Democrats Introduce $25 'Living Wage' Bill, Drawing Economic Debate
Rep. Ro Khanna (D-Calif.) and other Democrats introduced the Living Wage for All Act, which would tie the federal minimum wage to two-thirds of the national median hourly wage, eventually reaching approximately $25. The current federal minimum wage stands at $7.25, though roughly half of states have already set higher minimums. The bill reignites longstanding debates about the economic effects of minimum wage increases on employment and worker welfare.
Rep. Ro Khanna and fellow Democrats introduced the Living Wage for All Act, framing it as a response to stagnant wages relative to historical levels and rising worker productivity. Rather than immediately setting a $25 floor, the bill would index the federal minimum wage to two-thirds of the national median hourly wage — which, based on May 2025 Bureau of Labor Statistics data showing a median of $24.51, would currently equate to roughly $16 per hour, with the $25 figure not reached until sometime in the 2030s. Critics argue Khanna selectively cited 1968 — the historical peak of the real minimum wage — as his benchmark, and that a population-weighted effective minimum wage already stands around $12.13 when accounting for state and local laws. The BLS reports that only about 1 percent of hourly workers currently earn the federal minimum wage or less, and those workers are disproportionately young, part-time, and without high school diplomas. Opponents contend that broad productivity gains cited by Khanna are averaged across the entire workforce and do not justify a uniform wage floor increase for entry-level and low-skill positions. The bill is considered unlikely to advance in the current Congress.
What's missing
The article does not include perspectives from labor economists or advocacy groups who support minimum wage increases, nor does it address peer-reviewed research suggesting moderate minimum wage hikes have limited negative employment effects. The potential impact on workers in states where the federal minimum wage is still the operative floor is also underexplored.
How coverage differed
The sole available source is Reason, a libertarian-leaning outlet, which frames the bill negatively as 'economic snake oil' and emphasizes critiques from the Cato Institute. No progressive or neutral sources were provided, meaning the bill's potential benefits for low-wage workers — such as reduced poverty and increased consumer spending — receive little to no coverage here.
What different sources said
- ReasonRight
The 'Living Wage' Attack on Jobs and Prosperity
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