The Raise the Wage Act of 2025 aims to gradually increase the federal minimum wage, ensuring that workers earn a living wage that reflects the cost of living and helps reduce poverty. The Act outlines a series of scheduled increases to the federal minimum wage, starting at $9.50 per hour upon enactment and rising to 1.00 after one year, 2.50 after two years, 4.00 after three years, 5.50 after four years, and ultimately reaching 7.00 after five years. Following this period, the minimum wage will be adjusted annually based on the increase in the median hourly wage of all employees.