$15 Minimum Wage Will Not Be Part of Covid Relief Bill

The Senate parliamentarian has determined that an increase in the federal minimum wage cannot be part of the Covid-relief bill.

Because the minimum wage is viewed as not having a direct impact on the budget, it will not be allowed to be used in the reconciliation bill.

Reconciliation allows a simple majority to pass a bill. Budget reconcilation has been used by past administrations including President Obama to pass the Affordable Care Act and by President Trump to pass tax relief.

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Democrats have made an increase in minimum wage (currently at $7.25) a priority, arguing that it has not been indexed for inflation. However, Republicans say that a higher minimum wage will hurt small businesses and have a negative effect on the number of jobs available.

According to a Congressional Budget Office analysis released last month, raising the minimum wage would result in the loss of 1.4 million jobs although, it would simultaneously lift 900,000 people out of poverty.

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