By SDCN Staff
Sacramento, CA–Governor Gavin Newsom announced that California’s statewide minimum wage will increase to $17.40 per hour effective Jan. 1, 2027.
According to the governor’s office, the new rate will be the highest statewide minimum wage in the United States. The federal minimum wage remains $7.25 per hour and has not changed since 2009.
The federal minimum wage has been $7.25 an hour since 2009–more than 17 years. This is the longest the federal minimum wage has gone without an increase since it was adopted in 1938. And during those 17 years inflation has dramatically raised the cost of living for working families.
“For years, Donald Trump and Republicans have blocked efforts to raise the federal minimum wage while handing tax breaks to billionaires and big corporations. California has chosen a different path–one that rewards work, grows the economy, and puts working families first. We believe if you work hard, you deserve a decent paycheck. They think $7.25 an hour is enough. We don’t,” Newsom said.
The increase is automatic under California law, which adjusts the minimum wage annually to keep pace with inflation.
California’s minimum wage has grown from $12 an hour when Governor Newsom took office to $17.40 an hour starting on January 1, 2027. The wage increase is part of a broader agenda to make life more affordable for Californians.
According to the governor, California has:
- Become the first state in the nation to provide free breakfast and lunch to every public school student.
- Made preschool free for four-year-old children by universal transitional kindergarten.
- Expanded access to free and low-cost child care for nearly 500,000 children.
- Invested record funding in free summer school and before and after-school programs
- Launched the nation’s first Golden State Start program, providing 400 free diapers to every newborn before leaving the hospital.
- Expanded Paid Family Leave, allowing lower-income workers to receive up to 90% of their wages while caring for a new child or sick loved one.
- Launched CalKIDS, the nation’s largest children’s “baby bonds” — college and career savings accounts, automatically providing eligible children with up to $1,500 for higher education or career training.
- Capped security deposits at one month’s rent, lowering move-in costs for renters.
- Banned hidden “junk fees” so Californians see the real price upfront.
- Delivering up to $60 billion in utility bill relief rebates.
- Created CalRx, bringing affordable generic drugs and $11 insulin to Californians.
- Expanded Medi-Cal to provide health coverage to more Californians than ever before.
- Raised the minimum wage to $20 per hour for fast-food workers and $25 per hour for health care workers.
- Expanded the California Earned Income Tax Credit and delivered the largest state tax rebate in American history, putting billions back into the pockets of working families.
California’s economy has continued to expand under Newsom’s administration, according to figures released by the governor’s office.
The administration said the state’s gross domestic product increased by more than $1.18 trillion since Newsom took office, reaching $4.25 trillion in 2025, with first-quarter 2026 economic output estimated at an annualized $4.4 trillion. State officials said California remains the world’s fourth-largest economy and continues to rank first among U.S. states in new business formation, manufacturing, venture capital investment, high-tech business activity and agricultural production. The governor’s office also reported that California is home to more than 4.3 million small businesses employing 7.6 million people, more than Texas or Florida.
According to the administration, the state added more than 131,000 jobs over the previous year during the first quarter of 2026, the largest increase among states, while the state’s real GDP grew at an annualized rate of 3.7%, the nation’s second-fastest pace for the quarter.
