Bill > HR122

This bill seeks to address poverty and low wages by reforming the federal minimum wage through several key provisions. The bill would incrementally raise the minimum wage from $10.59 in 2026 to $26.59 by 2030, and then establish a mechanism for future adjustments. Starting in 2031, the Secretary of Labor would be required to calculate the minimum wage every seven years using a formula that ensures a worker's annual income is 40% above the Federal supplemental poverty threshold for a four-person renting family with two children under 18. The bill cites alarming statistics about poverty in the United States, such as 37.9 million Americans living in poverty in 2022 and the current minimum wage being barely above the poverty line. The legislation also acknowledges that the average fair market rent for a one-bedroom apartment exceeds what a full-time minimum wage worker can afford, with the MIT Living Wage Calculator showing a median living wage of $26.59 per hour. Additionally, the bill includes a provision allowing states, territories, and local governments to establish higher minimum wage requirements, and recommends automatic adjustments when inflation rises 5% or more over two consecutive years. The overall goal is to ensure that minimum wage workers can earn a more livable income that provides greater economic security.