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

Study: AM/FM Leads Young Listeners in Cars
Edison Research at SSRS
Edison Research at SSRS
AM/FM radio accounts for 70% of ad-supported audio listening in the car among Americans ages 13-34, according to new data from Edison Research at SSRS' Share of Ear study. The research found that Americans in the 13-34 demographic spend an average of just under one hour per day listening to audio in the More

Connoisseur Makes Bay Area Programming Changes
Connoisseur Media
Connoisseur Media
Connoisseur Media has announced a series of programming and personnel changes across its Bay Area radio cluster, including expanded roles for Big Reid, Morris Knight, Ileana Matzorkis and Richie Brown. Big Reid moves to mornings on 102.9 KBLX effective immediately, joining Freska and replacing Rudy More

iHeart Leads Podtrac August Publisher Rankings
Podtrac
Podtrac
iHeart Audience Network and iHeartPodcasts remained atop Podtrac's U.S. Podcast Publishers & Networks ranking for August 2026, while "Crime Junkie" continued as the top podcast based on U.S. unique monthly audience. iHeart Audience Network ranked first among publishers and sales networks with 58.875 More
Advertisement

Benztown to Syndicate Yacht Rock Radio
Yacht Rock Radio
Yacht Rock Radio
Benztown and Yacht Rock Radio have entered into a new syndication partnership that will expand distribution of the two-hour weekly program to radio outlets nationwide. Hosted by radio and television veteran Captain Adam, "Yacht Rock Radio" has added 20 affiliates in 2026 and is now heard on more than 122 More

Jeremy Nobles Named PD of Life 97.9 Fargo
Jeremy Nobles
Jeremy Nobles
KFNW (Life 97.9) in Fargo, ND, has promoted Jeremy Nobles to Program Director. Nobles moves into the programming post after serving as the Contemporary Christian outlet's Assistant Program Director since February, 2025. "Jeremy is a blast to work with," said Life 97.9 Station Manager Jarrett Stevens. "I More

RAB Sets AI-Powered Radio Sales Presentation
Radio Advertising Bureau (RAB)
Radio Advertising Bureau (RAB)
The Radio Advertising Bureau (RAB) will present the next installment of its "AI Advantage for Radio Sales" live presentation series, "Why Radio: AI-Powered Selling," on Wednesday, September 16 at noon CT. Sponsored by Spotwise.ai, the session will focus on RAB's AI-powered Why Radio Assistant and how 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