Trump Speaks on Increasing Federal Minimum Wage

United States President Donald Trump has reacted to a proposal to increase the federal minimum wage, a Republican-backed initiative.

The proposed legislation would raise the federal minimum wage—unchanged since July 2009 when it was last increased to $7.25 per hour—to $15 starting in January 2026. It also includes provisions to adjust the rate in line with inflation in the years that follow.

Over time, inflation—especially the spike in prices during the COVID-19 pandemic—has significantly reduced the real value of the current federal minimum wage.

Republican Senator Josh Hawley of Missouri, who introduced the proposal, referenced this long-term decline in purchasing power when introducing the new minimum wage bill.

Trump on Wednesday, June 19, expressed uncertainty about the initiative aimed at increasing the federal minimum wage when asked about the proposal during a briefing at the White House.

Trump reacts to increasing the federal minimum wage

The President, however, said he was unfamiliar with the measure, which was introduced by Senator Hawley.

“I haven’t seen it. I’d have to speak to Josh—he’s a very good friend,” Trump said, adding that the proposal was “interesting” and something he would need to consider further.

Using a Consumer Price Index-based inflation calculator from the Bureau of Labour Statistics, a wage of $7.25 in 2009 would need to be $10.82 today to maintain the same purchasing power.

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The cumulative effect of rising costs over more than 15 years has left many Americans struggling to maintain their standard of living on minimum wage earnings, although inflation rates have recently moderated and now align more closely with the Federal Reserve’s 2% annual target. 

Although several states have already enacted higher minimum wages than the federal baseline, supporters of a national increase argue it would boost earnings for low-income workers, help narrow income gaps, and improve general living conditions.

Opponents warn that raising the wage too sharply could drive up labour costs, put pressure on small businesses, and potentially lead to job losses.

Senator Hawley, joined by Democratic Senator Peter Welch of Vermont, introduced the “Higher Wages for American Workers Act of 2025” last week which, if enacted, would double the federal minimum wage and include inflation-indexed increases thereafter.

Senator Hawley backs the proposal

The Senator, who previously suggested similar wage reform in 2021—targeting corporations with over $1 billion in annual revenue—argues that higher wages are essential for American workers to meet rising living expenses.

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Describing the bill’s bipartisan nature as a “populist position,” Hawley told NBC News that meaningful action is needed if the Republican Party wants to position itself as a party for working Americans.

The Senator emphasised that wage stagnation has affected American workers for years and pointed to the failure of the minimum wage to keep pace with economic changes as a major contributor.

“For decades, working Americans have seen their wages flatline. One major culprit of this is the failure of the federal minimum wage to keep up with the economic reality facing hardworking Americans every day. This bipartisan legislation would ensure that workers across America benefit from higher wages,” Hawley said in a statement.

Currently, employees in ten states and the District of Columbia earn at least $15 per hour. Additionally, in several other states, minimum wage rates may exceed that threshold in the coming year due to inflation-linked adjustments.

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