A Comprehensive Plan to Raise and Modernize the Federal Minimum Wage

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The federal minimum wage has been stuck at $7.25 an hour since 2009—over 15 years without an increase. During this time, the cost of living has soared, while wages for millions of working Americans have stagnated. According to the Economic Policy Institute, if the federal minimum wage had kept pace with productivity since the late 1960s, it would be over $21 an hour today. In Illinois, the minimum wage is $14 per hour (2024), but many neighboring states and millions of workers nationwide are still left behind.

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It’s time for bold, smart action. Here’s my plan:

1. Raise the Federal Minimum Wage to $17/hour by 2028

• Phased Increase: Gradually raise the federal minimum wage from $7.25 to $17 an hour by 2028, giving small businesses time to plan and adapt.

• Annual Adjustments: Index the minimum wage to inflation so it keeps up with the cost of living and never falls behind again.

• Regional Adjustments: Allow for cost-of-living adjustments in high-cost areas, ensuring wages reflect local realities.

2. Bridge the Gap for Tipped and Subminimum Wage Workers

• End the Subminimum Wage: Phase out the lower tipped minimum wage (currently $2.13 federally), so all workers receive the full minimum wage, plus tips.

• Protect Workers with Disabilities: Ensure that individuals with disabilities receive at least the federal minimum wage, ending outdated subminimum wage practices.

3. Support Small Businesses and Nonprofits

• Tax Credits & Grants: Provide targeted tax credits and transition grants to small businesses and nonprofits in rural or low-income areas to help them adjust to higher wage standards.

• Technical Assistance: Fund business development programs to help small employers improve efficiency, adopt new technology, and access new markets.

4. Close the Gender and Racial Wage Gaps

• Enforce Equal Pay Laws: Strengthen enforcement of wage discrimination laws. Women and people of color are disproportionately represented in low-wage jobs. The median Black worker earns 76 cents, and the median Latina earns just 58 cents, for every dollar earned by white men (Bureau of Labor Statistics, 2023).

• Promote Pay Transparency: Require larger employers to report wage data by race and gender to the Department of Labor, increasing accountability and closing wage gaps.

5. Invest in Workforce Development and Upward Mobility

• Expand Job Training: Increase federal investment in apprenticeships, job training, and career pathway programs so low-wage workers can move up to better-paying jobs.

• Support Childcare and Transportation: Provide subsidies for childcare and public transit, two of the biggest barriers for low-wage workers seeking and retaining employment.

6. Monitor Impact and Adjust Policy

• Create a Federal Wage Board: Establish a bipartisan wage board to review wage growth, employment, and business health, making data-driven recommendations for future adjustments.

• Track Outcomes: Publish annual reports on wage growth, poverty rates, and business health to ensure the policy is working for everyone.

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Why This Matters

Raising the minimum wage to $17/hour would lift pay for over 27 million workers nationwide (Economic Policy Institute, 2023), reduce poverty, and inject billions into local economies. In Illinois alone, hundreds of thousands would see a raise, helping families afford rent, groceries, and healthcare.

Together, We Can Build an Economy That Works for all, this plan is about dignity, fairness, and opportunity. By raising the minimum wage and bridging the gaps for all workers, we move closer to a future where hard work is always rewarded and no one is left behind.