Iowa Governor Ends State Participation in Federal Pandemic Unemployment Benefits

Beginning June 12, Iowa will no longer participate in the Pandemic Unemployment Assistance (PUA) program. Governor Reynolds released this statement via Twitter:

“Iowa will end its participation in federal pandemic-related unemployment benefit programs. 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. (1/2)

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. (2/2)”

Pandemic Unemployment Assistance (PUA) is a program under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 that provides temporary income to individuals who became unemployed as a result of the COVID-19 pandemic. It is funded by the federal government, not by state unemployment taxes paid by employers. These programs made up more than 80% of unemployment claims paid in the first week of May.

The measure is meant to stimulate the Iowa economy by reducing the number of open, unfilled jobs; many employers with entry-level positions are experiencing a severe shortage of workers. With the current added federal benefits, an employer would have to offer upwards of $15 per hour to encourage a person to leave behind unemployment benefits and stay competitive.

However, for many Iowans that lost their jobs or had to close businesses due to the pandemic, these added benefits have been a life raft in a sea of uncertainty. And although vaccinations are available, they are not necessarily accessed equally as easily by everyone. Black and Hispanic people have received smaller shares of vaccinations comparatively, in most states.

Zach Wahls, Iowa Senator, said the benefits Reynolds is ending early are “helping Iowans stay housed, clothed and fed.” 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,” he said in a statement.

Although the Federal Pandemic Unemployment benefits programs themselves are set to expire September 6, 2021, the last payable week for pandemic unemployment benefits in Iowa will be June 12, 2021. No benefits will be paid to Iowans for any weeks after June 12, even if you have a remaining balance on your claim; however, recently unemployed Iowans will still be eligible for unemployment insurance through Iowa Workforce Development (IWD) as they were pre-pandemic.

By Jessica Palmer & Samantha Rogers