The New Hampshire Senate has killed a bill that would have set the state minimum wage at $8.25 next year and increase it to $9 in 2016.
The Senate voted 13-11 along party lines to reject the bill favored by Democrats.
Democratic Gov. Maggie Hassan and the Democratic controlled House had pushed the increase as a way to improve the financial security of working families and people of all ages.
Senate Democrats also argued people can't live on the current $7.25 hourly minimum without subsidies from government, family or friends. But Republicans countered the bill would cost the state jobs.
The Legislature eliminated the state's minimum wage law in 2011, which means the federal minimum wage is the state's minimum. Lawmakers rejected restoring the state wage last year.