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

AM/FM Radio Leads In-Car Listening Among EV Users
Edison Research at SSRS
Edison Research at SSRS
AM/FM radio continues to account for the largest share of in-car audio listening among Americans, including electric vehicle (EV) drivers and passengers, although its share is notably lower among EV users, according to new findings from Edison Research's Share of Ear study. The research, presented during More

RTDNA Survey Finds Modest Gains in Radio News Staffing
RTDNA
RTDNA
Radio newsroom staffing showed modest improvement in 2025, with the median number of full-time news employees returning to two after declining the previous year, according to the latest RTDNA/Newhouse School at Syracuse University Survey. The annual survey found that the average More

Podmerse Launches Podcast Sponsorship Database
Podmerse
Podmerse
Podmerse has launched a publicly available podcast sponsorship database designed to help podcasters identify potential advertisers and provide media buyers with information about where competing brands are placing their podcast advertising. The platform tracks more than 2 million More
Advertisement

Triton Digital Completes First AI-Driven Audio Ad Buy
Triton Digital
Triton Digital
Triton Digital has completed what it describes as the audio industry's first fully automated, agent-to-agent advertising transaction using its newly launched Seller Agent. The campaign was executed with Talpa Media, digital agency Draft Digital and advertiser Otrium. According to More

Brandon 'Scoop B' Robinson to Launch Media Network
Scoop B and Crossover Media Group
Scoop B and Crossover Media Group
Sports journalist and national basketball insider Brandon "Scoop B" Robinson has announced plans to launch a multimedia digital network in early 2027, featuring original audio and video programming focused on sports, entertainment, music and lifestyle culture. The More

Westwood One, Silverloch Set Election Day Coverage
Westwood One
Westwood One
Westwood One and Silverloch have announced special Election Day programming for Tuesday, November 3, featuring conservative commentators Dan Bongino, Vince Coglianese, Hayley Caronia and Shawn Farash across broadcast radio, podcasts and streaming platforms. The coverage will feature commentary and More

Return to Menu

Advertisement

Advertisement

Advertisement