Senator Josh Hawley, a Republican from Missouri, introduced the “Higher Wages for American Workers Act” to raise the federal minimum wage from $7.25 to $15 per hour starting in 2026, with annual inflation adjustments thereafter.
Co-sponsored by Democratic Senator Peter Welch of Vermont, the bill aims to address the stagnation of working Americans’ wages, which Hawley attributes to the federal minimum wage failing to keep pace with rising costs for necessities like housing and groceries. Hawley frames this as a populist move to support working-class voters, aligning with the GOP’s shift under Trump’s influence.
President Trump has been noncommittal to the proposal thus far, stating he would need to discuss it with Hawley and expressing concern about potential negative impacts on businesses, such as restaurants. Proponents argue the raise would boost the standard of living for nearly 22 million workers, reduce poverty, and stimulate local economies as workers spend more. Critics, including the Employment Policies Institute, contend it could lead to over 800,000 job losses, particularly in low-cost-of-living areas, as businesses may cut staff or automate to offset higher labor costs.
Some Republicans, such as Senator Ron Johnson, oppose it, arguing that it distorts markets and could lead to unemployment, emphasizing that the “real minimum wage is $0” when jobs are lost. Hawley’s proposal also faces challenges in the GOP-controlled Senate, where it may struggle to secure the 60 votes needed to advance. The bill reflects a broader debate about federal versus state control, as 31 states, including Missouri, already have minimum wage mandates. Despite its bipartisan sponsorship, the legislation’s passage remains uncertain due to traditional resistance to federal wage mandates.
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