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

K-Love Promotes Carlisle, Guffey to New Roles
Natalie Carlisle and Monica Guffey
Natalie Carlisle and Monica Guffey
K-Love has announced two senior leadership promotions within its development operation, naming Natalie Carlisle (far left) as Chief Revenue Officer and Monica Guffey as Vice President of Development. Carlisle moves up from Chief Development Officer, expanding More

105.3 The Fan Named Mavericks Radio Flagship
Dallas Mavericks
Dallas Mavericks
The Dallas Mavericks have signed a multi-year agreement with Audacy naming Sports KRLD-FM (105.3 The Fan) Dallas as the NBA franchise's official flagship radio station. The new partnership will make Mavericks game broadcasts available to more than nine million listeners across North Texas, with More

Jack Daniel to Retire After 54 Years in Radio
Jack Daniel
Jack Daniel
Beasley Media Group says longtime Charlotte radio programmer and personality Jack Daniel will retire September 18, bringing an end to a 54-year broadcasting career that has included more than five decades on the air and in management. Daniel currently serves as PD and midday personality at AC WKQC-FM (K More
Advertisement

The BobbyCast Celebrates 10 Year Anniversary
The Bobbycast
The Bobbycast
Bobby Bones is marking the 10th anniversary of his iHeartPodcast "Bobby Bones Presents: The BobbyCast," which has produced nearly 700 episodes over the past decade. Launched as a platform for Bones to have longer, more personal conversations with people he admired, "The BobbyCast" has grown into a More

Sean Hannity Marks 25 Years in Syndication
Sean Hannity
Sean Hannity
Premiere Networks is marking the 25th anniversary of "The Sean Hannity Show" in national syndication this month, with the program now heard on more than 700 News/Talk stations nationwide. The show reaches 99% of the U.S. and attracts millions of listeners, according to Premiere. Its podcast edition has also More

Smooth Jazz Top 20 Marks 1,000th Episode
Smooth Jazz Top 20
Smooth Jazz Top 20
The "Smooth Jazz Top 20 Countdown with Allen Kepler" will celebrate its 1,000th episode over Labor Day weekend, marking a milestone for the nationally syndicated Smooth Jazz Network program. Launched in 2007, the weekly countdown is based on airplay from Mediabase-reporting radio 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