Gov. Gavin Newsom (D-CA) on Friday celebrated the coming increase to the state’s minimum wage, which will give California the highest statewide rate in the country, contrasting the move with the federal minimum wage that has remained unchanged for more than 15 years.

California’s minimum wage will rise from $16.90 to $17.40 an hour on Jan. 1, 2027, Newsom, a possible 2028 presidential candidate, announced. The 50-cent increase will put the state’s baseline wage at nearly two and a half times the federal minimum wage of $7.24 per hour.

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