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.

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