- WorkersRaises incomes for minimum-wage workers, increasing take-home pay and immediate household earnings.
- WorkersPhases out lower tipped and youth wages, boosting earnings for tipped and young workers.
- Potential benefitIndexes future increases to median wages, providing predictable, automatic annual adjustments.
Raise the Wage Act of 2025
Referred to the House Committee on Education and Workforce.
This bill raises the federal minimum wage in stages to $17.00 per hour over five years, then indexes future increases to annual changes in the median hourly wage. It phases up and then eliminates separate subminimum wage rules for tipped workers, newly hired workers under 20, and workers paid under special certificates for disabilities, while adding notice and tip-retention protections and transitional assistance.
Role of federal mandate versus small-business cost burdens
Relative to its intended legislative type, this bill is a clearly focused substantive rewrite of key FLSA provisions with high specificity in legal mechanics and integration with existing statutory text.
This bill raises the federal minimum wage in stages to $17.00 per hour over five years, then indexes future increases to annual changes in the median hourly wage.
It phases up and then eliminates separate subminimum wage rules for tipped workers, newly hired workers under 20, and workers paid under special certificates for disabilities, while adding notice and tip-retention protections and transitional assistance.
The Department of Labor must publish advance notices of increases and provide technical assistance to employers holding special certificates before those certificates expire.
Ambitious national wage rise with high controversy; phased design helps, but major procedural and opposition hurdles reduce lawmaking probability.
Relative to its intended legislative type, this bill is a clearly focused substantive rewrite of key FLSA provisions with high specificity in legal mechanics and integration with existing statutory text. It establishes concrete schedules, administrative roles, and procedural publication requirements while phasing out certain subminimum wage authorities.
Role of federal mandate versus small-business cost burdens
Who stands to gain, and who may push back.
These are examples from the analysis, not a ranked list of the most-affected groups.
- WorkersRaises labor costs for employers, particularly in low-margin industries like restaurants and hospitality.
- WorkersMay prompt employers to reduce hours, cut hiring, or accelerate automation to control labor expenses.
- Small businessesSmall businesses face added administrative and compliance burdens adapting payroll and tip policies.
Why the argument around this bill splits.
Role of federal mandate versus small-business cost burdens
Overall strongly supportive.
The bill substantially raises wages for low-income workers, ends discriminatory subminimum pay, and indexes future increases to wage growth.
Supports strong enforcement and transition help for affected workers and employers.
Cautiously supportive but pragmatic.
The gradual phase-in and indexing are useful, but the fiscal and employment impacts need monitoring.
Would want mitigation for small employers and evaluation of effects on hiring.
Likely opposed.
Sees the bill as costly federal overreach that raises labor costs substantially and risks job losses, especially for small businesses and low-skill workers.
Also concerned repeal of special certificates may remove employment options for some disabled individuals.
The path through Congress.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Ambitious national wage rise with high controversy; phased design helps, but major procedural and opposition hurdles reduce lawmaking probability.
- No cost estimate or CBO score included
- Detailed economic effects on small businesses unspecified
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
Go deeper than the headline read.
Role of federal mandate versus small-business cost burdens
Ambitious national wage rise with high controversy; phased design helps, but major procedural and opposition hurdles reduce lawmaking proba…
Relative to its intended legislative type, this bill is a clearly focused substantive rewrite of key FLSA provisions with high specificity in legal mechanics and integration with existing statutory text. It establishes…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.