California to Raise Minimum Wage to $17.40 in 2027

California Gov. Gavin Newsom speaks at a press conference and bill signing in Oakland, Calif., on July 13, 2026. Heather Diehl /Getty ImagesCalifornia Gov. Gavin Newsom announced Friday that California’s minimum wage would increase to $17.40 an hour beginning in January 2027.At the same time, Newsom criticized the Trump administration and Republicans over the national minimum wage rate, which has been set at $7.25 an 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 an 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, according to 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.Trump has promoted policies enacted during his second term as benefiting hourly workers.The One Big Beautiful Bill included provisions that took away taxes on tips, overtime, and Social Security.Trump said in a post on X in May 2025 that the One Big Beautiful Bill package was “arguably the most significant piece of Legislation that will ever be signed in the History of our Country!”The White House said on average, Americans will receive about $1,300 more a year from no tax on tips. And the bill was retroactive so the estimated six million workers who report tipped wages would receive money back for wages earned in 2025.Newsom said the California plan would make his state the highest minimum wage in any state.There are currently higher minimum wages in Washington, D.C., as well as some local municipalities that can set their own minimum wage rates per state law. Sixty-nine such local municipalities that have set minimum wages above their state rate, according to the Economic Policy Institute.Washington, D.C.’s minimum wage increased from $17.95 per hour to $18.40 an hour in July.The city of Emeryville, California, increased its minimum wage to $20.34 an hour in July.In May, a federal bill was proposed that would increase the minimum wage to $25 an hour by 2031.In June 2025, Sen. Josh Hawley (R-Mo.) introduced the Higher Wages for American Workers Act of 2025 that would increase the federal minimum wage to $15 an hour. It was introduced and referred to the Committee on Health, Education, Labor, and Pensions, but 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.