The Congressional Budget Office is reaffirming that a federal mandate requiring AM radio in all new vehicles would come with only modest costs, while having virtually no impact on the federal deficit.
In a newly released cost estimate for the AM Radio for Every Vehicle Act (H.R.979/S. 315), CBO says implementing the legislation would cost the federal government about $1 million over the 2026-2031 period, primarily tied to rulemaking by the Department of Transportation and a required study by the Government Accountability Office.
Beyond that, the budgetary impact is minimal. CBO projects no meaningful change in direct spending or deficits, and says any revenue generated from civil penalties on noncompliant automakers would total less than $500,000 over a decade, reflecting what it expects will be a small number of violations. The new estimate aligns closely with CBO’s earlier analysis of the Senate version of the bill released last June.
AM Radio for Every Vehicle Act would direct the U.S. Department of Transportation to require AM radio capability — analog or digital — in all new passenger vehicles. And carmakers would be prohibited from charging extra for AM.
The requirement would primarily affect electric vehicle manufacturers that have removed or plan to remove AM radios. Based on EV sales trends, CBO estimates between 2 million and 2.5 million vehicles annually would need to be updated, largely through software changes and minor hardware adjustments since most already include FM capability.
“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,” the report says. “As a result of the legislation, some manufacturers may elect to make other modifications to the vehicle as well to improve audio quality.”
The analysis reinforces earlier findings that the burden on the auto industry would be fairly limited. While the bill creates a private-sector mandate, CBO estimates compliance costs would total “several millions of dollars each year” — well below the threshold that would trigger significant regulatory concerns under federal law.
The bill would direct the Department of Transportation to issue rules within one year requiring AM radio access in all passenger vehicles sold in the U.S., with the mandate sunsetting after eight years. It would also require a GAO study on AM radio’s role in delivering emergency alerts and ongoing federal reporting to Congress every five years.
The AM Radio for Every Vehicle Act has broad, bipartisan support in Congress where final passage remains pending in both the House and Senate. The list of co-sponsors in the House now totals 318 members, with 61 Senators also onboard.
The National Association of Broadcasters has said that the biggest challenge in 2026 for the industry is creating momentum to get lawmakers to make its passage a priority. Historically, legislation with lots of support would be attached as a rider on larger bills, such as appropriation bills. But that practice has fallen out of favor, meaning both chambers will likely need to take up the AM radio proposal as standalone measures.
