# US minimum wage hits 70-year low in real value Federal wage floor now officially below poverty line, report finds. - **Source:** [Fortune | FORTUNE](https://brifing.si/source/769282ef-327a-4454-909a-3c7936216004) - **Published:** 2026-07-20 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/c6d24738-e883-4600-82dd-61de3f156c29 ## Historic decline The US federal minimum wage has remained at $7.25 for 17 years straight. With rising inflation, its purchasing power has dropped to the lowest level in 70 years. Experts note the wage is now 'officially a poverty wage' below the subsistence threshold. ## Below poverty line A full-time minimum wage worker's annual income falls below the $15,650 poverty threshold set by Health and Human Services. Southern states maintaining the $7.25 rate show particularly high poverty levels nationwide. ## Public support for increase A 2021 Pew survey found 62% of Americans support raising the federal minimum to $15. Opponents argue increases would cause job losses and price hikes, though most agree $7.25 is too low. ## State-level actions 30 states and DC already set wages above federal level. NYC's mayor proposed gradually raising the city's minimum to $30 by 2030. California implemented a $20 minimum for fast-food workers this year amid heated debate. ## Mixed outcomes in California While some studies claim California's $20 wage caused 18,000 fast-food job losses, UC Berkeley research found 11% wage gains without significant employment drops. Prices rose modestly by about 1.5% on average. ## Potential national model Economists suggest California's experiment may guide national policy as two dozen states prepare minimum wage hikes this year. These developments could mark a turning point for worker compensation across America. ## Sources covering this story - https://fortune.com/2026/07/20/minimum-wage-lowest-value-in-70-years-poverty-line/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._