Legislation toincrease the federal minimum wageto a living wage of $25 per hour has been introduced by acoalition of Democratsciting the need to address the affordability crisis.
TheLiving Wage for All Actwould increase the current federal minimum wage of $7.25 per hour to $25 per hour - incrementally over the next five years for employers with more than 500 workers and giving smaller businesses a twelve year timeline. It would also build in automatic adjustments to keep up with rising costs.
“Housing, gas, and grocery costs have all surged, yet the federal minimum wage hasn’t been raised since 2009," said Rep. Analilia Mejia (NJ-11) in apress release. "This is unacceptable. No one working full time should be struggling to survive. We need an economy that reflects the realities of 2026, not one stuck over a decade ago."
The federal minimum wage has remained at $7.25 since 2009. Albeit more than half the country have raised theirs since. States such as Washington, Connecticut, California, New York and Rhode Island are among those with the highest minimum wages exceeding $16 per hour, while some local/regional areas have exceeded their state minimums, such as West Hollywood, CA at $19.65 per hour, or Flagstaff, AZ at $18.35 per hour or Denver, CO at $18.81.
This new legislation reflects a national push with many states already leading campaigns to push their own state minimum wages to $25 per hour or higher.
“Growing up, I saw my immigrant parents and my neighbors working multiple minimum wage jobs just to survive," said Congresswoman Delia C. Ramirez (IL-03). "Today, companies are reporting record-high earnings while working people struggle to survive. Minimum wage is not a living wage. That’s not right. If we want to address the affordability crisis, we must also address the wage crisis.”
Washington, D.C. holds the highest minimum wage in the US at $17.95, while 20 statesincluding Pennsylvania, remain at the $7.25 per hour wage.
Another sponsor of the bill, Congressman Jesús “Chuy” García (IL-04) said the need for a living wage couldn't be any clearer, "The gap between the wealthy and everyone else keeps widening. Corporate profits are at a record high, and bosses are actively cutting their workforces, undermining organizing efforts, and trying to replace labor entirely. Meanwhile, working families are struggling to pay their rent, buy groceries, and go to the doctor. It’s past time that workers are paid what they deserve.”
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Here's what's in the legislation.
What is the Living Wage for All Act?
According toHouse bill H.R. 8555, theLiving Wage for All Actaims to place the "Federal minimum wage on a durable path toward a living wage aligned with the national median wage, to require large, highly profitable corporations to lead the transition, to end all subminimum wages, and for other purposes."
The legislation would raise the federal minimum wage from the current $7.25 to $25 per hour through a gradual, phased approach wherein, larger employers with more than 500 workers or annual gross revenues of $1,000,000,000 would incrementally raise the wage to $25 per hour by 2031:
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$12 per hour beginning Jan. 1, 2026
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$15 per hour beginning Jan. 1, 2027
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$18 per hour beginning Jan. 1, 2028
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$20 per hour beginning Jan. 1, 2029
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$22.50 per hour beginning Jan. 1, 2030
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$25 per hour beginning Jan. 1, 2031
All other smaller businesses, would have until 2038 to gradually raise their minimum wages to the $25 per hour.
The Living Wage for All Act would further establish a standard to keep the minimum wage aligned with growth, "as the economy grows and wages rise, the minimum wage would rise with it." It would also eliminate subminimum wages, including tipped workers, youth workers and workers with disabilities.
Congressmembers Jesús “Chuy” García (IL-04),Delia C. Ramirez (IL-03), Lateefah Simon (CA-12) and Analilia Mejia (NJ-11) introduced the Living Wage For ALL bill last week, leading a coalition made up of multiple cosponsors from across the country, and over 100 labor, community, civil rights and economic justice organizations advocating for a living wage for all workers in the US.
The bill was introduced on April 28, and has not yet been brought up for a vote.
Maria Francis is a Pennsylvania-based journalist covering trending and breaking topics across the Mid-Atlantic and Northeast regions for USA Today Network. Reach her at mfrancis@usatodayco.com.
This article originally appeared on NorthJersey.com:What is federal minimum wage? $25 per hour, Living Wage for All Act
