Arlington, VA – Today, Senator Josh Hawley (R-MO) announced he will introduce legislation aimed at raising the federal minimum wage to $15 an hour. The legislation, titled the “Higher Wages for American Workers Act,” would reportedly raise the minimum wage beginning in 2026, and index additional increases to inflation on a yearly basis afterwards.
A report published by the Employment Policies Institute (EPI) shows that a federal $15 an hour minimum wage would result in over 800,000 lost jobs across the country, with over 6,000 jobs lost in Hawley’s home state of Missouri alone. EPI’s analysis aligns with estimates from the Congressional Budget Office.
“Sen. Hawley should know better,” said Rebekah Paxton, research director at EPI. “This proposal would more than double the minimum wage and slash over 800,000 jobs. An overwhelming majority of economists agree that drastic minimum wage hikes cut employment, limit opportunities for workers, and shutter businesses. Hawley’s proposal would take similar failed policies like California’s and export them nationwide.”
Background:
- Recent wage hike proposals have failed across the country. For example, in the 2024 elections, California rejected an $18 an hour minimum wage—the first wage proposal to fail in state history, and the first to fail nationally in 30 years.
- The rejection came shortly after the state raised the fast food minimum wage to $20 an hour. Residents quickly saw the negative impacts, currently totaling over tens of thousands of lost jobs.
- A $15 wage would cost over 6,000 jobs in Missouri alone.
- A survey of economists revealed that a strong majority (62%) oppose raising the rate to $15 an hour, with most of this group (50%) “strongly” opposing the raise.
- The states hit hardest by a $15 wage include: Texas, Ohio, Pennsylvania, North Carolina, and Michigan.
- The Congressional Budget Office shows that a $15 federal minimum wage would increase the deficit by $54 billion.
According to the CBO, a $15 federal wage will also cost 500k more people to lose their jobs than it will pull out of poverty.