New federal rules issued by President Joe Biden requiring that federal employees and government contractors must earn at least $15 an hour could cost the Defense Department $880 million a year, according to estimates from the Pentagon and congressional budget experts.
To be sure, the cost to the federal government, or just the Pentagon, of the higher minimum wage was not central to the arguments for or against it. Some business leaders and conservatives argued against it, mainly on the grounds that it would cause employment losses. Supporters of the raises clearly believe the boost to working families makes the additional cost worth it.
And even $880 million in extra annual expenses at the Pentagon represents but a tiny fraction of the department’s yearly budget of nearly three-quarters of a trillion dollars.
