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Santa Fe becomes first U.S. city to link minimum wage to inflation and rent, raising it to $17.50 by 2027 with annual adjustments.
Santa Fe, New Mexico, has become the first U.S. city to tie minimum wage increases to both inflation and fair market rent, with the wage rising to $17.50 in 2027 and adjusted annually using a 50-50 formula based on the Consumer Price Index and rental costs, capped at 5% per year.
The policy, aimed at helping workers afford housing and preserve the city’s cultural diversity, will benefit about 9,000 workers.
To address housing shortages, Santa Fe is expanding permits and using a mansion tax on homes sold for over $1 million to fund affordable housing projects.
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Santa Fe se convierte en la primera ciudad de EE. UU. en vincular el salario mínimo con la inflación y el alquiler, elevándolo a $17.50 para 2027 con ajustes anuales.