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

Civic Media Closes Deal for Milwaukee Stations
Civic Media
Civic Media
Civic Media has completed its acquisition of WZTI-AM (1290) in Greenfield, WI, along with FM translators W262CJ (100.3) in Milwaukee and W297BY (107.3) in Franklin, from Milwaukee Radio Alliance, LLC. Milwaukee Radio Alliance, led by acting CEO Diane Sutter, divested the stations More

Podcasts Reshape Listening and Ad Engagement
Audacy Insights
Audacy Insights
Podcast listening has surged over the past decade, fundamentally changing how audiences allocate their time and how advertisers reach consumers, according to a new Audacy Insights analysis drawing on Edison Research data. Daily podcast consumption among U.S. adults has climbed from 6% in 2015 to 23% in More

FCC Orders Texas Licensee to Pay Fees or Face Revocation
Federal Communications Commission
Federal Communications Commission
The FCC has ordered Mekaddesh Group Corporation to either pay nearly $18,500 in overdue regulatory fees or demonstrate why the debt should be waived, warning that failure to comply could result in the loss of its FM station license. In an Order to Pay or Show Cause released March 24, the FCC said the More
Advertisement

Magellan AI Adds Broadcast Radio Attribution Tool
Magellan AI
Magellan AI
Magellan AI has launched Broadcast Radio Attribution, a new measurement solution designed to help advertisers evaluate the performance of broadcast radio alongside digital channels within a single platform. The tool enables advertisers to track how radio campaigns contribute to key business outcomes such More

VSiN Expands Sports Betting Shows to Detroit Radio
VSiN
VSiN
VSiN has expanded its sports betting programming into Detroit, adding distribution in one of the nation's top 15 media markets. The network's content is now available on Sports Rap Network WGPR-FM 107.5 HD2 and via streaming at SportsRapNetwork.com. Under the agreement, Sports Rap Network is airing More

SiriusXM Unveils Full MLB Coverage for 2026 Season
SiriusXM
SiriusXM
SiriusXM will deliver wall-to-wall audio coverage of the 2026 Major League Baseball season, offering listeners access to every game from Opening Night through the World Series, along with daily programming on its MLB Network Radio channel. Coverage begins March 25 with Opening 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