AM Radio Mandate Costs: Still Minimal For Automakers

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The Congressional Budget Office has released its cost estimate for the AM Radio for Every Vehicle Act of 2025. And, despite automaker claims that adding electromagnetic shielding to preserve AM reception would come at a high cost, the CBO has disagreed — for a third time.


The proposed legislation, officially known as S.315 in the current Congress, would establish a mandate that requires no-cost AM radio access in all passenger vehicles sold, imported, or manufactured in the U.S.

The legislation, aimed at preserving AM radio’s role in emergency communications, would require the Department of Transportation to implement the rule within one year of enactment and review its impact every five years. The mandate would expire after 10 years.

The bill also directs the Government Accountability Office to study AM radio’s role in the Integrated Public Alert and Warning System and report its findings within 18 months.

The CBO estimates that implementing S.315 would cost the Department of Transportation and GAO about $1 million over five years, with spending subject to available appropriations. The legislation would also allow DOT to impose civil penalties on noncompliant manufacturers, but the CBO projects that such revenues would not exceed $500,000 over a decade due to limited violations.

The AM Act would primarily impact electric vehicle manufacturers, many of whom have already removed or announced plans to phase out AM radio. The bill would require automakers to restore AM functionality at no cost if requested by vehicle owners before the rule takes effect. The CBO projects that updating 2 to 2.5 million EVs per year would lead to minor increases in production costs but remain well below federal cost thresholds for private-sector mandates.

The full estimate was reviewed by CBO Deputy Director of Budget Analysis H. Samuel Papenfuss and prepared by Willow Latham-Proença and Brandon Lever under the direction of CBO Director Phillip Swagel. Previous matching estimates were conducted in 2023 and 2024.

Meanwhile, the AM Radio for Every Vehicle Act now has the support of half of the upper body of Congress, reaching 50 co-sponsors in the Senate ahead of a floor vote. The latest to endorse the bill are John Boozman (R-Ark.), Jacky Rosen (D-Nev.), and Catherine Cortez Masto (D-Nev).

The House version of the bill must be approved by the House Energy and Commerce Committee before it is eligible to be voted on.

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