Raising the federal minimum wage to $10.10, as President Barack Obama and Democrats in Congress are proposing, could result in about 500,000 jobs being lost by late 2016, the Congressional Budget Office estimated on Tuesday.

The nonpartisan CBO also said that increasing the hourly wage could reduce U.S. budget deficits by a small amount for several years, but then increase them slightly in later years.

The current minimum wage is $7.25 an hour.

Democrats, who control the Senate, could try to advance minimum wage legislation as early as next month.