Sponsors (8)
The bill raises and protects pay for millions of federal contract workers—improving wages and enforcement—but does so at the cost of higher contractor labor bills, increased taxpayer procurement costs, and added compliance burdens that may reduce contractor competition or delay some procurements.
Low-wage employees on federal contracts (including many service and construction workers) will receive higher guaranteed pay because contracts must pay the Living Wages Act rate (rising to $25/hour in statute and/or the greater-of rule with Secretary determinations).
Wages set by the law will be indexed to CPI–W, preserving the real purchasing power of these higher wages over time for affected workers.
Construction workers on federal construction contracts gain a more uniform, higher minimum floor when the Living Wages rate exceeds local Davis-Bacon rates, improving pay and reducing reliance on public assistance for these workers.
Small businesses and other contractors bidding on federal contracts will face substantially higher labor costs, which can reduce competitiveness, compress profit margins, or force some firms out of the market for covered contracts.
Higher contractor labor costs are likely to increase the prices the government pays for goods and services awarded after enactment, raising taxpayer expenditures or reducing the scope/number of procurements funded.
Some contractors may respond by reducing hiring, cutting subcontracting, or shifting work away from federal contracts, causing short-term job losses or fewer opportunities for affected contract workers.
Based on analysis of 5 sections of legislative text.
Requires new federal contracts to pay contractor employees at least $17/hour rising to $25/hour over five years, then indexed annually to CPI–W; raises Davis‑Bacon and procurement wage floors accordingly.
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 companies that hold new federal contracts to pay higher, tiered minimum wages to their employees: starting at $17.00/hour in year one and rising each year to $19, $21, $23, and $25 in the next four years, then adjusted annually for inflation using the CPI–W. Sets a phased schedule for tipped workers, updates Davis‑Bacon prevailing wage rules and procurement wage baseline to use the higher contractor wage, and gives contracting officers enforcement tools including contract termination and double‑damages liability for unpaid wages.