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One Fair Wage noted that "tipped workers can still legally be paid as little as $2.13 an hour, a system advocates describe as a direct legacy of slavery."
Over a third of US states are set to raise their minimum hourly wage in 2026, but worker advocates including Sen. Bernie Sanders on Wednesday decried a federal minimum wage that's remained at $7.25 since 2009—and just $2.13 an hour for tipped workers for over three decades.
Minimum wage hikes are set to go into effect in 19 states on Thursday: Arizona, California, Colorado, Connecticut, Hawaii, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, Virginia, and Washington.
Increases range from 28 cents in Minnesota to $2 in Hawaii, with an average hike of 67 cents across all 19 states. More than 8.3 million workers will benefit from the increases, according to the Economic Policy Institute (EPI). The mean minimum wage in those 19 states will rise to $14.57 in 2026, up from $13.90 this year.
Three more states—Alaska, Florida, and Oregon—plus Washington, DC are scheduled to raise their minimum wages later in 2026.
In addition to the state hikes, nearly 50 counties and municipalities plan to raise their minimum wages in the coming year, according to the National Employment Law Project (NELP). These include San Diego, California—where the minimum wage for hospitality workers is set to rise to $25 an hour by 2030—and Portland, Maine, where all workers will earn at least $19 by 2028.
However, the federal minimum wage remains at $7.25, and the subminimum rate for tipped workers is $2.13, where it's been since 1991—and has lost more than half its purchasing power since then.
The federal minimum wage has stayed at $7.25 since 2009. In 2026, workers in 19 states and 49 cities and counties an increase. Alabama’s rate will stay at $7.25. 🔗 https://t.co/mrGfPAKba3 pic.twitter.com/EsokVIc6KP
— AL.com (@aldotcom) December 31, 2025
"Tipped workers can still legally be paid as little as $2.13 an hour, a system advocates describe as a direct legacy of slavery," the advocacy group One Fair Wage (OFW) said in a statement Tuesday.
Sanders (I-Vt.) said on social media on the eve of the hikes: "Congratulations to the 19 states raising the minimum wage in 2026. But let’s be clear: A $7.25 federal minimum wage is a national disgrace. No one who works full time should live in poverty. We must keep fighting to guarantee all workers a living wage—not starvation wages."
Yannet Lathrop, NELP's senior researcher and policy analyst, said earlier this month that "the upcoming minimum wage increases are incremental and won’t magically turn severely underpaid jobs into living-wage jobs, but they do offer a bit of relief at a time when every dollar matters for people."
“The bigger picture is that raising the minimum wage is just one piece of a much larger fight for a good jobs economy rooted in living wages and good benefits for every working person," Lathrop added. "That’s where we need to get to."
Numerous experts note that neither $7.25, nor even $15 an hour, is a livable wage anywhere in the United States.
"The gap between wages and real living costs is stark," OFW said. "According to the MIT Living Wage Calculator, there is no county in the United States where a worker can afford to meet basic needs on less than $25 an hour. Even in the nation’s least expensive counties, a worker with one child would need at least $33 an hour to cover essentials like rent, food, childcare, and transportation."
"Advocates argue that policies like President [Donald] Trump’s 'no tax on tips' proposal fail to address the underlying problem of poverty wages," OFW continued. "While the policy has drawn attention, they say it is a headline rather than a solution, particularly since nearly two-thirds of tipped workers do not earn enough to owe federal income taxes."
Frustrated by the long-unchanged $7.25 federal minimum wage, numerous states in recent years have let voters give themselves raises via ballot initiatives. Such measures have been successful even in some red states, including Missouri and Nebraska.
Rising minimum wages are a legacy of the union-backed #FightFor15 movement that began among striking fast-food workers in 2012. At least 20 states now have minimum wages of $15 or higher.
However, back then, "the buying power of a $15 minimum wage was substantially higher than it is today," EPI noted. "In 2025, a $15 minimum wage does not achieve economic security for working people in most of the country. This is particularly true in the highest cost-of-living cities."
In April, US senators voted down an amendment that would have raised the federal minimum wage to $17 an hour. Every Democratic and Independent upper chamber lawmaker voted in favor of the measure, while all Republicans except Sen. Josh Hawley (Mo.) rejected it.
As Trump administration and Republican policies and practices—such as passing healthcare legislation that does not include an extension of Affordable Care Act tax credits, which are set to expire on Wednesday and send premiums soaring—coupled with persistently high living costs squeeze workers, advocates say a living wage is more important than ever.
The issue is underscored by glaring income and wealth inequality in the US, as well as a roughly 285:1 CEO to worker pay gap among S&P 500 companies last year.
"Minimum wage doesn't cover the cost of living," Janae van De Kerk, an organizer with the Service Employees International Union (SEIU) Airport Workers union and Phoenix Sky Harbor International Airport employee, said in a video posted Tuesday on social media.
"Minimum wage doesn't cover the cost of living. Many of my co-workers have to choose between food on the table or health insurance" Janae, Phoenix Sky Harbor Airport service worker No one should have to make that choice.
[image or embed]
— Airport Workers United (@goodairports.bsky.social) December 30, 2025 at 10:34 AM
"Many of my co-workers have to choose between food on the table or health insurance, or the choice between having food and paying the electric bill," van De Kerk—who advocates a $25 hourly minimum wage—continued.
"We shouldn't have to worry about those things," she added. "We shouldn't have to stress about those things. We're willing to work and we wanna work, and we should be paid for our work."
"Yes: We need a wealth tax on billionaires," said US Sen. Bernie Sanders.
US Sen. Bernie Sanders on Tuesday endorsed an effort in California to impose a one-time tax on the wealth of the state's billionaires, a grassroots campaign that has drawn opposition from Democratic Gov. Gavin Newsom and powerful investors.
Sanders (I-Vt.) said the proposed ballot initiative, which is currently in the signature-gathering phase, "is a model that should be emulated throughout the country." The senator said he plans to introduce a proposal for a national wealth tax in the near future.
"In my view, in a democratic society, we cannot continue to tolerate a rigged economy in which 60% of our people live paycheck to paycheck—struggling to pay for housing, food, and healthcare while the top 1% now owns more wealth than the bottom 93%," Sanders said in a statement posted to social media. "We must not continue a trend in which, over the past 50 years, $79 trillion in wealth in our country has been redistributed from the bottom 90% to the top 1%."
Yes: We need a wealth tax on billionaires. pic.twitter.com/2OUwSos5De
— Bernie Sanders (@BernieSanders) December 30, 2025
If placed on the November 2026 ballot and approved by voters, the California Billionaire Tax Act would levy a single 5% tax on the wealth of the roughly 200 billionaires who reside in the state. Those subject to the tax would have the option of paying the amount owed all at once or over a period of five years.
Organizers say the measure would generate $100 billion in revenue, which the state could use to avert a looming healthcare crisis fueled by the unprecedented Medicaid cuts that US President Donald Trump and congressional Republicans enacted over the summer.
“California is facing massive federal healthcare cuts—$20 to $30 billion a year for the next five years," said Suzanne Jimenez, chief of staff of Service Employees International Union-United Healthcare Workers West, a top supporter of the proposed ballot initiative.
"The billionaire tax would raise dollar-for-dollar emergency funding of $100 billion through a one-time 5% tax on the worldwide net worth of California’s billionaires," Jimenez added. "Any reductions in state income tax would be negligible in comparison to the billions that will be raised by the billionaire tax. And billionaires would still be taxed at lower rates than were in effect under President Reagan."
"We need a tax system that demands that the billionaire class finally pays their fair share of taxes."
Last week, California Attorney General Rob Bonta formally issued the title and summary of the proposed initiative as prominent billionaires—including Peter Thiel and Larry Page—threatened to leave the state over the measure, which would apply retroactively to those living in California as of January 1, 2026. Thiel is facing a potential $1.2 billion tax, while Page would have to pay roughly $12 billion.
The New York Times reported last week that Newsom, "who has been close with people like Mr. Page, is raising money for a committee to oppose the measure."
"The committee received a $100,000 donation from the venture capitalist Ron Conway in November, according to state campaign finance records," the Times added.
Other lawmakers from the state are supporting the measure, including US Rep. Ro Khanna (D-Calif.), who represents Silicon Valley.
Sanders, in his Tuesday statement, applauded Khanna, saying he is "absolutely right to support this effort."
"From a moral, economic, and political perspective, our nation will not thrive when so few own so much while so many have so little," said Sanders. "We need a tax system that demands that the billionaire class finally pays their fair share of taxes."
Fellow democratic socialists Alexandria Ocasio-Cortez and Bernie Sanders will feature prominently in the swearing-in of New York City's next mayor.
Democratic New York City Mayor-elect Zohran Mamdani's inauguration Thursday will feature luminaries of the left including US Sen. Bernie Sanders and Congresswoman Alexandria Ocasio-Cortez, who will gather to swear in the democratic socialist in a location befitting a candidate who ran on a transit-forward platform.
Mamdani will be officially sworn by Democratic New York Attorney General Letitia James during a private ceremony attended by members of his family in the abandoned—but well-preserved—Old City Hall subway station, Streetsblog first reported.
"When Old City Hall Station first opened in 1904—one of New York’s 28 original subway stations—it was a physical monument to a city that dared to be both beautiful and build great things that would transform working peoples’ lives," Mamdani said in a statement.
"That ambition need not be a memory confined only to our past, nor must it be isolated only to the tunnels beneath City Hall: It will be the purpose of the administration fortunate enough to serve New Yorkers from the building above," he added.
Mamdan ran on a platform of fare-free city buses—to be funded by tax hikes on corporations and wealthy individuals—improved public transit performance, sustainability and emissions reduction, technology-enhanced mobility, and multimodal integration.
"When I take my oath from the station at the dawn of the New Year, I will do so humbled by the opportunity to lead millions of New Yorkers into a new era of opportunity, and honored to carry forward our city’s legacy of greatness," Mamdani said.
Mamdani is set to be ceremoniously sworn in at a 1:00 pm public event at City Hall alongside incoming Comptroller Mark Levine and reelected Public Advocate Jumaane Williams, both Democrats. CNN reported Tuesday that Mamdani will be introduced by Ocasio-Cortez (D-NY).
“For the many New Yorkers who have long felt betrayed by a broken status quo, Congresswoman Alexandria Ocasio-Cortez embodies a new kind of politics that puts working people at the heart of it,” Mamdani said in a statement.
“I’ve been so proud to count her as a partner across the many stages of our people-powered movement—from the primary campaign to our Forest Hills rally in October to the very first day of the transition—and I’m honored that she’ll be a part of our historic City Hall inauguration," he added.
Sanders (I-Vt.) will subsequently administer the oath of office to Mamdani.
“His victory is not just about one city or one election, it is about the strength of a working-class movement that says unequivocally: The future of New York belongs to the people, not the billionaire class," Sanders said last week of Mamdani. "It is my honor to swear him in as the next mayor of New York City.”
Streetsblog reported that the ceremonial inauguration will take place alongside a car-free block party on Broadway.
While Republicans—and plenty of so-called "moderate" Democrats—are unnerved by the prospect of Mamdani's mayordom, a recent Rasmussen survey found that a majority of all US voters under the age of 40 want a democratic socialist to be the next president of the United States.
"A significant majority of Americans are sick of the neoliberal 'let the rich run things because they know best' bullshit that Republicans, 'tech bros,' and a shrinking minority of on-the-take Democratic politicians embrace," frequent Common Dreams opinion contributor Thom Hartmann wrote last week.
"The exploding popularity of progressive politicians from Zorhan Mamdani to Bernie Sanders, [Democratic Texas Congresswoman] Jasmine Crockett, and Alexandria Ocasio-Cortez aren’t an anomaly," he added, "they’re a signpost to both electoral and governing success for the next generation of genuinely progressive Democratic politicians."