Jan 27, 2026
For workers in 19 states, the new year brought with it a pay bump in the form of increases to the minimum wage.
According to the Economic Policy Institute (EPI), more than 8.3 million U.S. workers will benefit from minimum wage hikes that went into effect on Jan. 1 (1).
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Of the 19 states that raised their minimum wage at the start of this year — a mix of both Republican- and Democrat-led states — two did so because of ballot measures, four because of new legislation and 13 because of inflation adjustments.
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A poll conducted by Ipsos on behalf of Reuters found that 68% of respondents supported minimum-wage increases, including 90% of those who identified as Democrat and 49% of those who identified as Republican (2).
There are now 30 states that have enacted a higher minimum wage than the federal minimum wage of $7.25 an hour, which hasn’t been raised since 2009.
The minimum wage increases come as affordability remains a major issue for many Americans. A survey commissioned by think tank The Century Foundation found that 64% of respondents opted for cheaper groceries or buying less food in the past year, while 34% admitted to skipping a meal (3). Furthermore, 29% of respondents said they delayed or went without medical care in the past year, and 48% said they tapped their savings to cover routine expenses.
Debate over the impacts
A report from The Wall Street Journal notes that economists are split on the impacts of raising the minimum wage (4). Some argue it reduces poverty and is beneficial for workers, while others say that it hurts businesses and causes job losses or higher prices.
A review of studies on minimum wage increases, co-authored by one of EPI’s members in 2024, showed the majority of them found “no job losses or only small disemployment effects (5).”
Economist Michael Reich told The Journal that price hikes resulting from wage increases are not always large, citing California’s 2024 increase to fast-food chain wages, which he says saw employee turnover decrease. A column about the subject he co-authored in CalMatters argues, in modern times, fast food restaurants have kept wages and employment levels low, anyway (6).
Economics professor David Neumark told the publication that minimum wage increases result in job losses because businesses do not have many ways to offset the increase in labor costs. A study by the Congressional Budget Office from 2023 predicted that raising the federal minimum wage to $17 by 2029 would mean an estimated 900,000 jobs lost by 2030 (6).
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Raises to minimum wage
Here’s a summary of states that raised their minimum wage on Jan. 1.
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- Arizona: $15.15
- California: $16.90
- Colorado: $15.16
- Connecticut: $16.94
- Hawaii: $16
- Maine: $15.10
- Michigan: $13.73
- Minnesota: $11.41
- Missouri: $15
- Montana: $10.85
- Nebraska: $15
- New Jersey: $15.92
- New York: $16, except $17 for New York City, Long Island and Westchester
- Ohio: $11
- Rhode Island: $16
- South Dakota: $11.85
- Vermont: $14.42
- Virginia: $12.77
- Washington State: $17.13
Three other states — Alaska, Florida and Oregon — are also slated to increase their minimum wage in 2026.
Some cities and regions also have higher minimum wages than the federal or state levels. This can benefit workers who live in high-cost-of-living cities.
The EPI reports that 47 cities and counties increased their minimum wages, and the group notes that no county has a minimum wage that exceeds its own Family Budget Calculator, which it says measures a “modest yet adequate standard of living for families” in each metro area and county in the U.S. The report notes that “even outside of especially high-cost localities, strong minimum wage policies have set wage floors much closer to the living wage needs for workers.”
While some business interests and policymakers may contend that minimum wage increases hurt the economy, for those Americans who struggle to get by on the minimum wage, states or cities that pay higher minimum wages might be looking more appealing as the cost of living remains high.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Economic Policy Institute (1, 5); Ipsos (2); The Century Foundation (3); The Wall Street Journal (4); CalMatters (6)
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Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.
