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Trump pushes House GOP to pass his budget bill; Medicaid critical for maternal and infant health in rural CO; Fear of detention prevents some WA migrants from getting food; Report says many AL adults want college degrees but face barriers; MT Native leaders say civic engagement brings legislative wins.

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Kristi Noem incorrectly defines habeas corpus during a Senate hearing. Senate passes a bipartisan bill to eliminate taxes on tips, and Native American civic engagement fosters legislative wins in the West.

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New Mexico's acequia irrigation system is a model of democratic governance, buying a house in rural America will get harder under the Trump administration's draft 2026 budget, and physicians and medical clinics serving rural America are becoming a rarity.

Iowa lawmakers advance $1 billion cut to unemployment program

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Thursday, March 13, 2025   

The Iowa Legislature has advanced a bill to provide a $1 billion tax cut to companies covering unemployment benefits for out-of-work Iowans.

Iowa lawmakers reduced the maximum number of weeks Iowans could file for unemployment benefits in 2022 from 26 weeks to 16. The money the state has saved by not paying the additional benefits went into a trust fund, which has reached nearly $2 billion. Now, lawmakers are giving half the money back to business in the form of a tax cut.

Peter Hird, secretary-treasurer of the Iowa Federation of Labor, said Senate File 504 is a blow to people who are looking for work and now have a lot less time to find it while watching companies get a tax cut.

"If you take a benefit, a protection for workers, and then turn that into a tax savings for employers, it's a totally man-made tax cut," Hird pointed out. "This isn't just because of good luck."

The bill is through committee and awaits action on the Senate floor. Gov. Kim Reynolds said she is following through on a campaign pledge to lower taxes for Iowa companies, making the state more attractive to those considering locating in the state.

Hird noted labor groups also worry about what happens in the event of an unexpected economic downturn and added the fears are prominent in rural Iowa.

"Especially if you're working in the ag sector where your job is at stake, and you're talking about giving more benefits to rich people?," Hird emphasized. "I feel like that's just something that's resonating across the country right now."

Reynolds has proposed cutting the highest unemployment tax rate companies pay from 7% to 5.4%, which would save them nearly a billion dollars over five years.

Disclosure: The Iowa Federation of Labor contributes to our fund for reporting on Environmental Justice, Livable Wages/Working Families, Social Justice, and Urban Planning/Transportation. If you would like to help support news in the public interest, click here.


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