Capitol Notebook: Workforce Development leader tells Congress about Iowa benefit changes

Iowa Workforce Development Executive Director Beth Townsend testified this week in front of a U.S. House subcommittee on work and welfare, highlighting the state’s revamp of its unemployment system and new return to work program.

Townsend said Iowa modeled its Re-employment Case Management program after a similar federal program, but offers faster help to those who’ve lost their jobs

Gov. Kim Reynolds directed the program’s creation in response to a severe worker shortage that was intensified by the COVID-19 pandemic. Since its implementation in early 2022, Townsend told federal lawmakers the program resulted in better outcomes for Iowans and money saved for the state’s unemployment trust fund.

By providing one-on-one career assistance earlier in the unemployment process, typically after the first week of unemployment, Iowa has been able to drastically shorten the length of an unemployment claim by helping claimants find new careers more quickly, she said.

The average duration of an unemployment claim in Iowa has dropped from 13 weeks to 9 weeks in the more than two years since the program was implemented, according to Iowa Workforce Development.

State unemployment benefits paid in 2022 and 2023 dropped to $253 million and $260 million, respectively — the lowest level for benefits paid since 2000. As a result, Iowa businesses paid less in taxes that fund benefits for unemployed workers.

Townsend also testified that more unemployed Iowans are participating in re-employment activities and taking advantage of one-on-one assistance through the department.

“Through this program, Iowa Workforce Development has shortened the average time Iowans spend on unemployment by more than 30 percent, boosted Iowa’s available workforce and saved employers unemployment taxes in the form of lower unemployment tax rates,” she said.

“We believe our RCM program is a national model for helping put people back to work after unemployment sooner rather than later and helps those individuals find the best possible careers and job opportunities that they may not have otherwise even considered.”

Also, unemployed workers in Iowa receive 10 fewer weeks of state unemployment benefits under a law that took effect in 2022. The law reduced the length of state unemployment benefits from 26 to 16 weeks, making Iowa just the eighth state with 16 weeks or fewer of state unemployment benefits.

Workers in most states are eligible for up to 26 weeks of benefits from the regular state-funded unemployment compensation program, although 13 states provide fewer weeks, and two provide more.

The new law also changes the requirements for taking a job that pays less than the unemployed Iowan’s previous job. Republicans touted the new law as a way to encourage Iowans to take jobs sooner and to lower taxes on businesses that fund the unemployment trust fund.

Democrats and labor groups argue the law attacks workers who lose their jobs through no fault of their own, and who may lack child care or transportation to a new job.

Iowa Supreme Court awards grants for low-income legal services

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The Iowa Supreme Court approved more than $870,000 in grants to nonprofit programs across the state that provide legal assistance to low-income Iowans with civil legal issues, the court announced.

The grants are funded by the Interest on Lawyers’ Trust Accounts program, which gathers interest on certain pooled trust accounts held by Iowa lawyers. With this year’s awards, the Iowa Supreme Court has awarded more than $26 million in grants since 1985, the court said.

The grants help low-income Iowans with civil legal issues such as divorce, domestic abuse, unsafe housing and illegal convictions, according to the court. The grants to do not support criminal legal defense.

The latest round of grants were awarded to 13 organizations across the state, including nearly $438,000 to Iowa Legal Aid, a statewide organization.

The Kids First Law Center in Cedar Rapids received a $36,000 grant. The organization funds legal services to children in high-conflict divorce and custody cases in Linn and Johnson counties.

A full list of grant recipients can be found at iowacourts.gov.

Gazette-Lee Des Moines Bureau