasters who

aired Kimmel could face fines or loss of licenses and said "it's

time for them to step up."