Despite some automakers’ assertions that the adoption of the AM Radio for Every Vehicle Act (S. 315) would lead to crippling costs for vehicle manufacturers, for the third year in a row, the U.S. Congressional Budget Office says that is not the case — at least not in terms of the amount of government funds needed to carry out the bill.
In a newly-released cost estimate, CBO said implementing the AM bill would cost the Department of Transportation (DOT) and Government Accountability Office (GAO) a total of $1 million over the next five years (2025–2030). Previous matching estimates from the CBO were conducted in 2023 and 2024.
Automakers, however, are more concerned about the potential direct cost to them. In 2023, the Center for Automotive Research released an in-depth study evaluating the “cost of mitigating electromagnetic interference,” which is a known pain point for electric vehicle manufacturers as the bill is considered. At the time of publication, CAR said adopting the bill would cost EV automakers $3.8 billion by 2030, saying “even if the material costs are low, the intangible costs of EMI mitigation are substantial.”
While CBO estimates that 2–2.5 million EVs would indeed be affected by the proposed legislation, it asserts the bill would only result in “a small increase in production costs to update the media system software and modify other radio components,” and would not exceed the federal cost thresholds for private-sector mandates ($206 million in 2025, adjusted annually for inflation).
The office estimated the total cost of the mandate on automakers would be several millions of dollars each year the requirement is in effect.
The legislation would also allow the DOT to impose civil penalties on noncompliant manufacturers, but the CBO projects that such revenues would not exceed $500,000 over the next 10 years “because the number of violations would probably be small.”
If adopted, the AM Radio for Every Vehicle Act would direct the DOT to issue a rule requiring that AM stations be accessible in all passenger motor vehicles imported into, shipped within or manufactured and sold within the United States. The bill would require DOT to issue the rule within one year of enactment and report to the Congress at least every five years on its effects. The rule would sunset 10 years.
Additionally, the legislation would require the GAO to report on the role AM radio plays in disseminating emergency alerts in passenger vehicles through the Integrated Public Alert and Warning System.
Earlier this month, the Senate Committee on Commerce, Science and Transportation passed the AM Radio for Every Vehicle Act, paving the way for a full Senate vote. The legislation was also reintroduced in the house.
Previously passed by the Senate Commerce Committee in July 2023 and the House Energy and Commerce Committee in September 2024, many legislators have expressed support for the bill. Yet backers could not get it across the finish line at the end of the recent Congress in December.
In a divisive political climate, where the media landscape is being more closely scrutinized under a new administration, this is one of the few bills that can claim bipartisan support from both the FCC and Congress.
