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

Urban One Expands Dallas Footprint with KKDA, KRNB
Urban One
Urban One
Urban One has reached an agreement to acquire Service Broadcasting Group, including Dallas stations KKDA and KRNB, while also agreeing to sell KZMJ to Fuzion Dallas. Both transactions remain subject to approval by the FCC and customary closing conditions. The company said the More

NAB Opens 2026 Marconi Awards Nominations
Marconi Radio Awards
Marconi Radio Awards
The National Association of Broadcasters (NAB) has opened the nomination window for the 2026 Marconi Radio Awards, with entries accepted through May 31. Winners will be announced during a special dinner program sponsored by Xperi on October 20 at the Edison Ballroom. The event More

Zimmer Urges FCC to Drop Radio Ownership Caps
Zimmer Media
Zimmer Media
Zimmer Radio of Mid-Missouri is calling on the Federal Communications Commission (FCC) to eliminate longstanding local radio ownership limits, arguing the rules are outdated and hinder broadcasters' ability to compete in today's media landscape. In a letter filed April 27 in MB Docket No. 22-459, company More
Advertisement

Whitten Named Program Director of Indie 102.3
Jessi Whitten
Jessi Whitten
Colorado Public Radio (CPR) has appointed Jessi Whitten as Program Director of Indie 102.3, its independent music service, effective June 8. Whitten brings more than a decade of experience in radio programming, artist development and community engagement. She previously served as Music Director for CPR's More

World Cup Presents Major Opportunity for Radio
Nielsen
Nielsen
A new report from Nielsen highlights the 2026 FIFA World Cup as a significant opportunity for radio and audio platforms, as U.S. soccer fans increasingly turn to those channels for sports content and engagement. According to the report, soccer interest in the U.S. continues to More

Mercedes Rich Upped to APD at Life 107.1 Des Moines
Mercedes Rich
Mercedes Rich
KNWI (Life 107.1) in Des Moines has promoted Mercedes Rich to Assistant Program Director, effective April 27. She will continue to host afternoons on the station. Rich joined the station in March 2025 as Creative Services Director and has since taken on a larger role within the organization. In her new 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