House Bill for $25 Minimum Wage Nears Deadline—Here’s How It Would Work
The Living Wage for All Act would raise the federal minimum wage from $7.25 to $25 an hour over several years.
A proposed bill aims to raise the federal minimum wage to $25 per hour, with different timelines for large and small employers. Introduced by Democrat Delia Ramirez on April 28, the Living Wage for All Act (H.R. 8555) would gradually increase the national minimum wage over the next decade. Currently set at $7.25 per hour since 2009, the bill seeks to better reflect the cost of living in America.
Large employers, defined as those with annual revenue of $1 billion or more than 500 employees nationwide, would move toward the $25 wage by 2031, while smaller employers would take until 2038 to reach the same target. The legislation would also link the minimum wage to two-thirds of the national median hourly wage, with automatic annual adjustments as median wages change.
In addition to the wage increase, the bill would eliminate lower minimum wages for tipped workers, younger workers, and those with disabilities. This would phase in over time, ensuring all workers receive a consistent minimum wage.
The bill has garnered support from various labor unions and advocacy groups, including the Service Employees International Union, which praises it as a significant step toward addressing the wage crisis. However, it has faced criticism from some economists who warn of potential negative economic consequences, such as job losses, particularly in the hospitality sector and among young workers.
With no committee hearing scheduled yet, the bill's fate remains uncertain. If lawmakers fail to pass it before the current legislative session concludes in January 2027, it will need to be reintroduced in the next Congress.
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