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: Host Reads Boost Brand Impact
Cumulus Media and Westwood One
Cumulus Media and Westwood One
A new global advertising study finds creator-led ads, including radio and podcast host reads, can produce greater brand impact, particularly when advertisers identify themselves early and use entertaining, emotion-driven creative. The findings come from "The Creator Effectiveness Playbook: How to Build More

Zack Bennett Named Host of Pure American Country
Zack Bennett
Zack Bennett
Pure American Networks has named veteran Nashville broadcaster and producer Zack Bennett permanent host of the nationally syndicated weekly program "Pure American Country" and its daily companion feature, "Pure American Country Radio Minute." Bennett had served as interim host since the death of longtime More

Dana Cortez Show Takes Mornings at Q97.1 Fresno
The Dana Cortez Show with Greg & Dre
The Dana Cortez Show with Greg & Dre
The Dana Cortez Show has added Lotus Communications' KSEQ-FM (Q97.1) in Fresno to its affiliate lineup, taking over morning drive following the retirement of longtime morning team Greg & Dre. Beginning Monday, September 21, Dana Cortez, DJ Automatic and Anthony A. will anchor mornings on Q97.1 through the More
Advertisement

Urban One Names Yonni Rude Dallas Operations Manager
Yonni Rude
Yonni Rude
Urban One Dallas has named Yonni Rude Operations Manager, overseeing programming for the company's three Dallas-Fort Worth radio brands: KBFB (97.9 The Beat), KRNB (Smooth 105.7) and KKDA (K104). Rude moves to Dallas after spending the past three years as Program Director for Urban One's Houston stations More

Cedar Basin Media to Acquire Six Iowa Signals
Civic Media
Civic Media
Cedar Basin Media, a new unit of Civic Media, has reached an agreement to acquire six radio signals in Cedar Rapids and Waterloo, IA, from NRG Media. An application seeking approval of the transaction will be filed with the FCC. The deal includes Cedar Rapids stations KFMW-FM More

WMMB Host Bill Mick Retires After 25-Plus Years
Bill Mick
Bill Mick
Longtime Space Coast radio personality Bill Mick is retiring from iHeartMedia's WMMB (92.7 WMMB), concluding more than 25 years on the air in Melbourne, FL. His final edition of "Bill Mick LIVE" airs Friday, September 18. Mick began his Space Coast radio career in 1998 and took over mornings at WMEL in 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