The benefits provided by unemployment insurance have been a key component of Iowa’s economic support since the natural disasters of 2008. Additionally, with the passage of the federal American Recovery and Reinvestment Act (ARRA), unemployment insurance benefits and program changes have become a continued critical component of Iowa’s economic recovery and will assist with moving Iowa’s workforce into the 21st century.

As a result of the President declaring a number of counties as federal disaster sites due to the 2008 tornadoes and floods, individuals whose employment was affected were potentially eligible to receive Disaster Unemployment Assistance (DUA). Iowa Workforce Development paid out over $6.5 million in DUA payments in 2008.

Traditional unemployment insurance benefits provides up to 26 weeks of unemployment when an individual loses a job through no fault of his own. In July of 2008, Iowa Workforce Development announced the first of three extensions for Iowans receiving unemployment insurance benefits. Between the three extensions, Iowans are eligible for up to an additional 33 weeks of Emergency Unemployment Compensation (EUC), providing for a maximum of 59 weeks of unemployment benefits. Because the additional 33 weeks are federal extensions, the benefits are paid with federal dollars and do not affect the solvency of Iowa’s Unemployment Insurance Trust Fund.

The ARRA extended the cut-off date for Emergency Unemployment Compensation and added an additional $25 per week to every Iowans unemployment benefit. During the 1st quarter of 2009, Emergency Unemployment Compensation and the additional $25 weekly benefit added over $41 million dollars to the Iowa economy.

The American Recovery and Reinvestment Act contained a historic piece of legislation, the Unemployment Insurance Modernization Act, which Iowa moved swiftly to implement for the benefit of our state. On March 25, 2009, Governor Chet Culver signed Senate File 197, making Iowa the first state in the nation to enact new federal guidelines modernizing the unemployment insurance system.

As a result of this legislation, Iowa’s Unemployment Insurance Fund will to receive $71 million in federal Reed Act dollars to support the solvency of our state fund. Iowa was the first state in the nation to fully comply with the law, and has made the following changes to its unemployment insurance system.

• The bill provides for more unemployed Iowans to claim benefits in the quarter they first become unemployed, helping to stimulate the economy by getting benefits out more quickly to Iowans.
• The bill also provides for an additional 26 weeks of benefits for workers who enroll in high-demand or high-tech training programs. This will allow more Iowans to obtain the skills our economy demands while investing in our economy – all at no cost to employers.
• Finally, the bill makes it easier to rehire returning veterans. This is done by not charging employers for claims filed by temporary workers who replaced active duty military employees.

  Iowa’s Unemployment Modernization Act officially goes into existence on July 1, 2009.