Unemployment insurance tax, other bills sent to Gov. Reynolds' desk
A bill that lowers the unemployment insurance taxes on Iowa businesses advanced through both chambers on Wednesday, advancing in both with a party-line vote. The bill lowers the tax rate levied on employers that is used to fund unemployment benefits in the state.
House Republicans argued that with a lowered rate, business owners have the ability to give employees better benefits.
'The proposal encourages businesses to use these savings on salaries, benefits, paid leave during seasonal layoffs to reduce the use of the unemployment system,' said State Representative David Young (R), District 28 from Van Meter. 'This proposal sees $975 million put back in our economy to benefit employers, employees and Iowa consumers.'
House Democrats argued that with the thousands of layoffs so far this year in the state, this bill is giving businesses a break and not helping the workforce.
'Our fund has more money in it because we've cut unemployment benefits for workers and now we're going to reward those companies by giving them a $1 billion tax cut,' said House Minority Leader Jennifer Konfrst (D), District 32 from Windsor Heights. '4,200 Iowans have received layoff notices this year.'
That bill is now eligible to be signed into law by Governor Kim Reynolds, the bill was her proposal.
Other bills that made it to her desk include paid parental leave for state employees. That bill gives four weeks for mothers, one week for fathers and four weeks in cases of adoption. In the more than $2 billion budget bill for the Iowa Department of Health and Human Services, a provision prohibits money allocated for those on the state's Medicaid expansion from being used for reimbursements for sex reassignment surgery.
State Medicaid expansion work requirements also made it to the governor's desk earlier in the day; which requires 80 hours of work per month for Iowans who are able on the Iowa Health and Wellness Plan. A bill that distributes the money from the opioid settlement fund was also agreed upon by both chambers and advanced through.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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