A new federal bill introduced in April proposes to raise the minimum wage to $25 per hour, a significant increase from the current $7.25 per hour that has been in place since 2009. The "Living Wage for All Act" outlines a "two-track phase-in" approach, requiring large, profitable corporations to reach the $25 minimum by 2031, while smaller employers would have until 2038. Supporters of the bill argue that the current minimum wage is insufficient to cover rising costs of housing, healthcare, and groceries.
Congresswoman Delia C. Ramirez stated in a press release that the current minimum wage does not reflect a living wage, citing her experience with individuals working multiple jobs to survive while companies report high earnings. "If we want to address the affordability crisis, we must also address the wage crisis," she said.
While this federal proposal is under consideration, many states have already enacted minimum wage increases independently. Currently, 37 states have minimum wages higher than the federal rate, with 22 of those having recently implemented increases. For example, California's standard minimum wage is $16.90 per hour, with some industries, such as fast food, having even higher rates. Alaska's minimum wage is $13.00 per hour and is scheduled to reach $15.00 by 2027.
Despite these state-level actions, a Nexstar analysis using MIT's Living Wage Calculator suggests that even a $25 federal minimum wage would not be enough for a single working adult to live self-sufficiently in 14 states. This calculation is based on an individual working full-time, or 2,080 hours per year, and does not account for dependents. For instance, Hawaii requires a living wage of nearly $30 per hour for a single adult, and Massachusetts and California also exceed $30 per hour. Other states where $25 per hour would be insufficient for a single adult include Virginia, New Hampshire, Maryland, Colorado, Connecticut, Oregon, Washington, New Jersey, New York, and the District of Columbia. Rhode Island is on the cusp, with a calculated living wage of $25.01 per hour for a single adult.
West Virginia has the lowest calculated living wage for a single adult at $19.53 per hour. However, the analysis becomes more stark when considering families. With children, only 11 states would allow a household to survive on a $25 minimum wage, and often by narrow margins. For a household with two working adults, Kansas would require a living wage of $24.99 per hour per adult. Other states that could theoretically meet this threshold for two working adults include Iowa, Texas, West Virginia, South Dakota, Alabama, Louisiana, Tennessee, Arkansas, Kentucky, and Mississippi.