Proposal to Raise the Minimum Wage to $17 by 2028 Gains Wide Support From Democrats

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An estimated 28 million workers could see their pay increase. Here’s what you need to know about. 

Record inflation has squeezed the personal finances of millions of Americans lately. And that same inflation is leading some in Congress to propose a dramatic increase in the federal minimum wage. Last month, lawmakers in the Senate and the House of Representatives introduced legislation to raise the floor on hourly pay from $7.25 to $17 across the nation. What’s in the bill and will it pass? Read on to learn more.

What’s in the bill?

The so-called Raise the Wage Act would do just that: raise the minimum wage in the United States over the next half-decade. However, it would also introduce pay parity for certain workers who do not already qualify for the national minimum wage.

The headline-grabbing feature of the bill is an increase of the minimum wage to $17 per hour across the country — but it won’t happen immediately if the bill passes. Upon the passage of the bill into law, the minimum wage would jump to $9.50 per hour. Over the next five years, the minimum wage would grow by $1.50 annually. In the fifth year, the minimum wage would be $17, and would rise with the median hourly wage of American workers in following years.

Currently, not all workers are paid the same minimum wage. Those workers who earn tips, are under age 20, or have a disability, can be paid below the federal minimum wage. The bill would account for those workers by requiring an annual wage increase.

The rising cost of living

Over the past few years, inflation has slashed the buying power of many Americans. The authors of the Raise the Wage Act, however, point to a more gradual inflation that has chipped away at the spending power of low-income workers for decades.

Even modest inflation can significantly reduce the value of a dollar over time. The $7.25 federal minimum wage is worth a lot less now than it was when it was passed in 2009. In fact, had the minimum wage kept up with inflation over the last 14 years, it would be around $10.30 today.

And that may still not be enough, according to bill sponsors. The Senate Committee on Health, Education, Labor and Pensions, defines a living wage as at least $17 per hour for a worker in a double-income household with one child. Similarly, a 2021 study found that in 93% of U.S. counties, a full-time worker earning the minimum wage cannot afford a one-bedroom apartment.

Can it pass?

The proposed legislation has already proven widely popular among Democrats in Congress, with 29 Senators and almost 150 House Representatives introducing the bill. And President Biden, who previously increased the minimum wage for federal government employees, would likely sign the bill if it crossed his desk.

However, the bill would need to pass the Republican-controlled House first. While Republicans have historically shied away from minimum wage-raising proposals, the bill is far from doomed. Recently, proposals to raise the state-wide minimum wage have passed in many states across the country, including those with Republican governors and senators, such as Nebraska, Nevada, and Florida. And in a narrowly divided House, only a handful of Republican defectors could tip the scale in the bill’s favor.

Against the backdrop of growing expenses and a stagnant wage floor, Democrats in Congress are proposing an increase to the federal minimum wage. The future of the Raise the Wage Act is uncertain, but in the court of popular opinion, there is a case to be made for its passage.

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