US Federal Minimum Wage Remains at $7.25 Amidst Ongoing Calls for Increase

Current Federal Minimum Wage Unchanged Since 2009

Contrary to some discussions or proposals, the federal minimum wage in the United States has not seen an increase to $9.50 per hour. It has remained at $7.25 per hour since its last adjustment on July 24, 2009, marking over 16 years without a federal raise. This rate applies to covered nonexempt workers nationwide, though many states and localities have established higher minimums.

Legislative Efforts and Proposals

Despite the federal rate holding steady, there have been significant legislative efforts to increase it. The 'Raise the Wage Act' has been a prominent vehicle for these proposals. The 2021 version of the act, for instance, aimed to gradually increase the federal minimum wage to $15 per hour by 2025. While it passed the House of Representatives, it did not advance in the Senate.

More recently, the 'Raise the Wage Act of 2023' was introduced in both the House and Senate, proposing a gradual increase to $17 per hour by 2028. Another proposal, the 'Raise the Wage Act of 2025', aims to gradually raise the minimum wage to $17 by 2030. However, these bills have not been enacted into law. The specific plan mentioned in some discussions, involving an increase to $9.50 per hour as an intermediate step and a target of $15 by 2030, does not align with the details of the most recent major federal legislative proposals.

Economic and Political Landscape

The debate surrounding a federal minimum wage increase is complex, involving various economic and political considerations. Proponents argue that a higher minimum wage would improve living standards for low-wage workers, reduce poverty, and stimulate economic growth through increased consumer spending. Opponents, however, express concerns about potential job losses or inflationary pressures. The value of the federal minimum wage has declined significantly due to inflation since its last increase.

Many states and cities have taken action independently, implementing minimum wages significantly higher than the federal standard. As of 2025, several states and numerous cities have minimum wages at or above $15 per hour, reflecting a diverse approach to wage policy across the country.

Future Outlook

As of late 2025, the federal minimum wage remains at $7.25 per hour. The ongoing legislative efforts and public discourse indicate that the push for a higher national minimum wage is likely to continue, but any future increase would require congressional approval and presidential assent.