Sponsors
The bill substantially raises and then indexes the federal minimum to a living-wage-based formula—boosting incomes and housing affordability for many low-wage workers—at the cost of higher labor expenses that could raise prices, reduce hiring (especially for entry-level workers), and create fiscal and administrative strains for businesses and governments.
Low-wage workers (including many renters and families) will see hourly pay rise to about $26.59 by Jan 1, 2030 and then be indexed to a poverty-based formula, substantially increasing household incomes and purchasing power.
Renting families and other low-income households are less likely to spend over 30% of income on housing as wages move toward a living-wage benchmark, improving housing affordability for many renters.
Some families will reduce reliance on means-tested programs as higher wages push incomes toward 140% of the renter supplemental poverty threshold, lowering demand for government assistance for some households.
Small businesses and other employers will face substantially higher labor costs, which could lead them to raise consumer prices, cut hours, lay off workers, or accelerate automation.
Entry-level and low-skill job opportunities—especially for young adults and inexperienced workers—may decline if employers reduce hiring or replace roles with automation.
Indexing wages to a renter-family poverty threshold targets a specific household type and may misalign with other household compositions or regional cost differences, producing unfair or uneven outcomes.
Based on analysis of 3 sections of legislative text.
Introduced January 3, 2025 by Al Green · Last progress January 3, 2025
Sets a schedule of federal minimum-wage increases from 2026 through 2030, raising the wage to $26.59 per hour by January 1, 2030, and then requires the Labor Secretary to reset the statutory minimum every seven years based on a formula tied to 140% of the Supplemental Poverty Threshold for a renting family of four. The Secretary must publish each seven-year determination and may not reduce the statutory minimum below the current rate if the formula would produce a lower amount.