Home Login RADIO ONLINE RSS Facebook
Advertisement

CBO Rebuts Cost Concerns Over AM Radio Mandate


Congressional Budget Office (CBO)
Congressional Budget Office (CBO)

In a definitive response to automaker concerns, the Congressional Budget Office (CBO) has released a new cost estimate regarding the "AM Radio for Every Vehicle Act of 2025," signaling minimal financial impact from the proposed mandate. The legislation, which aims to ensure AM radio's availability in passenger vehicles, has been a topic of contention among vehicle manufacturers, particularly those in the electric vehicle (EV) sector.

According to the CBO's report, the legislation, if enacted, would direct the Department of Transportation (DOT) to implement rules making AM broadcast stations accessible in all new passenger vehicles sold or imported in the U.S. The mandate encompasses vehicles designed to carry up to 12 passengers but excludes motorcycles.

Despite claims from automakers that the addition of electromagnetic shielding or other modifications necessary to support AM radio would be costly, the CBO's findings contradict these claims. The office estimates that implementing these changes will involve "several millions of dollars" annually-a figure well below the significant financial burdens projected by some industry players. This estimate considers the updating of radio equipment in approximately 2 to 2.5 million vehicles annually, primarily affecting electric vehicles that have phased out AM radio compatibility.

Furthermore, the CBO projects that any direct federal spending required to enforce this legislation would be minimal, totaling around $1 million over five years, pending appropriation. Additionally, potential civil penalties levied on non-compliant manufacturers are expected to generate less than $500,000 over a decade.

The bill also includes provisions for a Government Accountability Office (GAO) study on AM radio's role in emergency communications, reinforcing the public safety benefits touted by proponents of the mandate.

In terms of regulatory impacts, the bill would preempt state and local regulations concerning AM radio access in vehicles, which the CBO notes would not significantly impact state or local government revenues.

This cost estimate marks the third instance wherein the CBO has challenged automaker assertions about the prohibitive costs of maintaining AM radio access, underlining a key federal stance on the issue's economic feasibility as the legislation continues to make its way through Congress.

Advertisement

Latest Radio Stories

NAB Names Hellum Radio Board First Vice Chair
National Association of Broadcasters (NAB)
National Association of Broadcasters (NAB)
The National Association of Broadcasters (NAB) has named Townsquare Media Chief Operating Officer Erik Hellum first vice chair of the executive committee for the NAB Radio Board, while Salem Media Group CEO Dave Santrella has been appointed to the Radio Board of Directors. Both appointments are effective More

Audacy Index Ranks Markets for NFL Fan Intensity
Audacy Insights
Audacy Insights
Buffalo tops the list of U.S. markets with the most avid NFL fans, according to new research from Audacy examining where football fandom is strongest and how highly engaged fans consume sports content. Audacy's "NFL Attention Index" measures fandom across three areas - avidity, engagement and performance More

Broadcast Communications to Acquire WOGG, WPKL
Broadcast Communications, Inc.
Broadcast Communications, Inc.
Broadcast Communications, Inc. has agreed to acquire WOGG-FM (Froggy 94.9) and WPKL-FM (Pickle 99.3) from Forever Media for $995,000. WOGG, licensed to Oliver, PA, operates at 94.9 MHz with 1.95 kW and airs a Country format as Froggy 94.9. WPKL, licensed to Uniontown, PA, More
Advertisement

KUT News Adds Three to Austin Newsroom
Brian Diggs
Brian Diggs
KUT News and The Texas Newsroom are adding three journalists to their Austin operation, with Brian Diggs (pictured), Toluwani Osibamowo and Charlie Sharpe joining the public media newsroom this fall. Diggs joins as visuals editor and will lead multimedia efforts across KUT News, Texas Standard and KUTX More

Surround Launches 'The Design Drop' Podcast
The Design Drop
The Design Drop
Surround Podcast Network has launched "The Design Drop," a new podcast offering career advice and guidance for emerging professionals in the architecture and design industry. Hosted by Caroline Murphy, FutureGen Engagement Lead at Sandow Design Group, the podcast debuts with a first season sponsored by More

Wave Adds 'Bad Friends' to Podcast Roster
Bad Friends
Bad Friends
Wave Sports & Entertainment has struck a deal to oversee advertising sales and distribution for "Bad Friends," the weekly comedy podcast hosted by Andrew Santino and Bobby Lee. The agreement expands Wave's relationship with Santino, whose solo podcast "Whiskey Ginger" joined the company's roster earlier More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement