California Gov. Gavin Newsom announced on July 31 that California’s minimum wage would increase to $17.40 per hour beginning in January 2027, up from $16.90.

At the same time, Newsom criticized the Trump administration and Republicans over the national minimum wage rate, which has been set at $7.25 per hour since 2009.

Congress has not voted to increase the federal minimum wage since July 2009, although several bills have been introduced. One percent of the workers in the country earn the federal minimum wage of $7.25 per hour, according to the most recent data from the U.S. Bureau of Labor Statistics.

“For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations,” Newsom said in a press release.

“California has chosen a different path—one that rewards work, grows the economy, and puts working families first. We believe if you work hard, you deserve a decent paycheck. They think $7.25 an hour is enough. We don’t.”

The White House didn’t respond to an email seeking comment.

President Donald Trump has promoted policies enacted during his second term as benefiting hourly workers.

The One Big Beautiful Bill Act included provisions that took away taxes on tips, overtime, and Social Security.

The White House said that on average, Americans will receive about $1,300 more per year from the measure eliminating taxes on tips. And the bill was retroactive so the estimated 6 million workers who report tipped wages would receive money back for wages earned in 2025.

Newsom said the California plan would give his state the highest minimum wage of any state.

There are currently higher minimum wages in Washington as well as some local municipalities that can set their own minimum wage rates per state law. Sixty-nine such local municipalities have set minimum wages above their state rates, according to the Economic Policy Institute.

Washington’s minimum wage increased from $17.95 per hour to $18.40 per hour in July.

The city of Emeryville, California, increased its minimum wage to $20.34 per hour in July.

In May, a federal bill was proposed that would increase the minimum wage to $25 per hour by 2031.

In June 2025, Sen. Josh Hawley (R-Mo.) introduced the Higher Wages for American Workers Act of 2025, which would have increased the federal minimum wage to $15 per hour. It was introduced and referred to the Committee on Health, Education, Labor, and Pensions, but it failed to move out of committee.

“Here’s a simple proposal: MORE deportations for illegals—and higher WAGES for Americans,” Hawley posted on X at the time.