Voters in Portland will head to the polls a week from tomorrow to decide whether to raise the city’s minimum wage to $19 an hour by 2028, a proposal that critics say could accelerate the city’s affordability crisis and drive out small businesses.
The measure, placed on the ballot by the City Council in August, would increase Portland’s current minimum wage of $15.50 an hour to $16.75 in 2026, $17.75 in 2027 and $19.00 in 2028. After that, the wage would rise annually with inflation, ensuring continual cost increases for employers.
[RELATED: Portland Residents to Consider Minimum Wage Hikes]
Business groups and local employers have warned that such a sharp wage hike will hit mom-and-pop shops, restaurants and childcare providers the hardest.
“That type of an increase over time would be something that’s unsustainable,” said Anthony Irace, president of Still a Good Cause Thrift Shop.
Quincy Hentzel, CEO of the Portland Regional Chamber of Commerce, said small businesses “are already stretched thin” and may have no choice but to raise prices, cut staff or leave the city altogether.
Opponents argue that the proposal is being pushed without fully considering its economic ripple effects. They note that large corporations might be able to absorb higher labor costs, but smaller, community-based employers likely cannot.
Portland already has one of the highest minimum wages in New England, and the statewide minimum wage — set to increase to $15.10 on Jan. 1, 2026 — is above the national average.
Supporters claim the increase is needed to keep up with rising living costs.
“If it is a gradual rise, I do think it’s something I would support so people can afford to live here,” said Portland resident Daphne Ross.
Another supporter, Ben Emery, said, “I think $19 makes the most sense, with the cost of living in Portland just continuously rising, makes sense for the wages to do the same.”
But opponents counter that raising wages this quickly could make Portland even more expensive, not less. Employers may raise prices to offset labor costs, potentially increasing prices for housing, childcare and the cost of living generally across the city.
The minimum wage debate is nothing new in Portland. A 2020 referendum raised the wage to $15 by 2024, and a similar ballot measure failed in 2022. Critics say the new proposal represents a costly escalation that could hurt the very workers it’s intended to help.
The November vote will test whether Portlanders are willing to absorb higher costs in exchange for higher wages or whether voters push back against a plan opponents say could destabilize the local economy.
