This bill raises the federal minimum wage through a phased increase starting in 2026. It begins at 10.59 dollars per hour and increases by 4 dollars annually through 2030. After 2030, Labor Department adjusts the wage every seven years using a formula tied to living costs for a family of four to remain above poverty.
Latest Action
Referred to the House Committee on Education and Workforce.
AI Summary
Plain-English explanation of this bill
This bill raises the federal minimum wage through a phased increase starting in 2026. It begins at 10.59 dollars per hour and increases by 4 dollars annually through 2030. After 2030, Labor Department adjusts the wage every seven years using a formula tied to living costs for a family of four to remain above poverty.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>Original Living American Wage Act or the Original LAW Act</strong></p><p>This bill increases the federal minimum wage according to a formula specified in the bill.</p><p>First, the bill increases the minimum hourly wage to $10.59 beginning on January 1, 2026, and increases the minimum hourly wage by $4 annually from January 1, 2027, through January 1, 2030.</p><p>Next, beginning on January 1, 2031, the Department of Labor shall increase the minimum hourly wage every seven years according to a specified formula. </p><p>The formula establishes the minimum hourly wage as the wage sufficient for a person working 1,799 hours per year (approximately 35 hours per week) to earn an annual income that is 40% higher than the federal supplemental poverty threshold for a renter family of four, with two children under the age of 18, as published by the Bureau of Labor Statistics for the preceding year. However, if this formula results in a reduction, the minimum hourly wage may not be lowered. </p>
Key Points
Main provisions of the bill
Phases in minimum wage increases starting at 10.59 dollars in 2026
Adds 4 dollars annually through 2030
Links post-2030 wage to family of four living costs
Sets wage at 40 percent above poverty threshold
Adjusts every seven years using Labor Department formula
How This Impacts Americans
Potential effects on citizens and communities
Low-wage workers would see significant pay increases over several years. A family of four would be able to stay above poverty with one full-time minimum wage earner. Businesses would face higher labor costs, particularly in states with lower current minimum wages.
Policy Areas
Primary Policy Area
Labor and Employment
Related Subjects
Housing finance and home ownership
Labor standards
Wages and earnings
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
122, 119th Congress (2025). "Original LAW Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-122