The U.S. senate just proposed a bill to raise the federal minimum wage to $25 per hour.

Senate Democrats introduced a significant new bill on Thursday that aims to raise the federal minimum wage to $25 per hour over the next five years. This legislative move seeks to address the growing gap between worker pay and the rising cost of living across the United States. The proposal aligns with a similar bill recently put forward by House Democrats, signaling a unified party focus on a $25 wage floor.

The current federal minimum wage has remained stagnant at $7.25 per hour for 17 years. Supporters of the new bill argue that the existing rate no longer provides enough support for full-time workers to cover their basic monthly bills. Senator Chris Murphy, a lead sponsor of the legislation, stated during a press conference that anyone working full-time in this country deserves to make a dignified wage.

This proposal represents a shift in strategy for progressives who previously championed a $15 hourly rate through the Fight for $15 campaign. Because inflation has eroded local purchasing power, many lawmakers now believe a higher threshold is necessary to support American families. The bill also includes plans to eliminate the tipped minimum wage, which currently impacts restaurant servers and other workers who rely on gratuities.

The legislation outlines a gradual phase-in period to help businesses adjust to the new requirements. Large companies with at least 500 employees or $1 billion in annual revenue would have until 2031 to reach the $25 mark. Smaller employers would receive more time to implement the changes, with a final deadline set for the year 2038. After these periods, the wage would automatically adjust based on the national median hourly pay.

Data from the Economic Policy Institute suggests this change would affect approximately 66 million workers who currently earn less than $25 per hour. While the bill faces Significant opposition in a Republican-controlled Congress, it serves as a cornerstone of a broader affordability agenda for Democrats heading into the 2026 midterm elections. Other priorities in this package include capping childcare costs and establishing government-run programs for generic drugs.

Source: https://www.huffpost.com/entry/senate-democrats-minimum-wage-25_n_6a3d512de4b03bf319836c2b