Firing a fresh salvo in the battle for fair artist compensation, Rep. Rashida Tlaib of Michigan is set to reintroduce the Living Wage for Musicians Act (LWMA) on September 29, 2025. The legislation, which failed to pass during its initial introduction in March 2024, aims to fundamentally restructure how streaming platforms compensate artists in an era where musicians increasingly struggle despite industry profits.
The LWMA establishes an “Artist Compensation Royalty Fund” financed through a substantial fee added to streaming subscriptions—equal to 50% of the provider’s subscription fee—alongside a 10% levy on non-subscription revenues. For consumers, this means potential price increases of approximately $6 on standard $12 monthly subscriptions, a change likely to face resistance from major streaming platforms and rights holders.
At the heart of the bill is a mechanism to guarantee artists receive at least one cent per stream, with royalties distributed directly to both featured and non-featured musicians based on their streaming share. This minimum rate is especially critical given that streaming now comprises 84% of revenue in the U.S. recorded music industry. The legislation includes a pragmatic cap on payments at one million streams monthly per track, balancing fair compensation with sustainable distribution.
The New York City Council bolstered momentum for the bill in May 2025, passing a resolution supporting the LWMA ahead of its congressional reintroduction. This municipal endorsement provides critical political legitimacy as the bill faces an uphill battle in the 119th Congress.
Rep. Tlaib has assembled a progressive coalition of co-sponsors including Representatives Alexandria Ocasio-Cortez, Ilhan Omar, Mark Takano Thompson, and Jamaal Bowman. The bill was originally introduced with Rep. Jamaal Bowman last year, showing continued collaboration among progressive lawmakers. The United Musicians and Allied Workers union, formed during the COVID pandemic, serves as the primary organizing force behind the legislation, mobilizing artists and fans to lobby their representatives.
The bill also mandates unprecedented transparency, requiring detailed accounting of streaming revenue for at least three years. The legislation aims to bypass traditional collecting societies that often delay royalty distributions to artists, providing a more direct payment system. Critics argue the legislation could disrupt the streaming ecosystem, while supporters maintain it addresses a fundamental inequity in how musical labor is valued in the digital age, connecting music industry reform to broader social justice movements. The legislation comes at a crucial time when many professional musicians are forced to build diverse income streams through teaching, merchandise, and licensing to survive financially.
