Mandatory AM Radio Bill Dropped From Federal Budget Resolution

Mandatory AM Radio Bill Dropped From Federal Budget Resolution

By Marcus Bennett

December 21, 2024 at 05:50 AM

AM radio legislation requiring receivers in new vehicles has been excluded from the federal government funding bill, following opposition from music industry advocates who demanded fair artist compensation through the American Music Fairness Act (AMFA).

The National Association of Broadcasters pushed for the AM in Every Vehicle Act, spending over $3 million in lobbying efforts. However, the musicFirst Coalition and artists opposed passing this legislation without simultaneously addressing royalty payments for AM/FM radio play.

Five people standing at news conference

Five people standing at news conference

Key points about the situation:

  • The United States remains one of few industrialized nations not requiring radio stations to pay artist royalties
  • AM radio plays over 240 million songs annually without compensating artists
  • Radio companies earned more than $15 billion in ad revenue while not paying artists
  • AM/FM radio is the only music platform legally playing music without artist compensation

Notable artists including David Byrne, Randy Travis, MC Lyte, Darryl "DMC" McDaniels, and Melle Mel advocated on Capitol Hill against passing the AM bill without AMFA.

"This is a major win for all music artists across the country," says Darryl McDaniels. "I'm grateful that congressional leadership stood up for the community of artists at this critical moment."

SoundExchange CEO Michael Huppe emphasized that Congress should not mandate radio requirements without ensuring appropriate artist royalties, noting that many musicians must work additional jobs to survive without fair compensation.

The American Music Fairness Act currently has strong bipartisan support in both the House and Senate, aiming to establish fair compensation practices aligned with other developed nations.

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