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

Broadcast Industry Group Sells Arkansas Trio for $2M
Blacksun Private Equity
Blacksun Private Equity
Broadcast Industry Group LLC has agreed to sell three Arkansas AM stations and their associated FM translators to Blacksun Private Equity Inc. for $2 million, according to an assignment application filed with the FCC. The deal includes KLRG-AM/Sheridan, KASZ-AM (formerly KJJI)/White Hall and KCAT-AM/Pine More

Family Life Closes on Acquisition of WOGI-FM for $1M
Family Life Radio
Family Life Radio
Family Life has closed on its previously announced acquisition of Country WOGI-FM (104.3) in Moon Township, PA, and Pittsburgh translator W288BO (105.5) from Forever Media for $1 million. WOGI-FM operates with 13,000 watts and serves the greater Pittsburgh area. The acquisition will add the station More

Holiday Music Connects Radio With Consumers
Katz Radio Group
Katz Radio Group
Holiday music remains an important part of the season for consumers, with 69% listening to seasonal music on AM/FM radio, according to new research from Katz Radio Group. The findings, featured in Katz's latest "Sound Answers," are based on a custom survey conducted in December More
Advertisement

FCC Dismisses 36 LPFM Applications Over Localism
Federal Communications Commission (FCC)
Federal Communications Commission (FCC)
The FCC's Media Bureau has dismissed 36 applications for new Low Power FM stations connected to broadcaster and organizer Stephen Wade Rathke and the Affiliated Media Foundation Movement (AMFM), finding that the applicants failed to meet the Commission's LPFM localism requirements. The applications, More

Study Finds 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

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