Behind the Paycheck: How Wages Shape Childhood 

A livable minimum wage is a proven policy that promotes family economic security, reduces child poverty, and decreases child neglect through family stabilization. When families earn enough to meet their basic needs, children thrive. When wages fall short, children bear the consequences. Child poverty is a policy choice, and policies that raise the floor for working families can reduce poverty and improve outcomes for Virginia’s children and youth.  

Virginia’s current minimum wage of $12.77 per hour is not enough for working families to make ends meet. A full-time worker earning minimum wage brings home approximately $26,562 per year before taxes, below the federal poverty threshold for a family of four. According to the Economic Policy Institute, even in low-cost areas like Scott County, a single adult needs at least $18.58 per hour to meet basic needs. A single parent with one child needs $27.10 per hour. Virginia’s minimum wage falls dramatically short of what families need to thrive.  

Current Legislation: HB 1 and SB 1 

During the 2026 General Assembly session, HB 1 (Del. Ward) and SB 1 (Sen. Lucas) would put Virginia back on the path to a $15 minimum wage, giving more than a million Virginia workers the ability to better provide for their families. The bills propose a phased increase: 

• Increase to $13.75 per hour on January 1, 2027 

• Increase to $15.00 per hour by January 1, 2029 

• Continue annual cost-of-living adjustments tied to inflation after 2029 

Why Minimum Wage Matters for Children 

Economic stability is the strongest predictor of a thriving and healthy childhood. Research consistently shows that when parents earn higher wages, children benefit from multiple dimensions of health and development. 

Child health improves: Research links minimum wage increases to better child health outcomes, with the greatest benefits for children from birth to age 5. A study in the American Journal of Health Economics found that increases in the minimum wage throughout childhood are associated with significant improvements in child health. 

Child maltreatment decreases: A landmark study published in Children and Youth Services Review found that a $1 increase in the minimum wage leads to approximately a 10% decline in child neglect reports. This effect is most pronounced among young children ages 0-5, where a $1 minimum wage increase was associated with a 10.8% reduction in neglect reports. The National Conference of State Legislatures recognizes minimum wage increases as an evidence-supported strategy to prevent Adverse Childhood Experiences (ACEs). 

Child poverty decreases: Approximately two-thirds of Virginia working families would see higher wages under these bills, disproportionately benefiting children in poverty. When caregivers have more disposable income, they are better able to provide for their children’s basic needs, food, clothing, medical care, and a safe home environment. 

Family stress decreases: Higher wages reduce financial strain and parental stress, creating more stable, nurturing environments for children. Research shows that minimum wage increases reduce spanking and other forms of punitive parenting as economic pressure on families eases. 

The State of Virginia’s Children 

Virginia’s children are facing increased economic hardship. According to recent data using the Supplemental Poverty Measure, 12% of Virginia’s children live in poverty, up from 9% just a few years ago. This represents approximately 230,000 children facing economic hardship. Without existing government support programs like SNAP, refundable tax credits, and housing subsidies, the child poverty rate in Virginia would be 20%. 

Critically, 61% of children in poverty nationwide live with at least one employed parent. These are working families who struggle to make ends meet because wages have not kept pace with the cost of living. The majority of minimum wage earners are adult providers, disproportionately women, who bear primary responsibility for household expenses and the care of children.  

Virginia took an important step in 2020 by beginning to raise the minimum wage, but the work is not yet finished. With rising costs for housing, food, child care, and health care, families need wages that keep pace with the economy. HB 1 and SB 1 offer an opportunity to continue this progress and ensure Virginia’s working families can provide for their children. 

Take Action 

Fair wages mean stronger families. Virginia’s working families are struggling to make ends meet while earning wages that haven’t kept pace with the cost of living. 

We encourage you to learn more about HB 1 and SB 1 and get involved in advocating for their passage. Send lawmakers a message asking for their support using our action alert. Tell your legislators it’s time to raise the minimum wage and invest in the economic stability of Virginia’s children and families. 

When wages rise, families stabilize. When families stabilize, children thrive. A $15 minimum wage is not just an economic policy, it is a child welfare policy, a health policy, and an investment in Virginia’s future. 

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