Many cities and states to increase minimum wages in 2026 due to lack of federal action

Starting in January, workers across multiple cities, counties, and states will see an increase in the minimum hourly wage, with many areas reaching $15 per hour, according to a recent analysis. The federal minimum wage has stayed at $7.25 per hour since 2009, prompting local governments to implement their own scheduled or legislated increases, often tied to inflation.

The National Employment Law Project, a nonprofit focused on workers rights, reported that by the end of 2026, 88 jurisdictions will have raised their minimum wages. For example, Nebraskas wage floor will jump from $13.50 to $15 per hour, and Rhode Islands minimum wage will rise from $15 to $16 per hour.

In January, all workers in Denver will see their minimum wage increase from $18.81 to $19.29, while in Flagstaff, Arizona, it will go from $17.85 to $18.35 per hour. Rising living expensesincluding housing, food, and utilitieshave made these increases particularly important for lower-income workers, according to Yannet Lathrop, senior researcher at the National Employment Law Project.

These wage increases help offset inflation and the rising costs of essentials like food, housing, and medicine, Lathrop explained. She added that higher wages also contribute to better educational outcomes and improved physical and mental health, benefiting both workers and their communities.

Advocates argue that increasing the minimum wage puts more money into the hands of workers, who are likely to spend it locally, thereby stimulating the economy. However, some employers, particularly small businesses, warn that higher wages could result in reduced staffing or increased prices.

In Rhode Island, a proposal initially aimed to raise the minimum wage by $1 per year until reaching $20 per hour by 2030. Due to opposition from business groups and economic uncertainties, the plan was adjusted to smaller increases over two years, reaching $17 per hour by 2027. Republican lawmakers still expressed concerns about potential layoffs and price hikes.

Meanwhile, 20 states, mainly with conservative leadership such as Alabama, Iowa, Texas, and Wyoming, have maintained the $7.25 federal minimum wage. In Missouri, voters approved a measure last year to raise the minimum wage to $15 and provide paid sick leave, with future increases tied to inflation. Republican lawmakers later repealed the paid leave and removed the inflation-linked increases, though the wage will still rise to $15 in January.

These adjustments highlight the growing role of state and local governments in shaping wages, as federal policy remains unchanged, while workers and communities face mounting cost-of-living pressures.

Author: Aiden Foster