AM Radio Bill: Minimal Cost to Government and Auto Industry

As we go to press, the AM Radio for Every Vehicle Act, H.R. 979, has 317 cosponsors.  This is more than enough to pass this legislation.  At this point, the bill has not been placed on the House floor for a vote.  

In the meantime, the Congressional Budget Office (CBS) reviewed the legislation. It analyzed both the costs to the government as well as the auto industry.  With respect to the costs to the government for implementing the bill, the CBS stated:

“Using information on the cost of issuing similar rules and reports, CBO estimates that implementing the bill would cost DOT and GAO a total of $1 million over the 2026-2031 period. Any related spending would be subject to the availability of appropriated funds.”

Of course, the auto manufacturers have asserted that the cost to them would be significant.  Again, CBO industry demonstrated that the costs would be minimal.

“Based on sales data for EVs, the legislation would require manufacturers to update radio equipment in about 2 to 2.5 million vehicles each year. Since most EVs are already equipped with FM radio, this would likely result in a small increase in production costs to update the media system software and modify other radio components. CBO estimates the total cost of the mandate would be several millions of dollars each year the requirement is in effect and would not exceed the annual threshold established in UMRA for private-sector mandates ($214 million in 2026, adjusted annually for inflation).”

Bottom line, the auto industry’s concerns about the costs of keeping AM radio in vehicles has been overstated significantly.  The time has come to move this legislation forward.

You can access the CBO’s analysis here.