Sponsors
The bill would substantially raise and then index the federal minimum wage to improve pay and housing affordability for low‑wage workers, while imposing higher labor costs that could raise prices and strain small employers—especially in lower‑cost areas.
Low-income and minimum-wage workers: scheduled increases to a $26.59 federal minimum by 2030 and continued indexing thereafter will raise wages and boost earnings for millions of low-wage workers.
Renters and working families: aligning the wage floor so that two full-time workers exceed the national housing wage would improve ability to afford a one‑bedroom (keeping housing costs below 30% of income) and reduce housing-related hardship.
Low- and middle-income households: indexing the minimum wage to a formula tied to 140% of the supplemental poverty threshold for renter families (with periodic reviews) creates predictable, inflation‑responsive increases that help wages keep pace with living costs over time.
Small businesses and employers: higher mandated minimum wages and indexing will raise labor costs, which could lead some employers to reduce hiring, cut worker hours, raise automation, or close, affecting employment opportunities.
Consumers, taxpayers, and some low-income workers: higher labor costs may be passed into higher prices for goods and services and increase fiscal pressures on government programs, which can partially offset workers' pay gains and raise costs for households.
Rural and low-cost communities: a higher federal wage floor may exceed local market wages in lower-cost areas, putting competitive pressure on small employers and potentially reducing employment in those regions.
Based on analysis of 3 sections of legislative text.
Phases the federal minimum wage to $26.59/hr by 2030 and, starting 2031, requires the Secretary of Labor every 7 years to set the wage equal to 140% of the BLS supplemental poverty threshold for a renting family of four.
Introduced January 3, 2025 by Al Green · Last progress January 3, 2025
Phases the federal minimum wage upward in annual steps from 2026 through 2030 to reach $26.59 per hour, and then requires the Secretary of Labor, starting in 2031 and every seven years thereafter, to set the next seven-year minimum-wage level using a formula tied to 140% of the Bureau of Labor Statistics Supplemental Poverty Threshold for a renter family of four. It also expresses Congress’s view that minimum wages should be indexed to inflation when inflation rises substantially and that two full-time minimum-wage workers should earn at least the national housing wage, while preserving the right of governments to set higher wages.