Raising the wage floor would help millions of workers, reduce poverty, and strengthen the economy.
Did you know that the federal minimum wage has been stuck at $7.25 since 2009, the longest stretch without an increase since the federal wage floor was created?
That means the lowest-paid workers have gone 17 years without a raise from Congress, while the cost of food, rent, transportation, and health care have continued to climb.
Oxfam has been fighting for economic justice and workers' rights for decades as part of our mission to fight inequality. So we're going to explain why the minimum wage should be raised, how a higher wage floor would help workers and families, and why raising the minimum wage is good for the economy. We also look at who would benefit most, why the federal minimum wage is so low, and what people can do now to support a stronger wage floor.
When was the last time the minimum wage was raised?
The last time the federal minimum wage was raised was in 2009, when it increased to $7.25 an hour. Since then, Congress has allowed the federal wage floor to sit unchanged, even as prices have risen, and workers’ purchasing power has fallen.
That failure helps explain why the federal minimum wage is so low today. While many states have raised their minimum wages above the federal floor, even the highest state minimum wage is not enough to support a family.
The Economic Policy Institute (EPI) finds that the federal minimum wage is now at its lowest real value in 77 years.
What are the benefits of raising the minimum wage?
Raising the minimum wage would increase pay for millions of workers, reduce poverty and economic hardship, help narrow racial and gender pay gaps, strengthen local economies, and restore some of the purchasing power the federal minimum wage has lost.
Here’s how.
1) It would help millions of low-wage workers
Raising the federal minimum wage to $17 by 2030 would affect more than 22 million workers, or about 15% of the U.S. wage-earning workforce. EPI estimates the policy would provide $70 billion in additional annual wages for the country’s lowest-paid workers, with the average affected year-round worker receiving about $3,200 more per year.
2) It would address longstanding racial and gender inequities
Women and workers of color are overrepresented in jobs paying less than $17 an hour, according to Oxfam research. EPI estimates that women would make up 57.2% of workers affected by the Raise the Wage Act of 2025, while Black and Hispanic workers would also benefit disproportionately. Raising the minimum wage and ending the subminimum tipped wage would help reduce these structural disparities.
3) It would reduce poverty
Research also showed that minimum wage increases significantly reduce poverty. The need is urgent. In 2024, 35.9 million people lived in poverty in the U.S. A stronger wage floor will not end poverty on its own, but it is a powerful tool policymakers can use to raise incomes for workers who are paid too little.
4) It would reduce food insecurity and economic hardship
Low wages force families to make impossible choices between food, rent, child care, health care, and other needs. USDA found that 13.7% of U.S. households, or 18.3 million households, were food insecure at some point in 2024. Raising the minimum wage would not solve hunger by itself, but it would put more income in the hands of workers who are most likely to spend it on basic needs.
5) It would help workers in every state
A stronger federal wage floor matters because state and local protections are uneven. EPI notes that 20 states are still tied to the $7.25 federal minimum wage. That’s roughly 55 million workers who are in states where the federal wage floor continues to shape low wages. A national standard would help ensure workers are not left behind just because they live in a state that has not raised its own wage floor.
6) It would fuel economic growth
Why is raising minimum wage good for the economy? Because low-wage workers are likely to spend additional income on everyday needs, and that spending flows back into local communities and businesses. By EPI’s estimates, raising the minimum wage to $17 by 2030 would provide $70 billion in additional annual wages to low-paid workers.
The vast majority of Americans want the minimum wage to be raised
Public support for raising the minimum wage is broad. Pew Research Center found in 2021 that 62% of U.S. adults favored raising the federal minimum wage to $15 an hour, including 40% who strongly supported the idea. Only one in 10 Americans said the federal minimum wage should stay at $7.25 an hour, according to the same Pew survey.
The policy debate has moved beyond $15 because inflation has eroded the value of that benchmark. The Raise the Wage Act of 2025 would raise the federal minimum wage to $17 by 2030 and index future minimum wage increases to ensure that the value of the minimum wage does not erode over time.
What action can you take now?
Raising the minimum wage is a policy choice. Congress can raise the federal wage floor and eliminate subminimum wages. This policy change can help workers and their families thrive, while reducing inequality in our economy.
You can help by learning more about how low wages affect workers and families, sharing this information with your community, and urging elected officials to support a stronger federal minimum wage.
