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Iowa to end participation in federal unemployment benefit programs, citing strong labor market and recovering economy 

Iowa Governor Kim Reynolds

DES MOINES – Today Governor Kim Reynolds announced new measures to address the State of Iowa’s severe workforce shortage. Effective June 12, 2021, the State of Iowa will end its participation in federal pandemic-related unemployment benefit programs. Iowa will continue to provide regular state unemployment insurance benefits to those eligible under the applicable state code.

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

The week ending June 12, 2021 will be the last week that the following federal pandemic-related unemployment benefit programs are available in Iowa:

  • Federal Pandemic Unemployment Compensation (FPUC)
  • Pandemic Unemployment Assistance (PUA)
  • Pandemic Emergency Unemployment Compensation (PEUC)
  • Mixed Earners Unemployment Compensation (MEUC)

Additionally, effective June 13, 2021, Iowa will no longer waive employer charges for COVID-related unemployment insurance claims.

“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,” Gov. Reynolds continued. “This country needs to look to the future, and Iowa intends to lead the way.”

In addition to the information included in a memorandum to Governor Reynolds, Iowa Workforce Development will provide further details in conjunction with this announcement.

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