Sen. Chris Murphy Introduces Bill to Raise Federal Minimum Wage to $25 an Hour

U.S. Sen. Chris Murphy of Connecticut has introduced the Living Wage for All Act, a proposal that would gradually raise the federal minimum wage to $25 per hour, marking the most significant effort to increase the national wage floor since it was last raised in 2009.

Under the proposal, large corporations would be required to reach a $25 hourly minimum wage by 2032, while smaller businesses would have until 2039 to comply. The legislation would also tie future increases to two-thirds of the national median wage, creating an automatic adjustment system designed to keep wages aligned with the cost of living.

Murphy said the bill is intended to address the growing gap between wages and everyday expenses.

“If you work full time in this country, you should be able to afford to live,” Murphy said, arguing that many Americans continue to struggle financially despite working long hours.

The proposal is backed by several Democratic senators and House members, who say the federal minimum wage of $7.25 per hour has remained unchanged for nearly two decades while housing, food, healthcare, and other living costs have steadily increased. Supporters also point to research suggesting that if the minimum wage had kept pace with inflation and productivity since the late 1960s, it would be close to $25 today. They note that roughly 45% of American workerscurrently earn less than $25 an hour.

In addition to raising the wage floor, the legislation would gradually eliminate subminimum wages for tipped employees, workers with disabilities, and youth workers, ensuring all employees receive at least the federal minimum wage.

Opponents argue the proposal could place significant financial pressure on businesses. Critics contend that requiring employers to pay substantially higher wages may lead to reduced hiring, fewer employee hours, higher prices for consumers, or even business closures. Some lawmakers have suggested that lowering the overall cost of living would be a more effective way to improve Americans' financial well-being.

Although more than 30 states and Washington, D.C., already have minimum wages above the federal level, 20 states continue to follow the federal minimum wage of $7.25 or have state laws that effectively defer to the federal standard.

The Living Wage for All Act now heads to Congress, where it faces debate over its potential economic impact and chances of becoming law.