Starting on January 20, 2021 and continuing for an indefinite period thereafter, it shall be the policy of the United States of America that every fully employed citizen or resident of the United States shall receive a Fair Wage equal to or greater than that established by the United States Department of Labor. A living wage is an approximate income needed to meet a family’s basic needs that would enable the working poor to achieve financial independence while maintaining housing and food security. When coupled with lowered expenses, for childcare and housing in particular, the living wage might also free up resources for savings, investment, and/or for the purchase of capital assets (e.g., provisions for retirement or home purchases) that build wealth and ensure long-term financial security.

The average Living Wage necessary in the United States today is approximately $17.50 per hour for an individual, or $70,000 per year in 2021, before taxes, for a family of four (two working adults, two children). Expected annual increases equal to that of the Consumer Price Index (CPI-U) will be adopted by the Labor Department. Individual counties and metropolitan areas within each state will vary according to the Living Wage calculator developed in consultation with the MIT Living Wage calculator.

Joseph R. Biden
President