California raises minimum wage to $17.40, touting state-led gains over federal inaction

California’s statewide minimum wage will rise to $17.40 per hour on Jan. 1, 2027 (current $16.90), with higher rates already in place for fast‑food and healthcare workers; the increase is inflation-indexed with a 3.5% cap. Gov. Gavin Newsom touts the policy as evidence of a strong state economy and contrasts it with the federal minimum wage of $7.25, while Republicans warn the measure could burden small businesses.