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

Jeff McCartney Joins Cumulus Salt Lake City Duo
Jeff McCartney
Jeff McCartney
Cumulus Media has named Jeff McCartney as Operations Manager and Program Director for its Salt Lake City outlets KBER-FM (KBER 101) and KENZ-FM (Power 94.9/101.9). He brings more than 30 years of experience in radio programming, brand development, and audience growth to the role. McCartney joins Cumulus More

Brian McGhee Named CMG Jacksonville Market Manager
Brian McGhee
Brian McGhee
Cox Media Group (CMG) has appointed Brian McGhee as Vice President and Market Manager for its Jacksonville radio operations, effective immediately. McGhee succeeds Jimmy Farrell, who recently transitioned to the role of Vice President and Market Manager for CMG Miami Radio. McGhee joins CMG with more More

Bill Fox Named OM for Cumulus Toledo-Monroe
Bill Fox
Bill Fox
Cumulus Media has appointed veteran radio programmer and air personality Bill Fox as Operations Manager for its Toledo, OH-Monroe, MI cluster. Fox will also serve as PD for Country WKKO-FM (K100) and join Classic Hits station 93.5 WRQN as a morning co-host. Fox arrives at Cumulus Toledo-Monroe with More
Advertisement

Salem Media's Allen Power to Retire After 50 Years
Allen Power
Allen Power
Salem Media has announced that Allen Power, President of Broadcast Media, will retire on September 30, concluding a broadcasting career that spans five decades. Following his retirement, Power will remain with the company in a Senior Advisor role. The announcement coincides with the 50th anniversary of More

Beasley Urges FCC to Scrap Radio Ownership Caps
Caroline Beasley
Caroline Beasley
Beasley Media Group is calling on the Federal Communications Commission to eliminate local radio ownership caps, arguing that decades-old regulations are hindering broadcasters' ability to compete in today's media landscape. In an ex parte filing submitted to the FCC, Beasley Media Group CEO Caroline More

Study: AM/FM Radio Dominates Among GM Drivers
Cumulus Media | Westwood One
Cumulus Media | Westwood One
A new analysis from Cumulus Media and Westwood One's Audio Active Group finds that AM/FM radio remains the dominant audio platform among General Motors drivers, highlighting its value for automakers and dealers seeking to reach both loyal customers and owners of competing brands. In this week's blog 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