Trump To Raise Minimum Wage?

As a new push to raise the minimum wage resurfaces, all eyes are once again on where President Donald Trump stands on the matter.

The “Raise the Wage Act of 2025,” introduced on April 8, proposes gradually increasing the federal minimum wage from $7.25 per hour unchanged since 2010 to $17 by 2029. After that, future increases would be tied to median wage growth to keep pace with broader labor market trends. The legislation, led by Representative Bobby Scott of Virginia and Senator Bernie Sanders of Vermont, could impact over 20 million workers across the country.

Although some cities and states have implemented higher local minimum wages, 20 states still operate under the federal baseline of $7.25. Supporters of the bill argue that raising the minimum wage is essential to helping workers afford basic living costs, especially with inflation still squeezing household budgets. Critics, however, argue that such increases could hurt small businesses and lead to job losses, particularly in rural or lower-cost areas.

President Trump has consistently walked a cautious line on the issue. In 2016, during his first presidential campaign, he suggested that states should control minimum wage laws. In an interview with Fox News’ Bill O’Reilly, Trump said he’d support a $10 per hour wage, but emphasized his priority was job creation over wage mandates. “Let the states make the deal,” he added.

By the 2020 presidential debates, Trump had hardened his stance, arguing that a $15 minimum wage then advocated by Joe Biden would harm small businesses. “They’ll lay off workers,” Trump said, claiming that a steep federal mandate would push restaurants and retailers into closure.

In a more recent interview with NBC News this past December, Trump acknowledged that the current federal rate is “a very low number” but cited California as a cautionary example. “Your restaurants are going out of business all over the place,” he said. While he didn’t rule out the idea of a federal raise entirely, he stressed that cost-of-living differences should be taken into account. “There is a level at which you could do it,” Trump said, “but it should vary by state.”

Since returning to the White House in January, Trump hasn’t significantly changed his tune. On March 14, he rescinded a Biden-era executive order that had raised the minimum wage for federal contractors to $17.75 an hour. That rollback means wages for contractors could fall back to $13.30 set during the Obama administration or even to the federal minimum of $7.25, depending on the specifics of each contract and local wage laws.

The current legislative proposal is expected to face serious headwinds. While House Democrats have revived the Raise the Wage Act, its path through the Senate remains uncertain. Without significant Republican support in the upper chamber, the bill is unlikely to become law. For now, Trump’s approach continues to lean toward caution and flexibility, favoring a state-by-state solution rather than a federal mandate.