Iowa to end participation in federal pandemic-related jobless-benefit programs

Iowa will end its participation in federal pandemic-related, unemployment-benefit programs next month, with the governor saying that the jobless benefits discourage people from working.

Gov. Kim Reynolds announced this morning that the change will be effective June 12.

A press release states that Iowa will continue to provide regular state unemployment benefits to eligible residents.

“Federal pandemic-related unemployment benefit programs initially provided displaced Iowans with crucial assistance when the pandemic began, but now that our businesses and schools have reopened, these payments are discouraging people from returning to work,” Reynolds stated in the release.

Iowa’s unemployment rate is 3.7%, and the state has more available jobs than unemployed people, Reynolds said.

The federal assistance that will end in Iowa includes the federal pandemic unemployment compensation, pandemic unemployment assistance, pandemic emergency unemployment compensation and mixed earners unemployment compensation programs.

Iowa also will no longer waive employer charges for COVID-related unemployment insurance claims as of June 13.