In line with the revised AM Radio for Every Vehicle Act of 2024, led by Representatives Gus Bilirakis (R-FL) and Frank Pallone (D-NJ), the Congressional Budget Office released a second cost analysis for the bill one year after the original, and it still bodes well for radio.
The CBO’s analysis notes that H.R. 8449 is similar to S. 1669, a Senate version of the bill, and the estimated budgetary effects are identical.
According to the original CBO, the proposal would primarily impact electric vehicle manufacturers. Using sales data, the agency estimates that 2.5 to 3 million EVs annually would need updates to media equipment and software. While the cost of these updates is considered minimal, the CBO estimates the total annual cost for automakers would be in the low millions – far below the $200 million threshold for private-sector mandates set by the US government.
As for government spending, the Department of Transportation would be tasked with issuing the rule within one year of the bill’s enactment, along with conducting periodic reviews on its effects. The legislation would also require the Government Accountability Office to study the role of AM radio in emergency alert dissemination through the Integrated Public Alert and Warning System.
The study, due within 30 months of the bill’s passage, would evaluate AM radio’s effectiveness and the potential costs to consumers of mandating the technology.
According to the CBO, implementing H.R. 8449 would cost DOT and GAO a combined $1 million over the 2025-2029 period, assuming the availability of appropriated funds. Additionally, the bill allows DOT to impose civil penalties on automakers who fail to comply with the mandate.
However, the CBO estimates that revenues generated from such penalties would total less than $500,000 over the 2025-2034 period due to a likely low number of violations.
While both the Senate and House versions of the bill remain pending, bipartisan support continues to grow. The NAB, state broadcast associations, legislators, and tens of thousands of listeners continue to call on Congress to act swiftly, emphasizing the importance of AM radio as a free and reliable platform for emergency communications and public safety.
Help ensure that Americans retain access to a vital lifeline in times of crisis as automakers try to remove it. Contact your members of Congress by texting AM to 52886, urging them to support legislation that ensures AM radio remains in cars.
If your station is not running the NAB PSAs asking your listeners to reach out to their representatives, get them here.
