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

Howard Stern Fans Threaten SiriusXM Boycott
Howard Stern
Howard Stern
Howard Stern is facing growing backlash from longtime listeners after reports that The Howard Stern Show will reduce its live schedule to one new three-hour episode per week this fall, prompting some fans to say they are canceling their SiriusXM subscriptions. According to media reports, including The More

Surfer Network Names Kellogg SVP of Strategy
Matt Kellogg
Matt Kellogg
Surfer Network has appointed digital audio executive Matt Kellogg as Senior Vice President of North American Sales Strategy, bolstering its leadership team as the company expands its streaming, podcasting and audio advertising business. In the newly created role, Kellogg will oversee strategic sales More

Texas Radio Hall Names 2026 Induction Nominees
Texas Radio Hall of Fame (TRHOF)
Texas Radio Hall of Fame (TRHOF)
The Texas Radio Hall of Fame (TRHOF) has announced the 50 nominees for its 2026 induction class, with voting now open to eligible Hall of Fame members through August 10. The final ballot was selected from more than 160 broadcast professionals with ties to Texas radio who were nominated for consideration. More
Advertisement

Portland Radio Legend Craig Walker Dies at 80
Craig Walker
Craig Walker
Veteran Portland radio and television personality Craig Walker, whose warm on-air style made him one of Oregon's most recognizable broadcasters, died peacefully at his home on July 22. He was 80. Walker's death was announced by longtime friend and radio partner John Erickson, who praised his decades-long More

WYPC Flips to Seaboard's Great Oldies Format
WYPC/Wellston-Jackson, OH
WYPC/Wellston-Jackson, OH
Total Media has flipped WYPC in Wellston-Jackson, OH, to Oldies using Seaboard Networks' "Good Time, Great Oldies" programming, marking the company's second format conversion with Seaboard in as many weeks. The move follows Total Media's recent launch of "Southern Ohio Gold" on More

Femi Ayanbadejo Joins Afternoons at 105.7 The Fan
Femi Ayanbadejo
Femi Ayanbadejo
WJZ-FM (105.7 The Fan) in Baltimore is revamping its afternoon lineup with the launch of "The Final Drive," a new weekday sports talk show featuring former Baltimore Ravens linebacker Femi Ayanbadejo. Beginning July 29, Ayanbadejo will join Ken Weinman and Tim Barbalace as co-hosts, airing weekdays from 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