The House’s Democratic majority, exercising its new political clout, on Wednesday approved the first increase in the federal minimum wage in a decade–from $5.15 to $7.25 an hour over two years.
The measure heads to the Senate, where it is likely to be coupled with tax breaks for small businesses to win Republican votes in the narrowly divided chamber and to secure President Bush’s signature.
The minimum wage has been unchanged since 1997, the longest period without a raise since the first federal minimum wage was enacted in 1938.
Illinois–where the minimum wage increases to $7.50 an hour in July–is among 29 states and the District of Columbia with minimum wages that exceed the existing federal rate.
An increase in the minimum wage was among the initiatives House Democrats pledged to pass during their first 100 hours in power.
The measure was approved 315-116, with 82 Republicans joining 233 Democrats in voting for it. All the no votes were cast by Republicans.
Among Illinois Republicans, Reps. Judy Biggert, Tim Johnson, Mark Kirk, Ray LaHood, John Shimkus and Jerry Weller voted for the bill. Former Speaker Dennis Hastert, Don Manzullo and Peter Roskam voted no.
“What a difference an election makes,” said Rep. George Miller (D-Calif.), chairman of the House Education and Labor Committee.
Once the minimum wage is increased, he said during the debate, “You dramatically change life for millions of people.”
House Majority Leader Steny Hoyer (D-Md.) said workers relying on $5.15 an hour were “essentially living in poverty.”
The White House said in a statement that an increase in the minimum wage should be tied to tax and regulatory relief “to help small businesses stay competitive and to help keep the economy growing.”
Under the measure approved by the House and introduced in the Senate, the wage would climb to $5.85 an hour 60 days after the legislation is enacted, rise to $6.55 one year later, and $7.25 another year after that.
The federal minimum wage, first enacted at the rate of 25 cents an hour as part of President Franklin D. Roosevelt’s New Deal to pull the nation out of the Depression, has long been a rallying point for Democrats.
Rep. Jeb Hensarling (R-Texas) contended that employers would cut jobs and benefits to pay for a minimum-wage increase.
“The truth is that mandated minimum wage increases hurt small businesses, thus impeding job creation and ultimately hurting the people it is designed to help,” he said.
Senate debate on a minimum wage increase is expected to begin as early as next week.
The restaurant industry and other employers were already at work lobbying the Senate for tax breaks for small businesses.
Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, predicted a wage increase would be accompanied by tax breaks for small businesses in the Senate bill.
“Small-business tax packages have traveled with minimum wage increases before,” he said.
