Gavin Newsom 'Proud' Of California's $20 Fast Food Minimum Wage, Points Finger At Red State $7.25 An Hour Figure: Try Raising A Family On That

California Gov. Gavin Newsom (D) on Thursday used his State of the State spotlight and a follow-up social media post to celebrate industry-specific minimum wage hikes and contrast them with far lower pay in many Republican-led states.

Newsom Highlights Sector-Specific Wage Hikes Proudly In Address

On X, Newsom wrote that he is "proud to work with the Legislature to raise the minimum wage to $20 for fast-food workers and $25 for health care workers."

In Sacramento, Newsom echoed that message in his State of the State address, telling lawmakers, "Compare that to workers in Alabama, South Carolina, or Tennessee, and in 17 other states, working full-time at just $7.25 an hour, a minimum wage that hasn't been raised in nearly two decades. Try to pay the rent, raise a family, and pay for an education on that."

California now has a statewide minimum wage of $16.90 per hour, with higher floors for certain sectors. Under laws signed by Newsom in 2023, fast-food workers at large chains earn at least $20 an hour, and healthcare workers are on a phased path toward $25, with higher rates already in effect at many facilities.

California Leads On Wages Amid Economic Strains

During his address, Newsom cast California as an antidote to President Donald Trump's agenda, arguing that the state continues to lead in manufacturing, technology, education, and agriculture, even as it pushes for aggressive worker protections.

But the governor's victory lap comes as the Golden State's finances tighten. After years of surpluses, California faces an estimated $18 billion deficit in the next budget year, and the state's nonpartisan Legislative Analyst's Office warns that structural gaps could reach about $35 billion annually later this decade if spending continues to outpace revenue.

Budget Plan Balances Ambition With Mounting Deficits

Newsom, widely viewed as a likely 2028 presidential contender, is set to unveil a new budget plan aimed at closing the gap while defending progressive priorities, a balancing act that has previously drawn both praise from labor advocates and sharp criticism from business groups and commentators who argue that California's $20 fast-food wage and broader labor agenda are raising costs and pressuring employers.

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