Chicago members of Congress propose $25 national minimum wage
WASHINGTON, D.C. - Democratic members of Congress, including three who represent parts of Chicago, introduced a bill on Tuesday to gradually raise the federal minimum wage to $25 per hour over several years.
What we know:
The current federal minimum wage is $7.25 per hour, and has been so since 2009, although many states, like Illinois, have passed higher minimum wage levels since then.
The proposal, dubbed the Living Wage for All Act, would increase the federal minimum wage in two phases, one for larger employers who would be required to increase their pay by 2031, and another for smaller employers who would have until 2038.
The bill also calls for the minimum wage to increase automatically to remain "aligned with typical wages across the economy." It would also ban subminimum wages for tipped workers, youth workers and workers with disabilities.
What they're saying:
U.S. Reps. Jonathan Jackson, Jesus "Chuy" Garcia and Delia Ramirez introduced the bill during a press conference in front of the U.S. Capitol in Washington, D.C.
"Growing up, I saw my immigrant parents and my neighbors working multiple minimum wage jobs just to survive. Today, companies are reporting record-high earnings while working people struggle to survive. Minimum wage is not a living wage. That’s not right. If we want to address the affordability crisis, we must also address the wage crisis," said Ramirez, in a statement.
Advocates argued such a raise was in line with where many companies were already paying their workers and proposals in multiple municipalities and states for higher wages.
"The need for a living wage couldn’t be clearer. The gap between the wealthy and everyone else keeps widening. Corporate profits are at a record high and bosses are actively cutting their workforces, undermining organizing efforts, and trying to replace labor entirely," said García in a statement. "Meanwhile, working families are struggling to pay their rent, buy groceries, and go to the doctor. It’s past time that workers are paid what they deserve."
By the numbers:
The debate about raising the federal minimum wage also played out earlier this year in the Democratic primary race for the open U.S. Senate seat. Lt. Gov. Juliana Stratton, who won the nomination in March, advocated for a $25 per hour wage.
Still, a $25 wage would be significantly higher than any current state-mandated minimum wage as of Jan. 1, 2026. The District of Columbia has the highest rate at $17.95, but in terms of an actual state, Washington state has the highest at $17.13, according to the U.S. Department of Labor.
Illinois gradually raised its minimum wage starting in 2019 until it reached $15 per hour at the beginning of last year.
About 20 states still follow the federal minimum wage, according to federal data.
The other side:
The bill is not likely to pass, at least during the current term in which Republicans are in control of both the Senate and the House of Representatives.
Bryce Hill, the director of fiscal and economic analysis for the Illinois Policy Institute, a nonpartisan research organization that's advocated more conservative fiscal policies, argued a $25 minimum wage might sound appealing, but that evidence shows such an increase is likely to reduce job opportunities, especially for younger workers.
"Under Gov. J.B. Pritzker, the minimum wage has risen to $15 an hour in Illinois and nearly $17 an hour in Chicago, and today he signaled support for increasing the rate in Illinois even further," Hill said in statement. "This has already significantly raised costs on retail and restaurants; and hindered other small businesses that dealt with Illinois’ extended government shutdowns during the pandemic. As well as add billions to government costs for Illinois taxpayers to foot.
He added, "Increasing the minimum wage again to $25 an hour would be an unprecedented jump with costly consequences for workers and businesses alike. A better approach is working to reduce the cost of living in Illinois so wages go further and fostering an environment where businesses and families can thrive."