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CBO Report Lowers Cost Estimate for AM Radio in EVs

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  Published in Automotive and Transportation on Wednesday, March 18th 2026 at 9:53 GMT by Radio Ink
      Locale: UNITED STATES

Washington D.C. - March 18th, 2026 - The debate surrounding a potential federal mandate requiring all electric vehicles (EVs) to include AM radio functionality continues, with a new report from the Congressional Budget Office (CBO) adding another layer to the discussion. While automakers remain hesitant, the CBO now estimates the cost of compliance to be significantly lower than previously thought, potentially easing some of the industry's concerns.

The CBO's revised report, released this week following a specific request from Congress, pegs the total cost to automakers of including AM radio in EVs at approximately $169 million over the next ten years. This is a substantial reduction from the agency's initial estimate of $274 million earlier in 2026. The revised figures focus primarily on the cost of installing the necessary AM radio receivers in EVs.

This issue arose due to the fact that many EV manufacturers initially began excluding AM radio from their vehicles, citing concerns about electromagnetic interference from the electric powertrain and a perceived lack of consumer demand. Broadcasters, however, vehemently objected, arguing that AM radio remains a critical source of local news, emergency alerts, and vital community information, particularly during times of crisis. They argued that excluding AM radio from EVs would disproportionately impact vulnerable populations who rely on it as their primary news source.

The core of the argument hinges on public safety. AM radio's long range and ability to penetrate buildings and tunnels make it a uniquely reliable means of disseminating emergency broadcasts, especially in situations where cell service is unavailable or overloaded. This capability is seen as particularly important as extreme weather events become more frequent and severe due to climate change.

Automakers, while acknowledging the importance of emergency communications, have countered that AM radio listenership is declining and that alternative communication methods, such as smartphone apps and internet radio, are readily available. They also point to the added complexity and potential interference issues that integrating AM radio into EVs presents. Adding to their concerns are the costs associated with redesigning electrical systems and conducting necessary testing to mitigate interference.

The CBO report attempts to address these concerns, stating that the cost to automakers would be "small" and "largely offset by consumers' willingness to pay for a vehicle with AM radio." This suggests the CBO believes consumers value the availability of AM radio, even if they don't regularly listen to it, and are willing to absorb a small portion of the cost in their vehicle purchase. However, quantifying this "willingness to pay" remains a challenge.

Industry analysts suggest the CBO's lower estimate is likely due to refined modeling that better accounts for economies of scale as EV production ramps up and potentially, the development of more cost-effective shielding and filtering technologies to minimize interference. Several automakers are reportedly exploring software-defined radio solutions, which could allow them to integrate AM functionality without significant hardware changes.

Despite the CBO's revised figures, the debate isn't likely to subside soon. The 'AM Radio for EVERY Vehicle Act' is currently stalled in the House of Representatives, with some lawmakers calling for further study and others advocating for a more comprehensive approach to ensuring access to emergency information in all vehicles, regardless of powertrain. There is also discussion about incentivizing automakers to include AM radio rather than mandating it.

The National Association of Broadcasters (NAB) released a statement praising the CBO's report, stating it "demonstrates that preserving access to local AM radio is achievable without imposing significant costs on automakers." They reiterated their commitment to working with Congress and the industry to find a solution that protects public safety and keeps communities informed.

Looking ahead, the future of AM radio in EVs remains uncertain. The CBO's report provides a more optimistic outlook on cost, but the underlying concerns about interference, consumer demand, and the rapidly evolving landscape of in-vehicle entertainment and information systems still need to be addressed. A compromise that balances the needs of broadcasters, automakers, and consumers appears to be the most likely path forward.