Iowa will stop participating in federal unemployment benefits programs in June

(The Center Square) – June 12 will be the last week several federal pandemic-related unemployment benefits will be available in Iowa, Gov. Kim Reynolds announced in a news release May 11.

“Our unemployment rate is at 3.7 percent, vaccines are available to anyone who wants one, and we have more jobs available than unemployed people,” Reynolds said in a tweet May 11. “Regular unemployment benefits will remain available, as they did before the pandemic, but it’s time for everyone who can to get back to work. This country needs to look to the future, and Iowa intends to lead the way.”

The state will continue its regular state unemployment insurance benefits but stop waiving employer charges for COVID-related unemployment insurance claims, according to an Iowa Workforce Development news release.

The news follows a May 10 memo from Iowa Workforce Development Director Beth Townsend sent to the governor.

“Iowa is experiencing a significant workforce shortage as we continue our recovery from the pandemic,” Townsend said in the memo. “Employers across the state, across all industries, report substantial difficulty in finding sufficient workforce and negative consequences to their ability to recover and grow their business.”

The state had agreed in March and December 2020 to participate in unemployment programs through the Coronavirus Aid, Relief and Economic Security Act (CARES) and Continued Assistance to Unemployed Workers Act (CAA) of 2020, which were extended through the American Rescue Plan that passed in March 2021, the memo said.

Through the termination of participation in the programs, Iowa Workforce Development stops paying the benefits of Pandemic Unemployment Assistance, Federal Pandemic Unemployment Compensation and Pandemic Emergency Unemployment Compensation as of June 12. The average weekly benefits for those programs are $224.28 and $335.78, respectively, while state unemployment insurance, which will remain in effect, provides average weekly benefits of $390.65, the memo said.

Iowans are required to actively search for work in order to receive Pandemic Emergency Unemployment Compensation and regular unemployment benefits, but they are not required to do so in order to receive Pandemic Unemployment Assistance, the memo said.

NFIB State Director in Iowa Matt Everson told The Center Square that he anticipates that the governor’s actions will help small businesses become “fully up and operational” as he anticipates it will push more people to join the workforce.

“And the small business economy’s going to be the key to get us into a full recovery, hopefully by September,” he said.

Americans for Prosperity-Iowa State Director Drew Klein thanked Reynolds in a news release in which the organization predicted Reynolds’ actions will help businesses seeking to create jobs and reduce unemployment in the state.

“On behalf of our activists across Iowa, we thank Governor Reynolds for doing what needed to be done to jumpstart Iowa’s economy and pave the way towards recovery for small businesses and families alike,” Klein said. “After April’s underwhelming jobs report, it’s clear that these ongoing benefits continue to be a hinderance, rather than a boon, to our economic recovery. Thanks to Governor Reynolds’ actions today, Iowa is one step closer to helping our families get back on their feet.”

Iowa Senate Democratic Leader Zach Wahls criticized Reynolds’ decision in a tweet May 11.

“As President Biden said, ‘People will come back to work if they’re paid a decent wage.’ The federal relief is helping Iowans stay housed, clothed, and fed,” he said. “Democrats have plans to ensure Iowans have better paying jobs, affordable child care, and job training. It makes no sense for Governor Reynolds to pull the rug out from unemployed Iowans while we remain in the grip of a worldwide pandemic.”

Iowans impacted by the changes will receive notification from the Iowa Workforce Development, according to the Iowa Workforce Development news release. Iowans can search for “over 66,000” jobs via the IowaWORKS website and call Iowa Workforce Development if they need help filing unemployment insurance claims, the release said.

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