House Democrats have introduced legislation to gradually raise the federal minimum wage to $17 an hour by 2030, seeking to improve pay for more than 20 million American workers.
Representative Bobby Scott, the Democrat from Virginia, and U.S. Senator Bernie Sanders, the independent from Vermont, introduced the “Raise the Wage Act of 2025” on April 8.
Newsweek has contacted the offices of Representative Scott and Senator Sanders for comment.
Why It Matters
The federal minimum wage has remained at $7.25 since 2010, marking the longest period without an increase since the federal minimum wage was introduced in 1938.
Supporters of the “Raise the Wage Act” argue that it would help lift millions of workers out of poverty and narrow racial and gender wage gaps. About 22 million workers would see higher pay under the proposal, lawmakers said.
The bill would also tie future increases to median wage growth, allowing the minimum wage to keep pace with broader labor market trends.
President Donald Trump in March rescinded a Biden-era executive order that had set a $17.75 minimum wage for workers on federal contracts.
What To Know
The “Raise the Wage Act” has a phased schedule to increase the minimum wage each year until it reaches $17 by 2030.
The bill also proposes phasing out the subminimum wage for tipped workers, which stands at $2.13 per hour at the federal level.
Separate lower minimums for youth workers and workers with disabilities would also be eliminated.
Although some states and dozens of cities have raised their minimum wages above the federal rate, 20 states still use the $7.25 baseline.
A full-time worker earning that rate would bring in about $15,080 annually. According to the 2025 poverty guidelines, the federal poverty level for a single-person household is $15,650.
The last major attempt to raise the federal wage came in 2019, when the House passed a similar bill that was not taken up in the Senate.
In March, President Donald Trump rescinded a Biden-era executive order that had set a $17.75 minimum wage for workers on federal contracts.
The order, originally issued in 2021, raised pay for hundreds of thousands of private-sector workers employed by federal contractors and was part of a broader push to improve wages for non-federal employees working under government agreements.
The reversal means contractors may see their wages drop to $13.30 per hour, the level set under a 2014 order issued by former President Barack Obama, or as low as $7.25, the current federal minimum wage, depending on contract terms and local laws.
According to the Center for American Progress think tank, former President Joe Biden’s rule had delivered average annual pay increases of $5,228 for more than 327,000 workers, many of whom did not hold college degrees.
The organization criticized Trump’s action, saying that it “could not have come at a worse time for workers, who are already concerned about rising costs but now face a threat to their livelihood.”
Critics of Biden’s executive order argued that the increased rate made it more difficult for smaller firms to compete for federal contracts, especially in lower-cost regions.
What People Are Saying
Virginia Representative Bobby Scott, said: “No person working full-time in America should be living in poverty. The Raise the Wage Act will increase the pay and standard of living for nearly 22 million workers across this country. Raising the minimum wage is good for workers, good for business, and good for the economy. When we put money in the pockets of American workers, they will spend that money in their communities.”
Senator Bernie Sanders said: “The $7.25 an hour minimum wage is a starvation wage. It must be raised to a living wage – at least $17 an hour,” Sanders said. “In the year 2025, a job should lift you out of poverty, not keep you in it. At a time of massive income and wealth inequality, we can no longer tolerate millions of workers trying to survive on just $10 or $12 an hour. Congress can no longer ignore the needs of the working class of this country. The time to act is now.”
Representative Nancy Pelosi, the Democrat from California and former speaker of the House, said: “With the introduction of the Raise the Wage Act, Democrats honor the bedrock promise that, in America, hard work deserves fair pay. Raising the federal minimum wage would make a meaningful difference in the lives of millions of Americans — bringing us one step closer to ensuring every worker’s dignity and contributions are honored with a fair paycheck.”
Benjamin Sachs, a professor of labor and industry at Harvard Law School, told Newsweek: “Working people are long past due for an increase in the federal minimum wage, a change that will make life meaningfully better for millions of workers and their families. By indexing the minimum wage, the bill helps ensure that workers wages keep pace with inflation and aren’t captive to political gridlock. Any member of Congress who supports the working class should support this bill.”
What Happens Next
The “Raise the Wage Act of 2025” may face hurdles in Congress. While House Democrats have reintroduced the measure, previous versions have stalled in the Senate. Without bipartisan backing in the Republican-controlled upper chamber, the bill’s chances of becoming law are slim.
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