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February 25, 2021policy changelabor policybudget policycongressional procedurelaborbudgetcongressional procedure

Senate parliamentarian rules a $15 minimum wage cannot pass through reconciliation

Senate Parliamentarian Elizabeth MacDonough ruled that a provision raising the federal minimum wage to $15 per hour could not be included in the American Rescue Plan reconciliation bill because its budgetary impact was merely incidental to its underlying policy purpose. The ruling blocked Democrats from using their simple majority to enact the wage increase, despite President Biden and Senate Majority Leader Schumer supporting the provision. Some progressives called for overruling or replacing the parliamentarian, but Democratic leadership declined.