Politics has a funny way of making simple questions feel like a maze. You’d think the answer to "did Donald Trump raise the minimum wage" would be a straight yes or no. But since we’re talking about the federal government, nothing is ever that easy.
Honestly, the short answer is no. Donald Trump did not raise the federal minimum wage during his first term in office. It stayed stuck at $7.25 an hour, which is where it’s been sitting since 2009. That’s the longest the U.S. has ever gone without a bump to the federal floor.
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The Federal Stagnation
If you look at the books from 2017 to 2021, you won’t find a single bill signed into law that changed that $7.25 figure. To get that done, you need Congress to play ball. While there were plenty of debates on the Hill, especially after the 2018 midterms when Democrats took the House, a federal hike never made it to the Resolute Desk.
Trump’s vibe on this was kinda all over the place. One day he’d say he was looking at it, and the next he’d argue that a federal mandate would crush small businesses in places where life is cheap, like Alabama or Mississippi. He basically argued that a $15 wage might make sense in Midtown Manhattan but would be a "death sentence" for a diner in a rural town.
What About Federal Contractors?
This is where people get confused. There’s a difference between the "federal minimum wage" (which applies to almost everyone) and the "contractor minimum wage."
Back in the day, Obama signed an executive order to make sure people working on federal contracts got at least $10.10. When Trump came in, he didn't scrap the whole thing, but he did make a specific move in 2018. He signed Executive Order 13838, which actually exempted certain seasonal recreational businesses on federal lands—think outfitters or tour guides in National Parks—from having to pay that higher contractor minimum.
So, in that specific niche, he actually lowered the requirement back down to the standard $7.25.
The 2025 Reversal
Since we’re looking at this from the perspective of early 2026, we have to talk about what’s happening right now. After Joe Biden used an executive order to push the contractor minimum wage up to $15 (and eventually over $17 with inflation adjustments), Trump moved fast when he got back into office.
On March 14, 2025, he signed the Additional Rescissions of Harmful Executive Orders and Actions. This move effectively nuked Biden’s $15+ mandate for federal contractors. Now, the rate for those workers has largely reverted to the older Obama-era standard of around $13.30, or in some cases, all the way back to $7.25 if they fall under those recreational exemptions again.
Why Wages Still Went Up
Wait. If he didn't raise the law, why did so many people feel like they were making more? This is the "nuance" politicians love to fight over.
- State Action: While the federal government did nothing, dozens of states—including "red" states like Florida and Arkansas—passed their own laws to hike the minimum.
- Market Pressure: During the "Great Resignation" and the post-2020 labor shortage, companies like Amazon, Target, and Walmart started paying $15 or more just to get people through the door.
- Tax Cuts: The administration argues that the Tax Cuts and Jobs Act of 2017 put more money in pockets via bonuses and indirect raises, though economists at places like the Economic Policy Institute (EPI) argue those gains mostly stayed at the top.
The Debate That Won't Die
Trump’s Treasury Secretary, Scott Bessent, pretty much confirmed the administration’s stance during his confirmation hearings in early 2025. He flat-out told Senator Bernie Sanders that he doesn’t support raising the $7.25 federal floor.
The logic? They believe the market should dictate pay, not a "one-size-fits-all" number from Washington. Critics, however, point out that $7.25 in 2026 has about as much buying power as a stick of gum compared to when it was set nearly two decades ago.
What Should You Do Now?
If you're a worker or a business owner trying to navigate this, forget about the federal number for a second. It’s a ghost.
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- Check your state and city: This is where the real action is. Places like California and New York are already eyeing $17 or $18, while other states are tied to inflation.
- Watch the "Prevailing Wage": If you're in construction or service contracts, the Davis-Bacon Act and Service Contract Act still require "prevailing wages" that are often much higher than the minimum, regardless of Trump's executive order rescissions.
- Audit your payroll: If you were paying $17.75 because of the Biden-era contractor rule, you can technically lower it now in many cases, but you've gotta weigh that against losing your best staff to the guy down the street who didn't cut pay.
The federal minimum wage remains $7.25. Whether that changes depends entirely on whether the current administration changes its mind or if a very unlikely bipartisan coalition forms in Congress. Don't hold your breath on either.
Keep a close eye on your local Department of Labor updates, as state-level changes are scheduled for many regions on July 1st.