- WorkersRaises earnings for many low-wage workers, increasing take-home pay and reducing poverty risk.
- ConsumersLikely increases consumer spending from higher low-wage household incomes, supporting demand for goods and services.
- WorkersReduces wage differentials by eliminating separate subminimum wages for tipped, youth, and disabled workers.
Raise the Wage Act of 2025
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
The Raise the Wage Act of 2025 phases up the federal minimum wage to $17.00 an hour over six years, then indexes future increases to the annual change in the median hourly wage. It phases up and then eliminates subminimum wages for tipped employees and for newly hired workers under 20, and raises and phases out special 14(c) subminimum certificates for workers with disabilities while providing transition assistance.
Progressives emphasize equity and ending subminimums
Relative to its intended legislative type, this bill is a well-specified substantive change to the Fair Labor Standards Act with precise statutory edits, schedules, and administrative tasks assigned.
The Raise the Wage Act of 2025 phases up the federal minimum wage to $17.00 an hour over six years, then indexes future increases to the annual change in the median hourly wage.
It phases up and then eliminates subminimum wages for tipped employees and for newly hired workers under 20, and raises and phases out special 14(c) subminimum certificates for workers with disabilities while providing transition assistance.
The bill requires advance public notice of wage increases and adjusts certain penalties related to tips.
Ambitious, high-profile labor reform that attracts partisan division; easier in House, hard in Senate without broad dealmaking.
Relative to its intended legislative type, this bill is a well-specified substantive change to the Fair Labor Standards Act with precise statutory edits, schedules, and administrative tasks assigned. It lays out a clear implementation schedule and integrates cleanly into existing statutory text.
Progressives emphasize equity and ending subminimums
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, which could lead to reduced hiring or fewer hours for some workers.
- WorkersCould prompt price increases in affected industries, particularly labor-intensive service sectors like restaurants.
- Potential burdenSmaller businesses may face greater financial and compliance burdens adjusting payroll and staffing.
Why the argument around this bill splits.
Progressives emphasize equity and ending subminimums
Supportive.
Sees the bill as a long‑overdue correction to low wages and an advance for economic justice and workers' rights.
Values elimination of tipped and youth subminimums and the phase‑out of 14(c) certificates for disability equity.
Cautiously supportive but pragmatic.
Appreciates phased approach and indexing, but wants analysis of costs, employment effects, and targeted supports for small employers.
Looks for offsets and implementation safeguards.
Generally opposed.
Regards the bill as costly federal overreach that raises business costs, risks job losses, and interferes with labor markets.
Particularly concerned about ending 14(c) certificates and effects on disability employment and small employers.
The path through Congress.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Ambitious, high-profile labor reform that attracts partisan division; easier in House, hard in Senate without broad dealmaking.
- No CBO cost estimate included
- Stakeholder (restaurant/business) opposition magnitude
Recent votes on the bill.
No vote history yet
The bill has not accumulated any surfaced votes yet.
Go deeper than the headline read.
Progressives emphasize equity and ending subminimums
Ambitious, high-profile labor reform that attracts partisan division; easier in House, hard in Senate without broad dealmaking.
Relative to its intended legislative type, this bill is a well-specified substantive change to the Fair Labor Standards Act with precise statutory edits, schedules, and administrative tasks assigned. It lays out a clear…
Go beyond the headline summary with full stakeholder mapping, legislative design analysis, passage barriers, and lens-by-lens tradeoff breakdowns.