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

Ben Marcotte Named PD of Rock 105 and KGB San Diego
Ben Marcotte
Ben Marcotte
iHeartMedia has named Ben Marcotte Program Director of Rock KIOZ (Rock 105.3) and heritage Rock 101.5 KGB in San Diego, effective immediately. In his new role, Marcotte will oversee programming as well as social and digital strategy for both stations. He will report to iHeartMedia Executive Vice More

KiKi B. Jones Named WAMO Pittsburgh Brand Manager
KiKi B.
KiKi B.
Audacy has elevated KiKi B. Jones to Brand Manager of WAMO 107.3 in Pittsburgh. In her new role, Jones will oversee the station's content strategy, talent, operations and branding while continuing to host middays weekdays from 10am-4pm ET. "I've had the privilege of knowing KiKi for over 10 years and More

Study: Radio Campaign Drove Retail Foot Traffic
Cumulus Media and Westwood One
Cumulus Media and Westwood One
An AM/FM radio advertising campaign for a major retailer generated a 34% lift in foot traffic during a Valentine's Day promotion, according to a new analysis highlighted by the Cumulus Media | Westwood One Audio Active Group. The study, conducted by location analytics firm Placer.ai, examined store More
Advertisement

BFOA Names First Scholarship Fund Recipients
Broadcasters Foundation of America (BFOA)
Broadcasters Foundation of America (BFOA)
The Broadcasters Foundation of America (BFOA) has named Nathaniel Bradley and Inoa Manfredy as the inaugural recipients of its Scholarship Fund, with each receiving $10,000 toward college tuition. The needs-based program was created to support students from broadcast families who are More

SiriusXM Names Sean Gibbons Chief P&T Officer
Sean Gibbons
Sean Gibbons
SiriusXM has promoted Sean Gibbons to Senior Vice President and Chief Product and Technology Officer, overseeing product and technology operations across SiriusXM and Pandora. Gibbons will report to SiriusXM CEO Jennifer Witz and join the company's Executive Leadership Team. His responsibilities include More

1010 WINS Sets 25th Anniversary 9/11 Coverage
Audacy's 1010 WINS in New York will provide extensive live coverage of events marking the 25th anniversary of the September 11 terrorist attacks on Friday. Coverage will begin at 8:30am ET with the annual 9/11 Memorial ceremony. Reporters Juliet Papa and Scott Stanford will 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