Thousands to lose unemployment after bill fails

The failure of Democrat-backed bill that would have extended unemployment insurance benefits in the Senate Thursday, June 25, will cause 1,500-2,000 Iowans to begin losing all unemployment benefits each week.

Iowa Gov. Chet Culver voiced disappointment on Friday. He said the bill would also have extended the biodiesel tax credit and enhanced Federal Medicaid assistance Percentages funding, both of which are important to Iowa.

“This is not the time to turn our back on our farmers and other workers in the biodiesel industry, struggling families looking for work, children, the disabled and the elderly,” said Culver, a Democrat.

The extended unemployment benefits were part of the American Recovery and Reinvestment Act. They provided unemployed workers with an extra $25 weekly and provided extra weeks of eligibility for unemployment insurance recipients.

The Iowa Fiscal Partnership issued an analysis Friday that 6,700 Iowans will lose all benefits because they have exhausted state or federal unemployment insurance benefits. Another 37,300 will see a reduction in benefits. The group estimates ,500-2,000 Iowans will lose benefits each successive week.

The bill would have extended unemployment benefits until Dec. 31. Republicans said the measure was too expensive.