Congress moves to raise minimum wage to $17/hour over six years, then auto-adjust

What it does

This bill raises the federal minimum wage from the current $7.25/hour to $9.50/hour immediately upon enactment, then increases it annually to $17.00/hour over six years, after which it rises automatically each year with median wage growth. It also raises the tipped minimum wage from $2.13/hour to $6.00/hour initially, phasing it up to match the full minimum wage within six years; eliminates the separate subminimum wage for newly hired workers under 20; and phases out the special subminimum wage for workers with disabilities over five years while blocking new employers from obtaining such certificates. Workers gain higher base pay, tip protections, and equal wage treatment; employers face higher labor costs.

Why we flagged it

The bill's core mechanism is a statutory wage floor increase coupled with automatic annual indexing to median wage growth. This is straightforward labor-standards legislation, not a hidden rider or narrow carve-out.

What the text implies

• Automatic indexing to median wage growth after year six means the minimum wage will rise indefinitely without further congressional action, shifting wage-setting power from legislative to administrative process.
• Elimination of the tipped minimum wage may reduce tip-based income volatility for workers but could reduce total compensation if employers reduce base wages or cut hours in response to higher labor costs.
• Phasing out special certificates for workers with disabilities may improve wage equity but could reduce employment opportunities if employers choose not to hire workers with disabilities at full minimum wage.
• The bill does not include provisions for regional cost-of-living adjustments, meaning a $17/hour wage will have vastly different purchasing power in rural Mississippi versus San Francisco.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Low-wage workers gain direct, substantial income increases—roughly 131% over six years—plus elimination of discriminatory subminimum wages for tipped and young workers. The indexed mechanism protects future purchasing power. Broader public benefits from reduced poverty and increased consumer spending, though some small employers and rural businesses may face adjustment costs.

Who stands to gain

• low-wage workers (direct wage increase)
• workers with disabilities (elimination of subminimum wage)
• tipped workers (base wage increase and tip retention rights)

Named in the bill

Fair Labor Standards Act of 1938, Department of Labor, Bureau of Labor Statistics, Section 6 (minimum wage), Section 3(m) (tipped employees), Section 6(g) (newly hired employees under 20), Section 14(c) (special certificates for workers with disabilities)

Where it stands

176 cosponsors: 176 Democrats.

• Apr 8, 2025 — Introduced · Congress.gov: “Introduced in House”
• Apr 8, 2025 — Referred to House Committee on Education and Workforce · Congress.gov: “Referred to the House Committee on Education and Workforce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

4 lobbying clients named this bill on 9 disclosure filings across 6 quarters, Mar 2025 to Jun 2026. Those filings disclosed $3,547,000 in lobbying spend. A filing names 33 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 72% of bills with at least one filing.

Bobby Scott, the sponsor, reported $313,200 in PAC receipts in the 2026 cycle.

• Nfib (national Federation of Independent Business) — $1,670,000 on 1 filing
• Service Employees International Union Ctw-clc — $1,386,000 on 5 filings
• Communications Workers of America — $431,000 on 1 filing
• Coalition for the Preservation of Employment Choice F/k/a 14c Coalition — $60,000 on 2 filings

Lobbying Disclosure Act filings through Jul 21, 2026. A filing shows who paid to lobby on a bill it names, not what changed.