CBO Estimates Low Cost Impact for AM Radio for Every Vehicle Act

The Congressional Budget Office (CBO) has released a new cost estimate for the "AM Radio for Every Vehicle Act of 2025," indicating that the proposed mandate to ensure AM radio availability in passenger vehicles would have a minimal financial impact, despite opposition from some automakers, particularly in the electric vehicle (EV) sector.

Key findings:

• The legislation would require the Department of Transportation (DOT) to establish rules ensuring AM broadcast stations are accessible in all new passenger vehicles (up to 12 passengers, excluding motorcycles) sold or imported in the U.S.
• 
  Contrary to automaker claims of high costs for electromagnetic shielding or other modifications, the CBO estimates annual implementation costs in the "several millions of dollars" range, significantly lower than industry projections. This covers updates to radio equipment in approximately 2 to 2.5 million vehicles yearly, mainly EVs that have eliminated AM radio compatibility.
• Direct federal spending to enforce the mandate is projected at about $1 million over five years, subject to appropriation, with civil penalties for non-compliance expected to yield less than $500,000 over ten years.

The bill includes a Government Accountability Office (GAO) study on AM radio's role in emergency communications, highlighting public safety benefits emphasized by supporters.

The legislation would preempt state and local regulations on AM radio access in vehicles, with the CBO noting no significant impact on state or local government revenues.

This marks the third time the CBO has refuted automaker claims of excessive costs, reinforcing the federal perspective on the economic viability of maintaining AM radio access as the bill progresses through Congress.