California Governor Gavin Newsom announced on August 1, 2026, that the state's minimum wage will increase to $17.40 per hour starting January 1, 2027. This new pay floor will be the highest of any US state, surpassing the current rate of $16.90.

Newsom highlighted the wage hike as a necessary support for working families facing high living costs. He criticized the federal government, stating, “For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations.” The federal minimum wage was last raised during George W. Bush’s presidency, from $6.55 to $7.25.

The state of Washington is expected to have the second-highest minimum wage in 2027 at $17.13, according to Department of Labor data. New York City and nearby counties currently have a minimum wage of $17.

Since Newsom became governor in 2019, California’s minimum wage has increased from $12. However, researchers at the Massachusetts Institute of Technology estimate that for a family of two working adults and two children in California, each adult must earn $36.38 per hour to cover basic necessities including food, childcare, healthcare, housing, and transportation.

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