Raise the Wage Act of 2025
Congress Proposes Raising Federal Minimum Wage to $17 Over Five Years
Stalled
No legislative action in over 90 days.
↔Companion bill: House Democrats Push Raise the Wage Act to Hike Federal Minimum to $17 Over 5 YearsLegislative Progress
Key Points
- The bill would raise the federal minimum wage from the current $7.25 to $17.00 per hour over a five-year period. The first increase to $9.50 would happen about three months after the bill becomes law, followed by yearly raises until it reaches the $17.00 target.
- After the wage reaches $17.00, it would automatically increase every year based on how much the average American worker's pay goes up. This ensures the minimum wage keeps pace with the economy without needing a new act of Congress each time.
- The policy ends the lower pay rates for tipped workers, like servers and bartenders. Their base pay would slowly rise from $6.00 until it matches the full federal minimum wage, and they would still have the right to keep all their tips.
- It also phases out lower pay rates for workers under age 20 and people with disabilities. Currently, some employers are allowed to pay these groups less than the standard minimum, but this bill would bring everyone up to the same $17.00 level over several years.
- The Department of Labor would be required to notify the public and post the new wage rates online at least 60 days before each scheduled increase takes effect so that businesses and workers can prepare.
Impact Analysis
Personal Impact
Life & Work
Small businesses that employ minimum-wage or low-wage workers would face significantly higher labor costs over the five-year phase-in, with the wage floor more than doubling from $7.25 to $17.00. This is especially impactful for restaurants, retail shops, and other labor-intensive small businesses. Some may offset costs through higher prices, reduced hours, or slower hiring. The gradual phase-in gives owners time to adjust, but the permanent indexed increases mean costs will continue rising.
Programs
Disabilities
State Impacts
Milestones
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
Ruben Gallego Introduces Bill For $20 Minimum Wage
Source Information
Document Type
Congressional Bill
Official Title
Raise the Wage Act of 2025
Data Sources
Sponsor
Cosponsors
(34)Analysis generated by AI. Always verify with official sources.