Federal Minimum Wage Stays the Same for 16th Year as Billionaire Wealth Increases

As of January 2, 2026, the federal minimum wage in the United States remains locked at $7.25 per hour, unchanged for 16 consecutive years. This stagnation sharply contrasts with the immense wealth growth of billionaires, who collectively gained $2.2 trillion in 2025, with eight individuals accounting for about 25% of this increase. Such disparities illustrate the widening economic gap between the ultra-wealthy and average American workers.

While the federal minimum wage has not budged since 2009, 19 states raised their minimum wages on January 1, 2026, positively affecting over 8.3 million workers and adding roughly $5 billion to their earnings overall. Notable increases included Hawaii’s jump from $14 to $16 and New York City’s rise to $17. However, these state-level efforts do not mitigate the diminishing purchasing power faced by low-wage earners nationwide.

Economic studies suggest that raising the federal minimum wage to $15 by 2024 would elevate pay for nearly 40 million workers, providing a significant economic boost. Advocacy groups, such as the “Fight for $15” movement initiated in 2012, continue to press for federal wage reforms. Additionally, legislative proposals like the Ultra-Millionaire Tax Act of 2021 seek to tackle wealth inequality by imposing taxes on the wealthy.

The ongoing freeze of the federal minimum wage amid soaring billionaire wealth highlights a pressing need for comprehensive reforms aimed at ensuring fair wages for all workers while addressing the growing economic divide in the United States.