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Policy & Law

Congress Weighs AM Radio Mandate Amid Push to Require Royalties for Artists

The AM Radio for Every Vehicle Act would require AM/FM in all new cars, but critics say it benefits broadcasters without addressing artist pay.

⚡ The Bottom Line

The two pieces of legislation represent a rare instance where the same Congress is considering both broadcast technology mandates and music industry compensation reform simultaneously. The AM Radio for Every Vehicle Act has passed the House, while the American Music Fairness Act has bipartisan co-sponsorship but has not received a floor vote in either chamber. Industry observers note that linki...

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Congress is considering legislation that would mandate AM radio capability in every new vehicle sold in the United States, but the proposal is drawing scrutiny over whether it adequately addresses compensation for the musicians whose recordings make radio broadcasts possible.

The AM Radio for Every Vehicle Act, which would require automakers to include AM band reception in all new cars, has sparked debate about the relationship between broadcasters and recording artists. The legislation passed the House in 2024 but stalled in the Senate, with opponents arguing it amounts to a government-mandated lifeline for the broadcast industry without corresponding obligations to performers.

Supporters of the legislation say preserving AM radio access is a matter of public safety and consumer expectation, particularly for listeners in rural areas who rely on terrestrial radio during emergencies when cell service may be unavailable.

What the Left Is Saying

Progressive Democrats and artist advocates have raised concerns that the AM Radio for Every Vehicle Act primarily benefits large media conglomerates without addressing what they characterize as an inequity in the music industry. Rep. Hakeem Jeffries (D-N.Y.), then-House Democratic leader, blocked the legislation from being included in a continuing funding resolution at the end of 2024, arguing that massive corporations should not profit off musicians unless those musicians are compensated for their work.

The American Music Fairness Act, introduced by Sen. Marsha Blackburn (R-Tenn.) and Rep. Darrell Issa (R-Calif.), has attracted Democratic support as a complementary measure that would require AM and FM broadcasters to pay performance royalties to recording artists. Artist advocacy groups including SoundExchange have argued that the U.S. is the only major democracy that does not require terrestrial radio to compensate performers, creating an asymmetry that disadvantages American artists relative to their international counterparts.

What the Right Is Saying

Conservatives and broadcast industry supporters argue that the AM Radio for Every Vehicle Act is about preserving a vital communications medium, not corporate welfare. They note that AM radio serves as a critical infrastructure component for emergency broadcasts, agricultural communications in rural areas, and news programming that reaches millions of Americans who do not subscribe to streaming services.

The American Music Fairness Act has drawn support from President Trump and conservative policy organizations, framing artist compensation as a matter of intellectual property rights rather than industry welfare. Supporters argue the legislation is narrowly tailored to protect small and community broadcasters, with annual fees as low as $10, while requiring large media conglomerates to pay their fair share. The bill has the support of over 300 recording artists across genres.

What the Numbers Show

AM and FM radio generates approximately $14 billion annually in advertising revenue, making it one of the largest broadcast media markets in the United States. Unlike streaming services, satellite radio, and internet radio platforms, terrestrial AM and FM broadcasters do not currently pay performance royalties to recording artists for airplay.

The United States remains the only democracy among major industrialized nations that does not require terrestrial radio broadcasters to pay performance royalties to recording artists. This status has resulted in foreign radio stations withholding hundreds of millions of dollars from American artists, who cannot collect royalties for international airplay under current U.S. law.

The American Music Fairness Act proposes a tiered fee structure, with small and community broadcasters paying annual fees starting at $10, while larger broadcast corporations would pay higher rates based on market size and listener reach. Industry analysts estimate the legislation could redirect hundreds of millions of dollars annually to recording artists if implemented.

The Bottom Line

The two pieces of legislation represent a rare instance where the same Congress is considering both broadcast technology mandates and music industry compensation reform simultaneously. The AM Radio for Every Vehicle Act has passed the House, while the American Music Fairness Act has bipartisan co-sponsorship but has not received a floor vote in either chamber.

Industry observers note that linking the two proposals may be politically necessary for both to advance, given opposition from some Democrats to supporting broadcast industry interests without artist protections and resistance from broadcasters themselves to any new royalty requirements. What remains unclear is whether leadership in either chamber will prioritize pairing the measures, or if they will proceed as separate legislative vehicles with uncertain timelines for consideration.

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