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Trump Cuts Federal Contractor Wages as Minimum Wage Debate Intensifies

President Trump's executive order reduces federal contractor wages, while misinformation and legislative proposals keep minimum wage policy in the spotlight.

Overview

  • President Trump signed an executive order on March 14, 2025, reducing the minimum wage for federal contractors from $17.75 to $13.30 per hour, reversing a policy implemented under President Biden.
  • The federal minimum wage remains at $7.25 per hour, unchanged since 2009, as confirmed by the U.S. Department of Labor.
  • A viral social media claim falsely alleged that Trump signed an order raising the federal minimum wage to $25 per hour, effective April 15, 2025, but no such order exists.
  • The 'Raise the Wage Act of 2025,' introduced on April 8, proposes gradually increasing the federal minimum wage to $17 per hour by 2030, affecting over 20 million workers if passed.
  • State-level wage increases highlight significant disparities, with more than a dozen states implementing minimum wages higher than the federal standard, including California at $16.50 per hour.

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