DES MOINES, Iowa - Iowa is joining a growing number of Republican-led states to end increased unemployment benefits from the federal government.
Governor Kim Reynolds announced Tuesday the state will stop the extra $300 dollar weekly payments on June 12th.
She said the payments are discouraging people from returning to work, echoing statements from some other Republican governors in the past week.
President Biden's administration says data does not support that argument, instead claiming vaccination rates, childcare and school reopenings are all contributing to a shortage of workers.
Iowa Workforce Development Director Beth Townsend said the overwhelming message from employers is the lack of workers, which is "adversely affecting their ability to recover from the pandemic."
Other Republican led states, including Alabama, Arkansas, Montana, and South Carolina have all taken official steps to opt out of the $300 enhanced unemployment benefit.
Governor Reynolds also announced Tuesday that effective June 13, Iowa will no longer waive employer charges for COVID-related unemployment insurance claims. The move means employers will also receive less aid as the state recovers from the pandemic.
Iowa's unemployment rate of 3.7 percent is tied for 4th lowest in the country.