The One Big Beautiful Bill approved by Trump last July 2025 in the United States includes provisions to raise the minimum wage at the state level (not federal), aiming to achieve a balance between Americans’ economy and the exponential cost of living since the introduction of tariffs. The goal is to regulate wage inequality between states, but it leaves the decision to the states themselves.
As a result, the average figure remains irregular, with the states with the highest wages being California, New York, and Washington. Illinois, Delaware, Maryland, and Massachusetts are also expected to see an increase in November 2025. Therefore, workers should be aware of the official figures set in their state to ensure their rights are upheld according to federal law guidelines.
One Big Beautiful Bill
Enacted on July 4, 2025, in the United States by Donald Trump, the One Big Beautiful Bill Act is a federal law which covers a range of fiscal and spending policies. It aims to implement permanent tax cuts, increase defense spending, strengthen immigration policies, and support traditional industry. Additionally, it also reverses advances made by Biden in the previous legislature, such as the Inflation Reduction Act, prioritizing reindustrialization and traditional energy over green incentives.
Changes in the minimum wage in the United States
One of the aspects also addressed by this federal law is the increase of the minimum wage, which has remained unchanged for a considerable time. The One Big Beautiful Bill aims for these amounts to rise in order to reduce inequality between different regions, as well as to alleviate the impact of the high cost of living. However, it leaves all the responsibility to the states, which are the ones that have to implement this change. This minimum wage increase aims to:
- Raise the minimum income threshold for entry-level workers.
- Reduce income inequality between regions.
- Promote job retention and increased consumer spending.
- Help workers cover their daily expenses.
States have taken action
Gradually, and as far as their capabilities allow, the states have begun the necessary work to raise the minimum wage for their workers and adjust their economic conditions. The states leading the way are:
- California. With an average hourly wage of $16.50.
- New York. Average wage of $16.50 per hour, and even higher in some regions.
- Washington. Has managed to raise the rate to $16.66 per hour in practically the entire state.
Additionally, other states expect that this November 2025 there will be an increase to $15 per hour or more, including Maryland, Delaware, Massachusetts, and Illinois.
What role do workers play?
Workers in each state need to be aware of the changes happening in their region, with the goal of ensuring that their rights are being upheld and that they are not being paid below what is established by law, and ensure that the base salary plus tips meet the new threshold. However, they should remember that the federal minimum wage will remain $7.25 per hour, as the changes from the One Big Beautiful Bill are at the state level.
