Iowa Gov. Reynolds directs $490 million of CARES Funds into Unemployment Trust Fund

Iowa News

File-This June 18, 2020, file photo shows Iowa Gov. Kim Reynolds updating the state’s response to the coronavirus outbreak during a news conference at the Statehouse, in Des Moines, Iowa. Reynolds on Monday, June 29, 2020, signed into law a bill that requires women to wait 24 hours before getting an abortion, trying again to institute a restriction similar to one struck down two years ago by the Iowa Supreme Court. (AP Photo/Charlie Neibergall, Pool, File)

DES MOINES, Iowa (KCAU) – On Thursday, Gov. Reynolds announced that she has directed $490 million of the $1.25 billion in coronavirus relief funds that Iowa was provided through the CARES Act, to be deposited into the state’s Unemployment Insurance Trust Fund.

The governor’s office said the deposit will ensure that eligible Iowans continue to receive unemployment insurance benefits and will also enable Iowa employers to remain in Tax Table 7 for 2021.

“As we move forward with recovery, I want to minimize the pandemic’s impact on employers so they can focus on growing and reinvesting in Iowa,” said Gov. Reynolds. “Iowa’s employers continue to do an outstanding job during these unprecedented times and today’s action will provide them greater certainty. This move also ensures that our trust fund remains healthy and in a position to weather any storm, including COVID-19.”

“From the beginning of the pandemic, Iowa has not been charging employers with claims made by laid off employees to ensure employers would not see their tax rates go up because of these claims,” said Beth Townshend, Iowa Workforce Development Director said. “Keeping employers in Tax Table 7, saves them over $400 million in unemployment taxes.”

For more information about the Iowa Unemployment Insurance Trust Fund, click here.

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