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

Cumulus Media Adopts Xperi's AutoStage Analytics
Cumulus Media and Xperi
Cumulus Media and Xperi
Cumulus Media has become the first commercial broadcaster to license Xperi's AutoStage Broadcaster Portal Premium, a new audience intelligence platform that provides near-census-level insights into in-car radio listening. The agreement makes Cumulus the launch partner for the next-generation analytics More

Connoisseur Media Expands Weekend Syndication Lineup
Robby's Top 20 Countdown and She's Country
Robby's Top 20 Countdown and She's Country
Connoisseur Media is expanding its syndicated programming lineup through its partnership with Compass Media Networks, adding two original weekend shows to its national distribution portfolio: "Robby's Top 20 Countdown" and "She's Country." The move builds on the companies' existing relationship, which More

Nielsen: Audio Still Dominates Podcast Consumption
Nielsen
Nielsen
Audio remains the primary way consumers engage with podcasts despite the rapid growth of video-enabled platforms, according to Nielsen's new report, Lean In vs. Lean Back: Profiling the Podcast Listener and Viewer. The report finds that 90% of monthly podcast consumers listen to More
Advertisement

Report: Howard Stern Cuts Staff, Show Schedule
Howard Stern
Howard Stern
Howard Stern has reportedly laid off about a dozen staff members as he prepares to reduce his SiriusXM schedule to one new show per week beginning after Labor Day. According to a report by Page Six, staffers were notified during a Zoom meeting on Monday that the longtime host will scale back from his More

Infotainment Systems Fuel Digital Audio Growth
Edison Research at SSRS
Edison Research at SSRS
The growing adoption of in-car infotainment systems is accelerating digital audio listening, according to new data from Edison Research's Share of Ear study. The report shows ownership of infotainment platforms such as Android Auto and Apple CarPlay has more than doubled since 2019, rising from 18% of More

Beasley Promotes Roldan to Tech Leadership Role
Jose Alberto Roldan
Jose Alberto Roldan
Beasley Media Group has promoted Jose Alberto Roldan to the newly created position of Head of Technology and Infrastructure. In the role, Roldan will oversee the company's technology strategy, information technology operations, infrastructure, cybersecurity and enterprise systems while continuing to lead 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