The "Original Living American Wage Act" incrementally raises the federal minimum wage to $26.59 by 2030 and mandates automatic adjustments every seven years based on a formula tied to the poverty threshold for a renting family of four. This ensures a wage earner's income is at least 40% above the poverty line, and allows two full-time workers to earn above the national housing wage.
Al Green
Representative
TX-9
The Original Living American Wage (LAW) Act amends the Fair Labor Standards Act of 1938 to incrementally raise the federal minimum wage to \$26.59 an hour by 2030. Starting in 2030, the minimum wage will be reassessed every 7 years by the Secretary, using a formula to ensure a wage earner's income is at least 40% above the poverty threshold for a renting family of four. This adjustment aims to address poverty and ensure that minimum wage workers can afford basic needs like housing. The act also states that the federal minimum wage should be adjusted when inflation rises to 5% or more over 2 years.
Federal Minimum Wage Set to Hit $26.59 by 2030 Under New Bill, Adjusts Every 7 Years
The 'Original Living American Wage Act' (Original LAW Act) aims to significantly boost the federal minimum wage, reaching $26.59 per hour by 2030. This isn't just a one-time jump; the bill mandates adjustments every seven years to keep up with the cost of living and ensure wages stay well above the poverty line. Let's break down what this means in practice.
Making Ends Meet: The Wage Hike Timeline
The bill lays out a clear path to a higher minimum wage:
- January 1, 2026: $10.59/hour
- January 1, 2027: $14.59/hour
- January 1, 2028: $18.59/hour
- January 1, 2029: $22.59/hour
- January 1, 2030: $26.59/hour
After 2030, the minimum wage will be recalculated every seven years. The formula is designed to ensure a full-time worker (1,799 hours/year) earns 40% more than the supplemental poverty threshold for a family of four renting a home (SEC. 3). The Bureau of Labor Statistics data will be used for this calculation, grounding the increases in real-world economic conditions (SEC. 3). Importantly, the Secretary of Labor cannot lower the minimum wage, even if the formula suggests a decrease (SEC. 3).
Real-World Impact: Beyond the Numbers
This bill is directly tackling the issue of making sure people who work full-time aren't living in poverty. Currently, as the bill's findings point out (SEC. 2), a single minimum wage worker makes just $20 above the poverty line. For a two-person household, they're over $5,000 below it. Rent is a huge factor: a one-bedroom apartment typically costs more than 110% of a full-time minimum wage worker's monthly income (SEC. 2). This bill acknowledges that and aims to fix it.
Consider a cashier or a construction laborer currently earning the federal minimum wage. By 2030, their hourly pay would more than triple. This could mean the difference between constantly struggling to make rent and having some breathing room. It could also mean less reliance on public assistance programs.
The Bigger Picture and Potential Hurdles
While the bill aims to boost living standards, there are potential challenges. Businesses, particularly smaller ones, might reduce employee hours to offset the increased labor costs. Some might raise prices, which could, in turn, affect the cost of living. There's also the possibility, some businesses relocate to areas with lower labor costs or invest in automation to replace some jobs. It is important to recognize that the bill specifically states that states and local governments can set higher minimum wages (SEC. 2), so this is a federal floor, not a ceiling. The intent is clear: to ensure that work pays enough to live on, addressing a fundamental issue of economic fairness.