A method for localized congestion exposure within a local loop in a cellular network that is performed by a localized congestion exposure receiver node of the local loop. The method includes receiving downlink packets destined for a downstream user device. The downlink packets have headers that indicate a level of congestion experienced by the downlink packets. The headers also indicate a level of expected downstream congestion declared by an upstream node. The method also includes forwarding the downlink packets to the downstream user device through a wireless connection. The method further includes sending packets upstream that have feedback indicative of the level of congestion experienced by the downlink packets and any congestion experienced within the localized congestion exposure receiver node.