Senate Democrats introduced the “Living Wage for All Act” on June 25, proposing to raise the federal minimum wage to $25 per hour over five years, with a phase-in tied to company size and an end to the tipped minimum wage.
On June 25, Senate Democrats rolled out a sweeping proposal aimed at one of the country’s most basic spending pressures: what people earn for full-time work.
The “Living Wage for All Act,” led by Sen. Chris Murphy. D-Connecticut. would raise the federal minimum wage to $25 an hour over the next five years and eliminate the tipped minimum wage. Murphy made the case during a news conference. telling reporters. “There is no reason that somebody should go to work full-time in this country and not be able to pay their bills. ” adding. “It is time that everybody who works makes a dignified wage.”.
Under the bill’s phase-in schedule, companies with 500 or more workers would have until 2031 to reach the $25 hourly minimum wage. Smaller businesses would have until 2038 to meet the same level.
The proposal also targets a longstanding exception in federal wage law. It would eliminate lower wages for restaurant servers and other workers who rely on tips.
The timing of the initiative comes as many Americans remain focused on the cost of living and the economy more broadly. A recent PBS News/NPR/Marist poll found that about 60% disapprove of President Donald Trump’s handling of the economy. and 45% say they are not planning to take a summer vacation in 2026.
The Senate effort is part of a broader push among Democrats to raise pay. In April, a group of House Democrats led by Reps. Delia Ramirez of Illinois and Analilia Mejia of New Jersey introduced similar legislation seeking to raise the federal minimum wage to $25 an hour.
Ramirez said in a press release, “Minimum wage is not a living wage.” She added, “If we want to address the affordability crisis, we must address the wage crisis.”
The proposal also lands in a federal wage landscape that has barely moved in years. The federal minimum wage has remained at $7.25 an hour since 2009, following a three-step increase under the Fair Minimum Wage Act of 2007.
While the federal rate has stayed the same for more than a decade, 30 states and Washington, DC, now have minimum wages above $7.25.
Taken together. the legislative push and the lack of federal movement since 2009 leave Democrats arguing that the next step is to align wages with rising living costs—while the details of the phase-in and the removal of the tipped minimum wage set up the practical questions that follow. How fast businesses can absorb higher labor costs. and what happens to industries that rely heavily on tips. will be at the center of the debate as the bill advances.
minimum wage $25 minimum wage Senate Democrats Chris Murphy Living Wage for All Act tipped minimum wage cost of living wage legislation housing affordability federal minimum wage
So everyone gets $25 now? That seems insane lol.
I don’t get why it’s tied to company size. Like my boss is a small business so do I just suffer longer? Also tipped wage changes feels like it’ll mess up restaurants.
Tipped minimum wage ending sounds good in theory but everybody acting like servers don’t already get paid somehow. Like won’t tips just go away? Then prices go up anyway. I swear they say “living wage” but it’s the same cycle every year.
If they can raise it that high over 5 years then they can lower it for inflation or whatever too, right? $7.25 since 2009 is crazy though, not gonna lie. I saw a poll too that people aren’t taking vacation… like maybe that’s the point, but $25 sounds like it’ll kill jobs. Also phase-in till 2038 for smaller companies?? that’s basically forever.