Federal minimum wage could rise to $25 under new proposal aimed at tackling rising living costs

A group of Democratic lawmakers in the United States has introduced new legislation that would gradually raise the federal minimum wage from $7.25 an hour to $25 over the next decade.

The proposal, called the Living Wage for All Act, would mark the first federal minimum wage increase since 2009 if approved by Congress.

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Under the plan, large employers with more than 500 workers would need to increase wages in stages until reaching $25 an hour by 2031.

Smaller businesses would be given until 2038 to fully comply with the changes.

The legislation would also tie future minimum wage increases to broader wage growth across the economy, reducing the need for repeated congressional action.

Supporters of the bill argue the current federal wage no longer reflects the rising cost of living in the United States.

They point to increasing prices for housing, food, healthcare and transportation as major pressures on low-income workers.

One of the bill’s sponsors, Chuy García, said working families continue to face growing financial strain while corporate profits rise.

Critics, however, warn that a significant rise in labour costs could force some businesses to cut jobs, reduce working hours or raise prices.

More than 30 US states already have minimum wages above the federal level.