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

Good Karma Brands Rebrands as Good Karma Sports
Good Karma Sports
Good Karma Sports
Good Karma Brands has changed its name to Good Karma Sports, adopting a new identity the company says better reflects its growth from a single radio station into a national sports media and marketing business. The company, founded with one radio station in December 1997, now More

Martha Stewart Podcast Expands to Netflix
The Martha Stewart Podcast
The Martha Stewart Podcast
Martha Stewart and iHeartPodcasts are expanding "The Martha Stewart Podcast" to Netflix, where full video episodes of the series will debut Wednesday, August 26. The move is part of iHeartMedia and Netflix's growing exclusive video podcast partnership. The program will continue to be distributed as an audio More

iHeartPodcasts Sets 9/11 Mafia Drama 'UnderGround Zero'
''UnderGround Zero: 9/11 & The Mob''
''UnderGround Zero: 9/11 & The Mob''
iHeartPodcasts, Thoroughbred Studios and Goldhawk Productions will launch "UnderGround Zero: 9/11 & The Mob," a scripted drama starring several former "The Sopranos" cast members and based on events surrounding organized crime in the aftermath of the September 11 attacks. The series, written and created More
Advertisement

Radio Features Mark 25th Anniversary of 9/11
Patriot Day Remembrance
Patriot Day Remembrance
A new series of 30-second radio features has been produced to help stations commemorate the 25th anniversary of the September 11, 2001 terrorist attacks. The package consists of ten professionally produced features remembering the nearly 3,000 people who lost their lives in the attacks and honoring the More

Rob Archer Joins WSB Atlanta as Anchor/Reporter
Rob Archer
Rob Archer
Veteran broadcast journalist Rob Archer is joining WSBB-FM (95.5 WSB) in Atlanta as an anchor/reporter, returning to a full-time radio role a little more than a year after his departure from KNX in Los Angeles. Archer will begin at WSB next month, where he will again work with Ken Charles, his former boss at More

Jarrett Payton Joins The Score's Morning Show
Jarrett Payton
Jarrett Payton
WSCR-FM (104.3 The Score) in Chicago will launch a new morning show pairing Jarrett Payton with David Haugh beginning August 31. "Haugh and Payton" will air weekdays from 5:30-10am CT, adding the former NFL running back and veteran Chicago broadcaster to The Score's weekday lineup. Payton most recently 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