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minimum wage
To End 'New Gilded Age,' House Progressives Unveil Bill to Raise Federal Minimum Wage to $25 Per Hour
"We need an economy that reflects the realities of 2026, not one stuck over a decade ago," said the newly sworn-in Rep. Analilia Mejía, who helped lead the campaign to raise wages in her home state of New Jersey.
Apr 28, 2026
A pair of progressive Democrats unveiled a bill on Tuesday that would raise the federal minimum wage to $25 per hour, considered the bare minimum a single adult needs to meet the cost of living in much of the US.
The Living Wage For All Act is the first bill to be introduced by the newly sworn-in Rep. Analilia Mejía (D-NJ), who won a special election earlier this month after helping to lead the fight for a $15 minimum wage in her home state of New Jersey.
Citing data from MIT's Living Wage Calculator, the Living Wage For All campaign backing the legislation argues that $25/hour is needed for a single adult in most parts of the country to afford basic necessities like housing, food, and healthcare.
As the cost of living has skyrocketed over the past decade and a half, the federal minimum wage has remained frozen at $7.25 and hour since 2009.
"This is unacceptable," Mejía said. "We need an economy that reflects the realities of 2026, not one stuck over a decade ago."
The bill is cosponsored by Rep. Delia Ramirez (D-Ill.), the daughter of Guatemalan immigrants who, she said, worked multiple minimum-wage jobs just to get by.
“I remember being in the fourth grade, and my mom talked about her job, and she was getting paid $4.75 an hour,” the 42-year-old congresswoman said during a press conference on Capitol Hill Tuesday. “Yet the federal minimum wage is barely $7.25, many years later.”
"Today, as we think about companies reporting record high earnings, working people are still struggling to survive," she said. "People are working full-time jobs and still cannot afford to live."
A USA TODAY survey from January found that around 40% of workers say their paychecks have not grown enough to meet the rising cost of living, which has been further exacerbated by spiking inflation caused by President Donald Trump's erratic tariff regime and war in Iran. Another survey conducted by Resume Now in April found that about half of workers fear their wages will never catch up to the cost of living.
While some states and cities have gradually raised their minimum wages above the federal level and have seen modest declines in poverty as a result, none have been raised to the point of being considered a living wage.
The bill introduced by Mejía and Ramirez would similarly phase in its increase to the federal minimum wage over more than a decade, with larger employers leading the transition.
Companies with more than $1 billion gross revenue or more than 500 employees would be scheduled to increase their minimum pay to $25/hour by 2031, while smaller employers would be on a longer timeline to reach $25/hour by 2038.
To ensure wages don’t lag again in the following years, the bill also requires the minimum wage to automatically grow each year to reach the equivalent of two-thirds the national median hourly wage. It also eliminates the subminimum wage, which is paid to tipped workers, youth workers, and workers with disabilities.
The bill is almost certainly dead on arrival in a Republican-controlled Congress. Even if Democrats retake both chambers come November, it would likely face an uphill battle to pass.
In 2021, the last time Democrats had a governing trifecta, eight centrist members of the Democratic caucus killed an amendment by Sen. Bernie Sanders (I-Vt.) to include a $15/hour minimum wage in then-President Joe Biden's post-Covid budget reconciliation package, the American Rescue Plan.
But as Democrats seek to address rising fears about America's "affordability" crisis, Saru Jayaraman, the president of One Fair Wage, said politics are starting "to catch up to reality."
"Across the country—from California to the Midwest to the East Coast—workers are organizing for $25 and $30 because that is what it takes to live," she said. "The polling shows this is not just popular, it is necessary."
“We cannot talk about affordability without talking about what people are paid,” added Stuart Appelbaum, the president of the Retail, Wholesale, and Department Store Union.
More than 20 Democrats have signed onto the bill as cosponsors, including Congressional Progressive Caucus Chair Greg Casar (D-Texas) and Rep. Ro Khanna (D-Calif.).
The effort is being spearheaded by the Living Wage For All Coalition, a national collective of labor unions, civil rights groups, and other economic justice organizations that are simultaneously pushing legislation to adopt a living wage in states like New York, Illinois, and Maryland, and municipalities such as Los Angeles and Washington, DC.
April Verrett, the international president of the Service Employees International Union, which has more than 2 million members across North America, said that “the introduction of the Living Wage for All Act is a powerful testament to the worker-led movement that is forcing a new baseline for livable wages.”
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Trump's DoorDash Grandma 'No Tax on Tips' Stunt Was Beyond Tacky
The staged photo op was actually a good reminder of the gap between the White House’s rhetoric and reality.
Apr 26, 2026
There is little doubt that most of the benefits of President Donald Trump’s One Big Beautiful Bill Act flow to the wealthy. But the White House has put considerable effort into promoting the idea that the law benefits working class people too, in particular those who earn tips.
To drive that point home, they staged an April 13 photo op with a DoorDash delivery to the White House. But the stunt was actually a good reminder of the gap between the White House’s rhetoric and reality.
First, it helps to understand that the "no tax on tips" policy applies to very few workers; less than 3% of workers are tipped. And its effects are even narrower than that. The policy is actually a deduction (topping out at $25,000) that can be claimed by tipped workers to lower their taxable income. But many tipped workers—about 1 in 3, or possibly close to 40%—do not earn enough to file taxes, so this deduction does them no good.
Now on to the White House event. When DoorDash driver Sharon Simmons "delivered" his McDonald’s order, President Trump commented that she “picked up an extra $11,000” because of the new policy. As Paul Waldman (and others) noted, this was mathematically dubious, given the $25,000 cap on the deduction. Indeed, Simmons would later explain that she earned $11,000 in tips, not that she saved that amount of money on her taxes. How much she saved on her taxes is unclear; by one high-end estimate, if she were paying a 24% tax rate she would have saved just $2,640.
If the goal of these kinds of policies are to provide some relief for workers—especially those earning a low wage—there are plenty of other options that would apply more broadly. Raising the minimum wage, for example, or eliminating the subminimum "tipped" wage would put more money in more workers’ pockets.
Speaking just after the White House photo op—and at a different "no tax on tips" event—Trump said the photo op was “a little tacky.” Given that Simmons is making DoorDash deliveries to pay for her husband’s cancer treatments, and the fact that his signature tax cut bill slashes food assistance and will cause millions to lose their health insurance coverage, "tacky" is an understatement.
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DoorDash Grandma Delivering to Trump Doesn't Change That No Tax on Tips Is a 'Deceptive Ploy'
"The fact that a term like 'DoorDash grandma' exists should be a wake-up call," said the head of One Fair Wage. "It should never exist in the first place."
Apr 13, 2026
While "DoorDash Grandma" made the company's first food delivery to the White House on Monday to promote President Donald Trump's "no tax on tips" policy, the awkward encounter outside the Oval Office not only highlighted critiques of that provision of the GOP budget package but also sparked calls for a living wage and universal healthcare.
"A perfect image of the Trump era: A grandmother has to work at DoorDash in order to get by, while the president decorates his office in gold accent pieces," said Democratic strategist Max Burns, sharing a photo of the delivery on social media.
Saru Jayaraman, president of worker advocacy group One Fair Wage, told Common Dreams that "it's sad, and it's a sign of a failing society—not something to celebrate or turn into a photo op. We've normalized an economy where older people are pushed into gig work just to survive. The fact that a term like 'DoorDash grandma' exists should be a wake-up call. It should never exist in the first place."
"Corporations are paying poverty wages while policymakers offer Band-Aid solutions like 'no tax on tips' instead of paying a living wage," Jayaraman continued. "At the same time, cuts to Medicaid and food assistance are stripping away the safety net workers rely on to get by. This is all pushing people into greater dependence on tips and unstable income. Workers don't need gimmicks—they need living wages, corporate accountability, and real economic security."
Trump and then-Vice President Kamala Harris latched on to the no tax on tips policy during the 2024 campaign, despite warnings from economists and others that it is a "deceptive ploy," as the Economic Policy Institute's David Cooper and Nina Mast put it last year.
"It does nothing to address the low wages, income instability, wage theft, and abuse tipped workers already face," the pair reiterated in February. "Instead, it may undermine efforts to raise tipped minimum wages, push more workers into tipped jobs, increase workloads, and prompt customers to tip less if they believe tipped workers receive special tax treatment."
After related legislation passed the US Senate last year, Jayaraman said that "for all the bipartisan celebration, this bill is a distraction from the real fight... If Democrats want to offer a true alternative, they need to say it loud and clear: It's time to raise the minimum wage and end the subminimum wage once and for all."
A no tax on tips policy was ultimately included in Republicans' so-called One Big Beautiful Bill Act—which, as a recent Institute on Taxation and Economic Policy analysis details, featured tax breaks that primarily benefited wealthy individuals and corporations while cutting programs that serve working families, such as Medicaid and the Supplemental Nutrition Assistance Program.
Specifically, last year's GOP budget package established a temporary federal income tax deduction for tips, capped at $25,000 per year, through 2028. In a February report, the libertarian Cato Institute estimated that "the roughly 3% of tax returns projected to claim the tips deduction in 2026 will receive an average tax cut of about $1,370," and "as a share of after-tax income, the tips deduction broadly benefits those in the middle of the income distribution."
"These provisions also add to the already large number of tax deductions and credits that shield vastly uneven amounts of income from taxation based on family size and childcare arrangements," the Cato report notes. "In addition to the income limits, the tips deduction is only available to occupations that 'customarily and regularly received tips' before 2025."
Sharon Simmons, who wore a red shirt that read "DoorDash Grandma" while delivering McDonald's bags at the White House on Monday, told Trump that she benefited from the policy. In a statement, the company identified her as an Arkansas-based grandmother of 10 who "started dashing in 2022 to earn income while keeping control of her schedule."
During the delivery, the president asked Simmons whether she voted for him—"uh, maybe," she said—and about banning transgender women from competing in sports in line with their gender identity, on which she said she did not have an opinion.
Labor reporter Michael Sainato pointed out that Simmons previously lived in Nevada and advocated for the no tax on tips policy to the US House Ways and Means Committee last year. He also questioned her comments to Trump about having saved over $11,000 on her most recent tax bill.
The dasher claims "$11,000 in savings by not having to claim." You still have to claim tipsYou can only deduct up to $25k in tips, so $11k in savings off of one year didn't happenThe tax savings are actually minimal taxpolicycenter.org/fiscal-facts...
[image or embed]
— Michael Sainato (@msainato.bsky.social) April 13, 2026 at 3:39 PM
While Trump staff and congressional Republicans shared footage of Simmons' delivery to Trump to promote the budget package provision in the lead-up to tax day, US Rep. Dina Titus (D-Nev.) stressed on social media Monday that the president's "policy is severely limited and sunsets in 2028."
"We must make it permanent and increase the minimum wage to support our nontipped workers like childcare, fast food, and retail. We can do both by passing my LIFT Act," said Titus, whose Labor Income Fairness and Transparency Act is backed by One Fair Wage.
"Cutting taxes on tips might make for a good sound bite, but on its own, it's a hollow fix that ignores the real crisis: Wages so low that two-thirds of restaurant workers don't even earn enough to pay federal income taxes," Jayaraman said last year, when Titus introduced the bill. "In a time of skyrocketing costs, workers are drowning and need more than political gimmicks—they need a raise."
"Tips should be a bonus, not a substitute for a living wage," she argued. "By ending all subminimum wages and requiring that all workers be paid a full livable wage with tips on top, the LIFT Act addresses what working people need most: a fair wage, a level playing field, and the dignity that comes with being able to provide for their families."
Some observers on Monday also noted Simmons' appearance on Fox News, during which she acknowledged the financial burden of her husband's 2025 cancer diagnosis.
"Grandma shouldn't have to rely on DoorDash tips to make up for Republicans doubling the cost of healthcare," declared Democrats on the House Ways and Means Committee, sharing a clip of the interview on social media.
Melanie D'Arrigo, executive director of Campaign for New York Health, which advocates for universal, single-payer healthcare, emphasized that "'no tax on tips' does not make up for the fact that no one can afford healthcare."
Historian Timothy Snyder said, "So let’s have universal healthcare and help people live in dignity."
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