Minimum wage hike to go into effect for some across US
Workers in several states and cities will see minimum wage increases go into effect on January 1, 2025, as they continue to battle with high prices.
False videos circulating on social media crafted to look like news reports are claiming President Donald Trump raised the federal minimum wage to $25 per hour, effective this month.
If true, the change would mark a huge shift for the U.S. economy and American workers, but it is fake news. Congress has not approved an increase to the federal minimum wage for Trump to sign into law and the White House does not list an executive order or action from the president regarding the issue.
Lawmakers have introduced a few bills related to the federal minimum wage including Vermont Senator Bernie Sanders’ legislation that would raise it to $17 by 2030. However, none have made it through both the Senate and the House of Representatives, which they will need to do before ending up on Trump’s desk.
What do the false videos claim?
Several accounts shared the videos across social media platforms. One TikTok account posted two versions of the videos this week that received a combined 452,300 views and thousands of likes as of Tuesday afternoon.
“Donald Trump has just signed a groundbreaking law that will change the lives of millions,” a voice in the videos says. “The law will directly benefit workers in industries like hospitality, retail, construction, and service sectors, giving struggling families a long-awaited boost”
Some TikTok users were quick to call out the fake news, with some saying the voice in the videos sounds like it was created using AI. But a top commenter on one of the videos with more than 2,300 likes seems to believe what they heard, sparking a debate about whether the increase would drive up prices.
Trump administration says no to raising minimum wage
Trump said he would consider raising the minimum wage when he was still president-elect in December but has not made any moves to do so since his inauguration and his Treasury Secretary Scott Bessent responded with a clear “no” when asked if the administration would do so.
During Bessent’s confirmation hearing for the position, Sanders asked him if he would work to raise the federal minimum wage to a living wage.
“I believe that the minimum wage is more of a statewide and regional issue,” Bessent replied. When asked again, he said, “No, sir.”
For some American workers, the Trump administration actually lowered the minimum wage.
In March, the Labor Department said it would stop enforcing the $17.75 per hour minimum wage for federal contractors started under former President Joe Biden in 2021. Trump also issued an executive order eliminating collective bargaining to negotiate work conditions for agencies with national security missions, leading to a lawsuit from the union representing foreign service workers.
What is the federal minimum wage?
The federal minimum wage is currently $7.25 per hour and has been since 2009.
To get by in most states, the MIT Living Wage Calculator estimates the average single person needs to make about $45,000 a year, or $21.63 hourly assuming a 40-hour work week.
Most U.S. states, districts, and territories have established higher minimum wages above the federal rate for their residents but in 22 states and two territories, the federal minimum wage still applies.
Which states raised the minimum wage in 2025?
At the beginning of this year, 21 states established higher minimum wages and it’s set to rise in a few other states later in 2025, as the shift to $15 per hour picks up steam.
See below for the increases that took effect on January 1, 2025:
Contributing: Shelby Slade & C. A. Bridges
Reach Rachel Barber at rbarber@usatoday.com and follow her on X @rachelbarber_
