A federal $25 minimum wage mandate would destroy millions of jobs across the country and hit several of the Sun Belt states that have seen a significant influx of new residents in recent years, an economist warned in an interview with Fox News Digital.The warnings come in response to recent legislative efforts from progressive members of Congress pushing to raise the federal minimum wage floor to $25 per hour by 2031 for large employers, while smaller businesses would reach that rate by 2038.The proposal would also eliminate the federal tip credit, raising the direct cash wage requirement for tipped employees up to $25 per hour.Rebekah Paxton, research director at the conservative Employment Policies Institute (EPI), warned that a $25 federal mandate would be a total "job killer."SANDERS-AOC BACKED PROGRESSIVE DEBUTS FEDERAL $25 MINIMUM WAGE BILL WITH COALITION OF 100+ ORGANIZATIONSRep.
Alexandria Ocasio-Cortez, D-N.Y., speaks during a news conference on April 29, 2026, outside the U.S.Capitol about raising the federal minimum wage.
(Tom Brenner/Getty Images)The EPI projects that the policy would slash nearly five million jobs nationwide.The group expects states including Texas, Pennsylvania, Georgia, North Carolina and Florida to suffer the largest absolute job losses."Some of the top states that are going to be impacted by a $25 minimum wage include Texas, Pennsylvania, Florida, Ohio, Tennessee … These states have a massive workforce.
They also currently abide by the federal $7.25 minimum-wage rate, so a $25 minimum wage represents more than tripling the current minimum wage applicable in those states," Paxton told Fox News Digital.Texas, North Carolina and Florida have been among the primary beneficiaries of post-COVID migration.While major metropolitan areas, including Cook County, Illinois, and Los Angeles County, experienced population declines, U.S.
Census figures show the Southeast is booming, with many of the fastest-growing counties in the nation con...