House Democrats Introduce $25 Federal Minimum Wage Bill

On Tuesday, Representatives Delia Ramirez (Illinois) and Analilia Mejia (New Jersey) unveiled legislation to raise the federal minimum wage to $25 per hour. The bill calls for a multi-year phase-in: large employers—those with at least 500 employees or $1 billion in annual revenue—must reach $25 by 2031, while smaller firms have until 2038. After the initial increases, the wage would be indexed to two-thirds of the national median hourly earnings, and the separate “tipped” minimum wage would be eliminated.

HuffPost

The federal minimum wage has been $7.25 since 2009, unchanged for over a decade. While many states have set higher floors, the $7.25 rate still applies in 16 states, primarily in the South. Some blue states have minimums near $17, and cities such as San Diego have passed ordinances that will lift hospitality wages to $25 by 2030. The new proposal represents the most ambitious federal target advanced by progressive members of Congress.

HuffPost

Sponsoring members are joined by Chuy Garcia (Illinois), Rashida Tlaib (Michigan), Lateefah Simon (California), and Greg Casar (Texas)—all chairs of the House Progressive Caucus. Labor organizations endorsing the bill include the Service Employees International Union, the National Education Association, and the advocacy group One Fair Wage.

HuffPost

• Introduction: Tuesday (date not specified).

HuffPost

• Phase-in for large employers: $25 by 2031.

HuffPost

• Phase-in for smaller employers: $25 by 2038.

HuffPost

• Future indexing: Wage tied to two-thirds of the national median hourly pay after initial increases.

HuffPost

• Tipped wage: Elimination of the separate tipped minimum.

HuffPost

• Current federal minimum: $7.25 per hour.

HuffPost

• Target federal minimum: $25 per hour.

HuffPost

• Phase-in periods: 2031 (large firms) and 2038 (small firms).

HuffPost

• Indexing: 2/3 of national median hourly earnings.

HuffPost

• State coverage: $7.25 still applies in 16 states; some states have minimums around $17; San Diego will reach $25 for certain hospitality workers by 2030.

HuffPost

Proponents argue a $25 floor would close the gap between full-time earnings and basic living costs, aligning federal standards with rising inflation. The phased schedule is presented as a safeguard for small businesses, giving them time to adjust payroll. If enacted, the policy would reshape wage standards nationwide and could influence state and local wage legislation.

HuffPost

Rep. Ramirez stressed that the stagnant $7.25 wage leaves many full-time workers unable to meet basic expenses, and she framed the gradual rollout as a means to protect small businesses. Rep. Mejia asserted that organized advocacy makes the $25 target achievable and that critics labeling the plan “too ambitious” overlook the necessity of a living wage across the country.

HuffPost

All Republican members of Congress have signaled opposition, citing concerns about economic feasibility and potential harm to businesses, especially in states where the increase would more than double the current floor. Some moderate Democrats are also expected to resist the proposal, fearing political backlash in regions with lower cost-of-living pressures.

HuffPost

• “People are working full-time jobs and still cannot afford to live,” — Delia Ramirez, Representative, Illinois

HuffPost

• “is not a living wage. That is a wage to keep you poor and barely keep you living.” — Delia Ramirez, Representative, Illinois

HuffPost

• “ensure small businesses are able to get to 25 an hour.” — Delia Ramirez, Representative, Illinois

HuffPost

• “The truth is we know there isn’t a corner in these United States where making less than $25 is tenable.” — Analilia Mejia, Representative, New Jersey

HuffPost

The sources do not provide independent economic analyses of the bill’s cost impact, nor estimates of job effects or employer compliance challenges. Data on how the phased schedule would affect different industry sectors remain absent.

HuffPost

The proposal is expected to be referred to the House Committee on Education and Labor for further debate. Supporters anticipate hearings on the economic rationale, while opponents plan to mobilize opposition ahead of any floor vote. A full congressional vote remains uncertain given the current Republican control of both chambers.

HuffPost