Bill to raise minimum wage to $25 an hour will be introduced in Senate

On Thursday, Senator Chris Murphy (D-Connecticut) is set to introduce a new bill that would gradually raise the federal minimum wage to $25 per hour, aiming to re-engage working-class voters who have drifted away from the Democratic Party. The proposal, called the Living Wage for All Act, is mirrored by a companion bill already filed in the House of Representatives.

Murphy, often mentioned as a possible 2028 presidential contender, argues that Democrats must adopt bolder positions on economic affordability after their significant losses in the 2024 elections. “Democrats need to offer solutions that match the scale of the challenges people face,” he said in an interview. “The way to tackle the core financial struggle—simply not having enough to cover basic expenses—is to ensure the minimum wage becomes a true living wage.”

Under the plan, the current federal minimum of $7.25 per hour would rise to $12 in the first year, with large corporations required to reach $25 within six years and smaller businesses given up to 13 years to comply. The legislation would also eliminate subminimum wages for tipped workers, youth employees, and those with disabilities. Nearly half of U.S. workers currently earn less than $25 hourly.

Although the bill faces slim chances in a Republican-controlled Congress, it stands out as one of the most ambitious efforts to lift worker pay at a time when wage growth, while present, has lagged behind inflation.

Thirty-four states, districts, or territories—including Washington, D.C.—have already set minimum wages above the federal level, according to the National Conference of State Legislatures. Saru Jayaraman, president of the progressive advocacy group One Fair Wage and a collaborator on the bill, said support for a $25 minimum helped secure primary victories in competitive races across Illinois, New Jersey, Pennsylvania, and California. She noted backing for the idea extends beyond traditional liberal bases, reaching some MAGA-aligned voters as well.

The $25 target stems from MIT’s living wage calculations, which factor in essential costs like housing, health care, food, child care, and transportation. While Democrats have long pushed to increase the federal minimum wage, Murphy’s proposal sets the highest benchmark seen so far in the Senate. In the House, Representative Delia C. Ramirez (D-Illinois) is championing the companion bill, which gained broad Democratic support earlier this year. Another version, introduced by Senator Bernie Sanders (I-Vermont), calls for a $17 minimum and has 33 Democratic co-sponsors, including Murphy.

Additional Senate supporters of Murphy’s bill include Democrats Richard Blumenthal (Connecticut), Andy Kim (New Jersey), and Ron Wyden (Oregon). The federal minimum wage has remained unchanged since 2009, though only about 1 percent of workers currently earn at or below that rate.

Opposition from business groups remains strong, with critics arguing that market forces—not federal mandates—should guide wage levels. Ryan Bourne, an economist at the libertarian Cato Institute, warned that a steep federal increase could lead to job cuts or business closures, particularly in lower-cost rural areas. He pointed to rising average wages as evidence that local economies are already adapting organically.

“Local policymakers understand regional economic conditions better,” Bourne said. “It makes more sense for wage standards to be determined closer to the ground.”
Murphy dismissed such concerns as overblown, citing cities that adopted a $15 minimum without suffering the predicted economic fallout. He emphasized the bill’s phased approach as a way to ease the transition for employers. “Business leaders claimed disaster was coming,” he said. “But the massive job losses never happened.”

Alex Jacquez, policy chief at the left-leaning Groundwork Collaborative and former aide to Sanders, helped shape the $15 minimum wage push in the 2021 economic bill.

He believes recent wage gains during the post-pandemic recovery have shifted thinking among progressive leaders, who now see $15 as insufficient. “This is also a mobilizing tool,” he said. “It gives people something bold to rally around—a clear sign that Democrats are fighting for them.”

To date, most legislative efforts to ease financial strain have focused on tax relief, such as expansions of the child tax credit, Affordable Care Act subsidies during the pandemic, or provisions in Republicans’ sweeping tax package. While Murphy backs initiatives like the child tax credit and student debt relief, he argues they fall short in energizing voters.

“People don’t just want checks,” Murphy said. “They want fair pay for their work. Tax benefits try to fix a broken system. Why not fix the system itself?”

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Original Article: Bill to raise minimum wage to $25 an hour will be introduced in Senate