U.S. Vice President-elect Kamala Harris (L) looks on as U.S. President-elect Joe Biden (R) delivers remarks on January 08, 2021 in Wilmington, Delaware.
Chip Somodevilla | Getty Images News | Getty Images
The federal minimum wage is poised to get its first update in more than a decade.
President-elect Joe Biden on Thursday released a proposal saying that he will call on Congress to boost the federal minimum wage to $15 per hour from the current $7.25 per hour. The federal minimum wage has not been increased since 2009.
The call to raise the federal minimum wage is part of a larger $1.9 trillion coronavirus aid package called the American Rescue Plan aimed at helping boost the U.S. economy from the damage of the pandemic.
More from Invest in You:
How to reset your finances and become smarter about money
This lender wants to close the racial wealth gap
This critical link could help bridge America’s racial wealth gap
“Hard-working Americans deserve sufficient wages to put food on the table and keep a roof over their heads, without having to keep multiple jobs,” the incoming Biden administration wrote in a briefing paper distributed prior to the speech. “But millions of working families are struggling to get by.”
Raising the minimum wage to $15 per hour, as well as ending the tipped minimum wage and sub-minimum wage for people with disabilities will help ensure that workers across the country can provide for their families, according to the briefing.
The administration also pointed out that boosting the minimum wage will help workers at the forefront of the pandemic, 40% of whom are people of color.
There’s widespread support for a boosted minimum wage — two-thirds of Americans support a raise to $15 an hour, according to a 2019 survey from the Pew Research Center.
In addition, a number of states have already passed laws bringing the local minimum wage to $15, including California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, New York and Florida, which became the latest state to pass such a law during the November presidential election.
This is a breaking news story. Please check back for updates.
SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox.
CHECK OUT: How a 28-year-old managed to retire early and earn $16,000 a month in passive income via Grow with Acorns+CNBC.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.