* FCC says it is waiving 39% broadcast ownership cap

* Critics say deal will lead to higher prices, fewer

newsroom jobs

* FCC chair wants to empower stations to push back

against broadcast networks

(Adds Democratic critic, more details, background in paragraphs

4-15)

By David Shepardson and Juby Babu

WASHINGTON, March 19 (Reuters) - The Federal

Communications Commission said on Thursday it approved the $3.54

billion sale of local television station owner Tegna ( TGNA ) to

Nexstar, despite objections from Democratic-led states.

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

of U.S. TV households. The FCC said it is waiving a rule that

allows broadcast television station owners to reach no more than

39% of U.S. television audience households as part of its

approval.

"By approving this transaction, which allows Nexstar to own

less than 15% of television stations, the FCC acts mindful of

the media marketplace that exits today - not the one from

decades past," FCC Chair Brendan Carr said in a statement.

In February, President Donald Trump said he supported the

deal. 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.

The approval comes a day after a group of eight states filed

a suit in the U.S. District Court in Sacramento, California, to

block the merger that would make the combined entity the largest

U.S. broadcast station group.

Streaming and satellite TV provider DirecTV also filed a

separate suit, seeking to prevent the deal, late on Wednesday.

"This transaction is essential to sustaining strong local

journalism in the communities we serve," Nexstar CEO Perry Sook

said in a statement.

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.

The FCC order said the deal "will help preserve Nexstar's

ability to influence network programming through collective

negotiation and to preempt network programming in favor of

programming that better serves the local community."

Democratic FCC Commissioner Anna Gomez criticized the deal,

saying it concentrates "broadcast power in fewer corporate

hands, shrinking independent editorial voices, and prioritizing

national business interests over local needs."

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.

Nexstar has agreed to divest six stations within two years

in the deal valued at $6.2 billion including debt.

In September, Carr praised Nexstar for briefly opting not to

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

ABC temporarily 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."