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

LPM Names Hines Business Partnerships Director
Melissa Hines
Melissa Hines
Louisville Public Media (LPM) has appointed Melissa Hines as Senior Director of Business Partnerships, effective July 7. She brings more than 15 years of experience in revenue generation and marketing, having led high-performing teams across cultural organizations, venture-backed startups and Fortune 1000 More

Audacy Study Highlights News/Talk's Marketing Power
Audacy
Audacy
Audacy is making the case that News/Talk radio remains one of the most valuable environments for advertisers, citing new research that positions the format as radio's largest across both broadcast and streaming while highlighting high levels of audience loyalty, trust and purchasing power. According to More

Fuzion 94.5 Set to Debut on 94.5 FM in Dallas
KFZN (Fuzion 94.5) Dallas-Fort Worth
KFZN (Fuzion 94.5) Dallas-Fort Worth
Encouragement Media Group (EMG) has launched Spanish Christian Fuzion Radio on 94.5 FM in Dallas-Fort Worth, bringing what the company says is the region's first full-power Spanish Christian format to one of the nation's largest Hispanic communities. The former Adult R&B outlet KZMJ More
Advertisement

Jeffrey Parke to Retire From KCAL, KOLA
Jeffrey Parke
Jeffrey Parke
Jeffrey Parke will retire July 24 after nearly 40 years with KCAL-FM and KOLA-FM, closing a broadcasting career that helped shape two of the Inland Empire's most successful radio outlets. Parke joined KCAL-FM on January 1, 1987, as Sales Manager and was promoted to General Manager in 1989. During his tenure, More

Lauren ''Lern'' Elwell Joins 97.1 The Drive Evenings
Lauren ''Lern'' Elwell
Lauren ''Lern'' Elwell
Hubbard Radio Chicago has added Lauren "Lern" Elwell to the on-air lineup at Classic Rock WDRV (97.1 The Drive), where she will host evenings. A Chicago-area native, Elwell returns to her home state with what she described as an exciting new chapter in her career. "I am beyond thrilled to be back in the More

Trapper Young Takes Mornings at 95.9 The Goat
Chuck Archer
Chuck Archer
Centennial Broadcasting has named longtime Fredericksburg radio personality Trapper Young as the new morning host of Classic Hits WGRQ-FM (95.9 The Goat) in Fredericksburg, VA. Young officially launched the "Trapper In The Morning Show" after concluding a 29-year run in afternoons on sister WBQB (B101.5), 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