Bombshell in USA! Minimum Wage of $25 Proposed: Which Jobs Would Benefit?

A bill introduced in the U.S. Congress proposes raising the federal minimum wage to $25 per hour, a figure that would more than triple the floor in effect since 2009. The initiative was spearheaded by Democratic Senator Chris Murphy of Connecticut, with a parallel proposal in the House of Representatives promoted by Congresswoman Delia Ramírez of Illinois.

According to the text of the Living Wage for All Act, the main beneficiaries would be workers who currently earn wages close to the federal minimum or who are under special pay regimes.

Among the sectors that could see the largest increases are: hospitality, retail, cleaning, caregiving, agriculture, and fast-food employees. These fields, where meager wages abound, would be the first to feel the impact if the law passes.

Murphy explained that the bill aims to respond to the rising cost of living and the loss of purchasing power for millions of American workers. Supporters of the measure argue that nearly half of the country’s workforce earns less than $25 per hour.

One of the most significant aspects of the proposal is the gradual elimination of the so-called «tip credit,» a system that currently allows certain employers to count part of the tips received by workers as part of their wages. If the initiative succeeds, employers would have to pay the full minimum wage, while employees would keep all tips they receive.

The proposal also includes changes for other groups: workers with disabilities, youth under 20, and employees of small businesses. For them, longer transition periods or temporary exemptions would be established, though the ultimate goal is for everyone to reach the $25 floor.

The effect would be most visible in states that maintain the federal minimum wage of $7.25 per hour or close to it. For that reason, workers in states like Texas, Georgia, Alabama, Mississippi, Louisiana, and Tennessee could experience more significant increases than those in jurisdictions with higher minimum wages.

Currently, according to data from the U.S. Department of Labor (DOL), some of the jurisdictions with the highest minimum wages are: Washington D.C. ($17.50), California ($16.50), New York ($16.00), Washington ($16.28), and Massachusetts ($15.75). In those places, the increase would be smaller in relative terms, but it would still impact workers’ pockets.

The proposal does not call for an immediate increase to $25 per hour, but rather a gradual process. The bill defines large companies as those with gross revenues of at least $1 billion or more than 500 employees. These would have to comply with the new floor in a shorter timeframe, while small and medium-sized enterprises would have more time to adapt.

For now, there is no set date for a vote on the initiative. The proposal was introduced on June 25 in the Senate by Chris Murphy, and the House version, identified as H.R. 8555, was referred on April 28, 2026, to the Committee on Education and the Workforce for review. Before reaching the floor of both chambers, the bills must clear various legislative stages, including committee consideration.

The debate promises to be fierce: Republicans have already signaled their opposition, arguing that the measure would destroy jobs and hurt small businesses. But Democrats, backed by unions and social organizations, insist it is a matter of social justice. Meanwhile, millions of workers hope the dream of a living wage becomes reality.