The federal minimum wage has been stuck at $7.25 since 2009. That is a long time. In fact, it's the longest period without a raise since the floor was first created back in the 1930s. If you’ve been watching the news lately, you know the name Scott Bessent. He’s the guy steering the ship at Treasury now. People are asking one big question: will he finally move that needle?
Honestly, the answer isn't what a lot of folks want to hear. During his confirmation process, Bessent was pretty blunt. When Senator Bernie Sanders looked him in the eye and asked if he’d support raising that $7.25 federal floor to a living wage, Bessent’s response was a flat "No, sir."
It wasn't a stumble. It was a philosophy.
The Core of the Scott Bessent Minimum Wage Philosophy
Bessent views the economy through a lens of regionalism. He basically argues that a federal "one size fits all" number doesn't make sense for a country as big as the U.S. To him, the scott bessent minimum wage stance is about local control. He told the Senate Finance Committee that he believes the minimum wage is "more of a statewide and regional issue."
Think about it. $15 an hour in Manhattan doesn't buy the same life as $15 an hour in rural Mississippi. Bessent’s logic is that by keeping the federal floor low, states have the freedom to set their own rates based on their local cost of living and business climates.
It’s a classic conservative economic play. But it’s also a risky one in a 2026 economy where inflation has taken a bite out of everyone’s paycheck.
Why Regionalism Matters to the Treasury
He isn't just being difficult. He’s looking at the math of his "3-3-3" plan. He wants 3% GDP growth, 3% budget deficits, and 3 million more barrels of oil. To get that 3% growth, he believes businesses—especially small ones—need to be free from what he sees as "burdensome" federal mandates.
If the federal government forces a wage hike, Bessent worries it could trigger:
- Job losses in lower-cost states.
- Price hikes at the grocery store.
- A "wage-price spiral" that keeps inflation sticky.
Some people call this "pro-growth." Others call it "trickle-down" with a fresh coat of paint.
The Bernie Sanders Face-Off
The exchange with Sanders was a viral moment for a reason. Sanders pointed out that 22 million workers in the U.S. make less than $15 an hour. He called $7.25 a "starvation wage."
Bessent didn't flinch.
He didn't offer a compromise. He didn't say, "maybe $10." He stuck to the idea that the market and the states should decide. This is a massive shift from the previous administration's pushes for a federal $15 minimum. We’ve gone from a Treasury that wanted to mandate higher pay from D.C. to one that wants D.C. to stay out of it entirely.
What Most People Get Wrong About This Stance
There's a common misconception that because Bessent opposes a federal hike, he wants wages to stay low. If you listen to his interviews on Fox Business or Bloomberg, he actually brags about wage growth. He’s pointed out that under the current administration's policies, hourly workers have sometimes seen faster wage growth than their supervisors.
His argument is that market-driven wage growth is better than government-mandated wage growth.
Basically, if the economy is booming and there's a labor shortage, businesses have to pay more to get workers. That’s "natural" growth in his eyes. Mandating it from a desk in Washington? That’s "artificial" and, in his view, dangerous.
The 3-3-3 Plan and Your Paycheck
You can't talk about the scott bessent minimum wage position without looking at the 3-3-3 plan. This is his blueprint for the country.
- 3% Real GDP Growth: He thinks tax cuts and deregulation will make companies so profitable they'll want to hire and pay more.
- 3% Deficit Target: He’s a hawk on the deficit. Raising the minimum wage often increases government costs (think of all the federal contractors and employees). By keeping the wage floor where it is, he protects the budget.
- Energy Production: He believes cheaper energy is a better way to give people a "raise" than a higher minimum wage. If your gas and heating bills go down, your $7.25 (or $12, or $15) goes further.
It’s an indirect approach to prosperity. It’s also an approach that relies heavily on the "rising tide lifts all boats" theory.
The Critics’ Corner: What the Data Says
Not everyone is buying the "statewide and regional" argument. Groups like the Center for American Progress have been vocal. They argue that leaving it to the states creates "poverty pockets" in the South and Midwest.
A full-time worker making $7.25 earns about $15,080 a year.
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In 2026, that's not just low; it’s almost impossible to live on. Critics argue that by the time "market forces" raise wages in these areas, families will have already fallen into deep debt. They also point out that many states have "preemption laws" that actually prevent cities from raising their own minimum wages, even if the local cost of living is high.
Key Takeaways for Workers and Business Owners
So, what does this mean for you? If you're waiting for a federal check to arrive with a "minimum wage increase" stamp on it, don't hold your breath.
- For Workers: Your pay raises are going to come from two places: your state legislature or your ability to jump to a new job. In this Treasury environment, the "federal cavalry" isn't coming to raise the floor.
- For Small Businesses: You likely won't see a sudden spike in mandatory labor costs from the federal level. This gives you more predictability in your margins, though you'll still have to compete with the "market rate" to keep staff.
- For Investors: Bessent’s stance is a signal that the administration is prioritizing corporate flexibility. This is generally seen as "business-friendly" and often leads to short-term stock market optimism.
Practical Steps to Navigate the Bessent Era
Since a federal hike is off the table, the focus shifts to the local level. Here is how you can actually track and react to these changes:
Track your state’s ballot. Since Bessent is pushing the responsibility to the states, many local advocacy groups are putting minimum wage hikes directly on the ballot. Watch for these in the next election cycle; that's where the real movement will happen.
Focus on "Total Compensation." Bessent’s team is big on the idea that tax cuts and lower energy prices increase "disposable income" even if nominal wages stay the same. When you're looking at your finances, look at your net take-home pay after taxes and utility costs, rather than just the hourly rate.
Upskill for the "Growth Economy." The 3-3-3 plan is designed to reward high-productivity sectors like energy and manufacturing. If the federal floor isn't moving, the best way to get a raise is to move into the industries the Treasury is actively subsidizing and deregulating.
The scott bessent minimum wage policy isn't just a "no." It's a complete pivot back to a localized, market-first economy. Whether that works or leaves millions behind is the gamble the Treasury is taking right now.