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

Sam Pieprzyca Named PD of 102.7 Bob FM San Antonio
Sam Pieprzyca
Sam Pieprzyca
KJXK-FM (102.7 Bob FM) in San Antonio has named veteran radio personality Sam Pieprzyca as Program Director, expanding his role with the station as it continues to evolve its Adult Hits format. Pieprzyca brings more than 20 years of experience in the format within the San Antonio market, along with More

CJ Robinson Named Brand Manager of Mix 105.1
CJ Robinson
CJ Robinson
Audacy has expanded the role of CJ Robinson, naming him Brand Manager of WOMX-FM (Mix 105.1) in Orlando. In his new position, Robinson will oversee the station's content strategy, talent, operations and overall branding. Robinson will continue his on-air duties as co-host of "MIX Mornings with CJ & More

Cafe Nashville Relaunches with Radio.Cloud Platform
Radio.Cloud
Radio.Cloud
Country music content hub Cafe Nashville has relaunched its 24/7 station and syndicated programming using the Radio.Cloud platform, introducing enhanced flexibility and localized delivery for affiliates. The move brings both its six-hour daily show and one-hour weekly program onto Radio.Cloud's cloud-based More
Advertisement

Gomez Pushes Back on FCC License Threats
Anna M. Gomez
Anna M. Gomez
FCC Commissioner Anna M. Gomez is pushing back against recent threats from FCC Chairman Brendan Carr to revoke broadcast licenses over news coverage of the war with Iran, calling the warnings legally unfounded and potentially harmful to press freedom. In a statement released March 16, Gomez said the FCC More

Battleground Podcast Joins Nashville Network
Battleground Podcast
Battleground Podcast
Premiere Networks and Bobby Bones have announced that the "Battleground Podcast" has joined the Nashville Podcast Network, effective immediately. The weekly podcast focuses on professional wrestling, delivering coverage of major storylines, breaking news, and interviews with talent from organizations More

SuiteRadio Adds Rising Air Talent Kadie Daye
Kadie Daye
Kadie Daye
SuiteRadio has announced the addition of radio personality Kadie Daye to its programming lineup, expanding its roster of personality-driven content. Daye enters the network following a series of early career achievements, including five national collegiate broadcasting awards. She began her professional 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