A bill to raise the federal minimum wage to $25 an hour has spent nearly six months in Congress, with lawmakers facing a narrowing window to advance the proposal before the current legislative session ends.
Illinois Democratic Representative Delia Ramirez introduced the Living Wage for All Act, or H.R. 8555, on April 28. It would gradually increase the federal minimum wage over the next few years, with different deadlines for large and smaller employers.
Senator Chris Murphy, a Connecticut Democrat, said in June that he would introduce a Senate version of the bill.
The Democratic lawmakers who introduced the bill hailed it as a landmark piece of legislation that would reflect America's real cost of living today. The federal minimum wage is currently $7.25 an hour, and it has remained that way since 2009.
The bill has been referred to the House Committee on Education and the Workforce, but is yet to receive a committee hearing.
Newsweek contacted Ramirez’s office by email and the House Committee on Education and the Workforce through the contact form on its website for comment.
What Would the $25 Minimum Wage Bill Do?
The legislation would gradually raise the minimum wage, targeting $25 an hour by 2031 for large employers and 2038 for other employers.
Large employers, defined as those with at least $1 billion in annual revenue or 500 or more employees nationwide, would incrementally increase the minimum wage and meet specific annual targets. Other employers would follow a more gradual schedule, reaching annual targets more slowly.
The bill would also tie the minimum wage to two-thirds of the national median hourly wage, the midpoint of hourly wages among all employees nationwide. Once the minimum wage reached that level, it would automatically adjust each year to maintain the same ratio as median wages changed.
The bill would also phase out lower minimum wages for tipped workers, younger workers and certain workers with disabilities, bringing them up to the standard minimum wage over time.
For tipped workers, this would mean gradually increasing the minimum amount employers must pay them directly, eventually phasing out the system that allows employers to count tips toward meeting their minimum-wage obligations.
What's Next
The House legislation has 32 cosponsors, all Democrats, including Representatives Rashida Tlaib of Michigan, Ro Khanna of California and Pramila Jayapal of Washington.
“Today, companies are reporting record-high earnings while working people struggle to survive. Minimum wage is not a living wage. That’s not right. If we want to address the affordability crisis, we must also address the wage crisis,” Ramirez said when introducing the bill.
Several labor unions and advocacy groups also supported the bill, arguing that raising the minimum wage would help workers keep pace with the cost of living.
“The introduction of the Living Wage for All Act is a powerful testament to the worker-led movement that is forcing a new baseline for livable wages,” April Verrett, president of the Service Employees International Union, said.
“We applaud Rep. Ramirez for this bold $25-an-hour proposal—an important step forward that's driven by workers demanding the money, power, and respect that they’ve earned,” she said.
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But the proposal has drawn criticism for the potential economic consequences of sharply rising labor costs.
A study by the right-leaning Employment Policies Institute, cited by The Daily Signal, estimated that a $25 federal minimum wage could result in about five million fewer jobs. The model projected particularly large effects in the hospitality sector and among workers aged 16 to 24.
“Sky-high mandates will only make life more unaffordable for millions of Americans,” Rebekah Paxton, the institute’s research director, told the outlet.
The federal minimum wage has not increased since 2009, although many states and local governments have established higher rates. As of July 2026, the Department of Labor listed 30 states and the District of Columbia as having minimum wages above the federal rate.
The legislative future of the Living Wage for All Act remains uncertain. It has not yet been heard by a committee. If lawmakers do not pass it before the 119th Congress ends in January 2027, they would need to reintroduce it in the next Congress.
Contact Newsweek editors on this story: Matthew Cannon and Sam Wilson.