28. April 2026

Sanders-AOC Backed Coalition Introduces Bill to Raise Federal Minimum Wage to $25

WASHINGTON-- Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez on Tuesday introduced legislation to raise the federal minimum wage to $25 an hour, a sweeping proposal that would more than triple the current baseline and set up a high-stakes debate over wages, inflation and the future of low-income work in the United States.

The bill, backed by progressive Democrats in both chambers, would phase in the increase over several years and index future wage growth to inflation to prevent erosion in workers’ purchasing power. The current federal minimum wage has remained at $7.25 an hour since 2009, though many states and cities have enacted higher standards.

“No one working full time in this country should be living in poverty,” Sanders, an independent from Vermont who caucuses with Democrats, said in a statement announcing the proposal. He described the measure as a response to rising living costs and widening income inequality.

Ocasio-Cortez, a New York Democrat, said the legislation reflects economic realities in many parts of the country where housing, food and health care costs have surged. “A $25 minimum wage is about dignity and ensuring that work pays enough to live,” she said.

Supporters argue the increase would lift wages for millions of workers, reduce reliance on public assistance programs and stimulate consumer spending. Labor groups and progressive advocacy organizations quickly rallied behind the bill, calling it a long-overdue correction after years of stagnant federal wage policy.

Business groups and many Republicans sharply criticized the proposal, warning that such a steep increase could drive up labor costs, accelerate price increases and force small businesses to cut jobs or close. “A one-size-fits-all federal mandate at that level would be devastating in many regions of the country,” said one industry representative, echoing concerns frequently raised in past wage debates.

Economists are divided on the potential impact. Some say higher wages can boost productivity and reduce turnover, while others caution that large, rapid increases could strain employers, particularly in lower-cost areas where prevailing wages are far below the proposed level.

The legislation is unlikely to advance in the closely divided Congress without significant changes, but it is expected to serve as a messaging vehicle for Democrats heading into upcoming elections, highlighting contrasts with Republican economic priorities.

Past efforts to raise the federal minimum wage have stalled amid partisan disagreement, though incremental increases have been enacted at the state and local level. If enacted, the $25 standard would mark the largest single increase in the federal minimum wage since it was first established in 1938.

Committee hearings on the bill are expected in the coming weeks, where lawmakers will hear testimony from workers, business owners and policy experts as the debate over wages and economic policy intensifies.