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Congress·In Committee·11 months ago

House Democrats Push Raise the Wage Act to Hike Federal Minimum to $17 Over 5 Years

Also known as: Raise the Wage Act of 2025

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Mixed Impacts(8)
Small Business Owner
Neutral
Farmer Rancher
Neutral
Housing Assistance
Neutral
Child Tax Credit
Neutral
Renter
Neutral
Disability Benefits
Neutral
Cognitive Developmental
Neutral
Mental Health
Neutral
Positive Impacts(2)
Gig Worker
Helps
Student
Helps

Key Points

  • Raises the federal minimum wage in steps: $9.50 at start, then $11.00, $12.50, $14.00, $15.50, and $17.00 over 5 years.
  • After year 6, the minimum wage would increase automatically each year based on how the typical worker’s hourly pay changes, rounded up to the nearest 5 cents.
  • Gradually raises the tipped worker base cash wage from $6.00 up to $17.00, then ends the separate tipped wage so tipped workers must be paid the full minimum wage.
  • Raises the “training wage” for newly hired workers under 20 from $6.00, increases it yearly, then ends that separate lower wage.
  • Phases out special certificates that allow paying some workers with disabilities less than the minimum wage, and blocks new certificates right away.
Labor EmploymentEconomyDisability Rights

Milestones

2 milestones2 actions
Apr 8, 2025House

Referred to the House Committee on Education and Workforce.

Apr 8, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

First day of the third month after the President signs the bill into law

Regular federal minimum wage rises to $9.50/hour.

If your job is covered by federal minimum wage rules and you make less than $9.50, your hourly pay would have to increase to at least $9.50.

Same start date as the law’s general effective date

Tipped cash wage minimum rises to $6.00/hour; workers must be told they have the right to keep their tips.

Tipped workers would get a higher guaranteed base paycheck and clearer protection that tips belong to the worker.

On the date the bill becomes law

No new special wage certificates for paying workers with disabilities below minimum wage can be issued.

Employers not already in the 14(c) system could not newly start paying subminimum wages under a new certificate.

1 year after the law’s general effective date

Year 1 increases: regular minimum wage to $11.00; tipped cash wage to $8.00.

Another scheduled pay bump for many low-wage and tipped workers one year after the first increase.

2 years after the law’s general effective date

Year 2 increases: regular minimum wage to $12.50; tipped cash wage to $10.00.

Workers still below these amounts would see another required raise.

3 years after the law’s general effective date

Year 3 increases: regular minimum wage to $14.00; tipped cash wage to $12.00.

Bigger minimum-pay floor for jobs that currently pay close to minimum wage.

4 years after the law’s general effective date

Year 4 increases: regular minimum wage to $15.50; tipped cash wage to $13.50.

More workers’ pay would be pushed above $15/hour, depending on what they make today.

5 years after the law’s general effective date

Year 5 increases: regular minimum wage to $17.00; disability subminimum path reaches the full minimum wage level.

The regular minimum would reach $17, and workers with disabilities previously paid under 14(c) would have to be paid at least the full minimum wage.

1 day after the 6-year tipped cash wage step takes effect

Tipped minimum fully matches the regular minimum wage; separate tipped wage ends.

Employers would no longer be allowed to use a lower minimum wage just because the job earns tips.

6 years after the law’s general effective date, and then every year after

Automatic yearly updates begin based on typical (median) hourly wages nationwide.

Instead of waiting for Congress, the minimum wage would adjust each year, which can help wages keep up over time.

Related News

4 articles
Laredo Morning Times·11 months ago

Raise the Wage Act proposes $17 federal minimum wage increase

The Raise the Wage Act of 2025, introduced by Rep. Bobby Scott and Sen. Bernie Sanders, would give roughly 22 million Americans a raise. The proposal faces hurdles in a Republican-controlled Congress, especially after President Trump rescinded a Biden-era order for federal contract workers.

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Nation's Restaurant News·11 months ago

Raise the Wage Act reintroduced to Congress

The restaurant industry has expressed concerns over the Raise the Wage Act of 2025, particularly the elimination of the $2.13 tipped subminimum wage. Industry groups argue that doubling the federal minimum wage could lead to mass layoffs and hiring freezes in a volatile economic environment.

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Capital & Main·4 months ago

Congress Could Get Millions of People Off of SNAP by Raising the Minimum Wage, but It Hasn't — for 16 Years

The Raise the Wage Act of 2025 would bring the federal rate to $17 by 2030, potentially impacting 22 million workers. Research suggests this increase could significantly reduce reliance on SNAP benefits, as the current $7.25 rate has lost 30% of its buying power since 2009.

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Source Information

Document Type

Congressional Bill

Official Title

Raise the Wage Act of 2025

Bill NumberHR 2743
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Education and Workforce.

Sponsor

Cosponsors

(167)
D: 167

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.