Sponsors (9)
The bill raises and indexes pay and strengthens enforcement for many federal contract workers—improving wages and reducing reliance on assistance—while imposing higher labor and compliance costs that could increase taxpayer spending, strain small contractors, and create transitional implementation burdens.
Low-wage federal contract workers — including tipped employees and construction workers on new contracts — will see substantially higher minimum pay (a $25/hour floor and higher base for tipped workers, plus pay that is the greater of the Living Wages rate or applicable prevailing wage).
Federal contract wages will be indexed to CPI–W so workers' real purchasing power is more likely to be preserved over time.
Workers on covered federal contracts are likely to have improved living standards and reduced reliance on public assistance because of the higher, more consistent wage floor.
Small and other contracting firms face substantially higher labor costs that can reduce profit margins and competitiveness, potentially forcing some firms out of bidding or contracting with the government.
Higher contractor labor costs are likely to increase what agencies pay for goods and services, raising taxpayer expenditures or reducing the amount/scope of procurement that can be funded.
Some contractors may reduce hiring, subcontracting, or shift work away from federal contracts, which could cause job losses or fewer opportunities for some contract workers in the short term.
Based on analysis of 5 sections of legislative text.
Sets a phased contractor minimum wage rising from $17 to $25/hr over five years, then CPI–W updates, and makes that floor apply to procurement and Davis‑Bacon where higher.
Official title: To establish a minimum wage for all Federal contractors, and for other purposes.
Introduced July 2, 2026 by Alma Adams · Last progress July 2, 2026
Requires federal contractors and subcontractors to pay rising, tiered minimum wages that reach $25.00/hour after five years and then adjust annually for inflation using the CPI–W. Raises the minimum subminimum/tipped wage on a step-up schedule, strengthens enforcement with contract termination and double-damages remedies, and updates federal procurement and Davis-Bacon wage standards to use the new contractor wage floor where higher.