Iowa

Iowa businesses will see $1.2 billion unemployment tax cut under bill sent to Kim Reynolds

Published

10 months ago

May 14, 2025

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Iowa businesses will see .2 billion unemployment tax cut under bill sent to Kim Reynolds

Iowa lawmakers have passed Gov. Kim Reynolds’ bill to cut unemployment taxes for businesses, resulting in more than a $1 billion tax cut over five years.
The bill would cut in half the amount of wages on which businesses pay unemployment taxes, as well as lower the maximum unemployment tax rate from 7% to 5.4% and reduce the number of tax tables.
Republicans said Iowa’s high unemployment trust fund balance shows the state is over-collecting, while Democrats said the bill gives corporations a tax break and fails to help workers.

Iowa businesses will see a nearly $1.2 billion tax cut on the money they pay into the state’s unemployment trust fund under a proposal lawmakers passed and is headed to Gov. Kim Reynolds for her signature.

In a statement, Reynolds said Iowa’s unemployment tax “has needlessly punished Iowa businesses.”

“Our unemployment trust fund balance is at an all-time high of nearly $2 billion, while the duration of unemployment claims is at a record low of around nine weeks,” she said. “We’re clearly over-collecting.”

Reynolds called for the unemployment tax cut in her Condition of the State address in January. The bill would cut in half the amount of wages on which businesses pay unemployment taxes, as well as lower the maximum unemployment tax rate from 7% to 5.4% and reduce the number of tax tables.

Those taxes flow into Iowa’s unemployment trust fund, which pays unemployment benefits to workers when they are laid off.

“Passing this bill means nearly $1 billion in savings over five years for Iowa businesses of all sizes,” Reynolds said. “Thank you to our legislators and key stakeholders for their support to help attract new business to Iowa and place existing businesses on a level playing field with our neighboring states.”

The Iowa Senate voted 32-16 along party lines on May 14 to pass the bill, Senate File 607. House lawmakers followed a few hours later with a party-line vote of 60-27.

Democrats said the bill gives businesses a tax break while doing nothing to help workers.

“Fundamentally, my Democratic colleagues and I do not believe that we should be helping our employers on the backs of our workers,” said Senate Minority Leader Janice Weiner, D-Iowa City.

Democrats seek to restore unemployment benefits cut by Republicans in 2022

Democrats argued the tax cuts for employers are possible because of a 2022 law passed by Republicans that cut the maximum number of weeks Iowans can receive benefits from 26 weeks to 16.

They offered amendments to restore Iowa to 26 weeks of unemployment benefits, or 39 weeks in the case of a plant closure. Republicans voted the proposals down.

Sen. Janet Petersen, D-Des Moines, read a list of Iowa companies that have laid off workers this year.

“These are real Iowans facing real job losses just this year,” she said. “And instead of helping them, you want to pull money out of Iowa’s unemployment insurance system to give another corporate tax break to companies that are laying them off.”

Sen. Adrian Dickey, R-Packwood, said Iowans still get 26 weeks of unemployment benefits if there is a plant closure, although that number is down from 39 weeks before the 2022 law.

“When a business does close its doors and goes out of business, we have been compassionate about that issue by moving that to six months of unemployment benefits,” he said.

Sen. Molly Donahue, D-Cedar Rapids, urged Republicans to “stand behind workers.”

“Our unemployment system is rigged for the employers, particularly with this bill,” she said. “It is the workers who hold businesses up and we need to do better by those workers, not give even more breaks to the employers who are laying them off.”

Dickey said the 2022 law included changes that has helped Iowa Workforce Development get Iowans back to work sooner after they are laid off, lowering the state’s average unemployment duration to nine weeks.

“The Republican Party has been the party to stand up for Iowa workers,” he said. “We are the party that wants our workers to aspire more than desiring an unemployment check.”

How much would Iowa employers save in unemployment taxes?

According to an analysis by the nonpartisan Legislative Services Agency, businesses would see a $1.18 billion tax cut over five years if the bill becomes law.

That would amount to roughly $200 to $250 million less that businesses pay into the unemployment trust fund each year, according to the agency’s estimates.

2026: $193.2 million
2027: $229.4 million
2028: $241.2 million
2029: $253.5 million
2030: $266.3 million

The Legislative Services Agency estimates that Iowa’s unemployment trust fund balance will rise to $2.06 billion in 2026, the first year lower tax rates would take effect. In 2030, the agency estimates the trust fund balance will stand at $1.78 billion.

Will businesses use the savings to help employees?

The bill says employers should use any savings they receive from the tax cuts to pay for employee salaries or benefits or to use as an alternative to unemployment benefits during periods of seasonal layoffs.

House Democrats tried to amend the bill to make that mandatory.

Rep. J.D. Scholten, D-Sioux City, said “knowing what you should do and actually doing it are two different things.”

“Coming into session I came with a mindset that I should eat healthy, but that didn’t happen,” Scholten said, getting laughs from his colleagues.

Corporations should take care of workers, he added, “but that’s not reality.”

“Let me be clear: billionaires do not work harder than the working class,” Scholten said. “It’s bills like this that put a thumb on the scale towards billionaires and towards multinational corporations.”

Rep. David Young, R-Van Meter, said the Democrats’ amendment would create a mandate on businesses and could prevent them from spending money on new equipment or other ways of improving the business.

“While many of us would like to see and encourage employers to use all the savings from the bill on their employees, businesses may need flexibility in difficult economic times,” he said. “And this could actually result in harm to employees instead by tying the hands of employers to strengthen and grow their business.”

Iowa has nearly $2 billion in its unemployment trust fund

Iowa had $1.95 billion in its unemployment trust fund as of May 12.

As of Jan. 1, 2024, Iowa ranked ninth in the country for unemployment trust fund balance, at $1.8 billion, ahead of more populous states.

Democrats pointed out that Reynolds used $727 million in federal COVID-19 relief funds to shore up the fund during the pandemic.

Sen. Zach Wahls, D-Coralville, said it’s a good thing that Iowa has a high trust fund balance, raising concerns about what could happen if a recession hits.

“When the whole point of the fund is to be ready for a rainy day and you see storm clouds on the horizon, you want that fund to be full,” he said. “Because what you don’t want is to have to raise taxes when you’re headed into a recession to make up for a shortfall.”

Dickey said the unemployment trust fund is structured so that if the fund dips below a certain level, businesses move to a higher tax rate so the fund is replenished.

“I don’t agree that those scenarios are coming from an economic standpoint,” he said. “But if they are, the fund is structured to handle those situations.”

How does Iowa’s unemployment insurance taxable wage base compare with other states?

Iowa currently taxes businesses on about $39,500 of an employee’s wages.

That ranks Iowa 12th in the country for its taxable wage base for unemployment insurance.

Iowa’s wage base is the second-highest among surrounding states, second to Minnesota ($43,000).

Reynolds’ proposal would cut that number in half, meaning Iowa would tax businesses on about $19,800 of an employee’s wages.

Iowa would still tax more wages than South Dakota ($15,000), Wisconsin ($14,000), Kansas ($14,000), Illinois ($13,916), Missouri ($9,500), Michigan ($9,000) and Nebraska ($9,000).

The governor’s proposal would also lower the top rate paid by employers from 7% to 5.4%, reducing both the tax itself and the base they pay the taxes on.

(This story was updated because an earlier version included an inaccuracy.)

Stephen Gruber-Miller covers the Iowa Statehouse and politics for the Register. He can be reached by email at sgrubermil@registermedia.com or by phone at 515-284-8169. Follow him on X at @sgrubermiller.

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Iowa

‘¿Habla español?’ Iowa schools look overseas to find Spanish teachers

Published

6 hours ago

March 11, 2026

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‘¿Habla español?’ Iowa schools look overseas to find Spanish teachers

The Exchange Visiting Teachers from Spain helps schools find qualified Spanish teachers.
World language teaching positions are hard to fill in rural areas.

The sounds of Dallas Center-Grimes High School Spanish students singing “¿Por Que Te Vas?” by Jeanette with varying levels of gusto and prodding by teacher Antton Zuazu Hernández may seem like an unusual way to learn.

But the sing-along is how Zuazu Hernández, a native of Spain, helps engage his students and share his culture as part of a teacher-exchange program.

“I feel I’m a messenger in a way, and this is part of the program,” he said. “We’re expected to both bring our culture here and bring your culture back to Spain.”

Zuazu Hernández — who taught English in Spain — is among 26 bilingual teachers in Iowa as part of an exchange program between the Iowa Department of Education and Spain’s Ministry of Education and Culture.

“(The program) was created to address the shortage of qualified Spanish teachers in the state and helps expose students to different world cultures,” said Heather Doe, the department’s spokesperson. “… The Exchange Visiting Teachers from Spain program has been very successful in helping schools, especially in rural communities, hire highly qualified Spanish teachers.”

Iowa has nearly 1,200 world language teachers in kindergarten through college, according to the Iowa World Language Association website.

Some foreign language teachers in Iowa moved to the U.S. and later obtained teaching credentials. Others were recruited to work in Iowa schools.

Iowa schools, including Waukee Community School District, even offer financial incentives as a recruitment tool for hard to fill positions.

“Many of them, like me, will arrive with teaching experience from our home countries, but in the process of validating the credentials in the U.S. we find obstacles,” said Elizabeth Bulthuis, a Waukee High School world languages teacher who immigrated from Ecuador in 2003, “and the validating of credentials also can be lengthy and costly, because of all the educational systems and how they are structured differently.”

Exchange program is beneficial to schools, superintendent

The Spain exchange program — which brings hundreds of teachers to schools across the U.S. — comes with several requirements.

The Spanish teachers must be certified in the language with at least two years of experience, Doe said. Additionally, candidates go through a vetting process at the federal, state and local levels. Teachers also attend a three-day state orientation.

Schools and districts participating in the program pay an $895 fee to offset licensing and orientation costs, Doe said.

The program is a blessing for rural areas struggling to fill positions teaching foreign language, special education, math and science.

“It’s very difficult to even get an applicant,” said Deron Stender, the superintendent at the rural Creston Community School District, “… When I say it’s difficult to even find (the candidates) they don’t exist. And if they do, they’re probably going to be in a larger metro, urban, suburban areas where there’s just more opportunities.”

St. Anthony’s conducts bilingual class for its students

St. Anthony’s Catholic school brings Spanish speaking teachers to the U.S. to teach students the language.

Zuazu Hernández taught Spanish and drove a bus at Creston during the 2024-25 school year. But falling enrollment and budget cuts resulted in his position being eliminated.

A program drawback is teachers only have three-year visas, he said.

“When you have a very good individual that comes to your district from a foreign country after the third year, you still have that need again,” Stender said. “So, we just open it back up to the same program, but you’re doing another refresh of the process, and while that’s a challenge, it’s still better than not having a teacher in the classroom.”

Not every world language teacher comes from Spain

Another issue schools have faced is filling teaching positions for immersion programs.

In the early 2000s, St. Anthony’s started a Spanish-immersion program after several families with children of Honduras and Guatemala descent wanted their kids to have a Catholic school education and maintain their connection to the Spanish language.

“A lot of teachers go to school to teach Spanish, but they go to school to teach it as a standalone Spanish class,” principal Jennifer Raes said. “… We were really searching for teachers that could come here and teach in any subject, just a regular teacher, but also has the skills of teaching in Spanish and English.”

Marisol Guerra, a Honduras native, came to the U.S. in 2010 to help start St. Anthony’s program. Guerra manage to come to the U.S. as part of that year’s Spain exchange program cohort.

More than a decade later, the school offers classes in English and an immersive track where 85% of the students’ day is spent learning in Spanish. While families were hesitant in the beginning to take part in the immersion program, there is now a waitlist of almost a dozen families.

“There was uncertainty, (but) they wanted their children to learn a second language,” Guerra said, “and they wanted without knowing, I think, they also were exposing them to other cultures and opening their minds to other things.”

The over the years, St. Anthony’s has employed teachers who moved to America from Spain, Mexico and other Latin American countries.

The over representation of teachers from Spain likely is due to other countries not offering similar exchange programs, said Bulthuis, a member of the Iowa World Language Association.

It took several years for the veteran teacher — who came to Iowa in 2005 — to become credentialed to teach in the U.S. because she was not part of an exchange program.

“I think that world language teachers can be difficult to recruit because the pool of candidates is relatively small, so teachers need a strong language proficiency, cultural knowledge and all the teaching certifications,” said Bulthuis, who left Ecuador in 2003 because of the country’s financial crisis, “(but) many people who speak another language also have opportunity in other careers.”

Bulthuis does not recommend loosening the criteria to teach in Iowa but suggests improving or streamlining the process for an international teacher to obtain a state teaching license.

“… Not every Spanish speaking country is going to have (an exchange) program like that in place to help their community,” Bulthuis said,

Cultural exchange

Educators say employing international teachers goes beyond language skills.

“International educators can bring tremendous cultural and linguistic expertise to the classroom, which is an incredible skill and very valuable for students,” Bulthuis said.

That cultural exchange can carry over into a school’s lesson plans.

Zuazu Hernández often lets his American students’ interests drive what he teaches them about Spanish culture. These questions have ranged from wanting more insight into bullfighting, the Spanish school system, stereotypes and politics.

“Sometimes, they are more interested in me as a person, or the things I can tell them about Spain than the actual Spanish language,” he said, “but they have that curiosity that I think all teachers, we have to take advantage of.”

While reading “¡Viva el toro!” by Lisa Ray Turner and Blaine Ray, a novel about bullfighting, Zuazu Hernández talked to students about his family’s love of the cultural spectacle and how it is losing popularity in Spain because of how the bulls are treated.

Zuazu Hernández is open about his perspective on the practice to his students.

“To me, bullfighting is not worth sustaining just because it’s a tradition — traditions are not always good or acceptable — but rather because it’s an art, and it expands the depth of human understanding of the most intense truths in life, with death as the scariest of all,” he told the Des Moines Register in an email.

His students appreciate his candidness and the chance to learn from teachers with different lived experiences.

“I like having different teachers because they have different experiences, and I think it adds to the overall class,” said Grace Heston, an 11th grader Dallas Center-Grimes High School. “When you’re learning about Spanish, you’re not just learning about a language, you’re learning about the culture associated with it.”

Samantha Hernandez covers education for the Register. Reach her at (515) 851-0982 or svhernandez@gannett.com.

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Iowa

NCAA Wrestling Championships at-large bids announced

Published

18 hours ago

March 10, 2026

Press Room

NCAA Wrestling Championships at-large bids announced

The 330 wrestlers competing in Cleveland at the NCAA Championships are now set.

After the conference tournaments established the lion’s share of wrestlers, the NCAA announced the at-large bids on Tuesday, March 10, completing the rest of the field.

Brackets and seeds will be announced on March 10, but here’s a look at the contingents each state of Iowa program will be sending after the at-large bids were announced.

Iowa wrestling NCAA qualifiers

For the third year in a row, Iowa wrestling will be sending nine to the NCAA Championships. Victor Voinovich did not earn an at-large bid at 157 pounds after finishing ninth at the Big Ten Championships, one place outside of NCAA automatic qualification. He concludes his season with a 12-6 record.

Voinovich narrowly earned the starting job over Jordan Williams at 157, with Iowa coach Tom Brands saying it was very close, but Voinovich had shown a little more “fight” this year. Now that Voinovich hasn’t qualified for NCAAs, it’s a decision that will go further under the microscope.

What’s done is done, however, for Iowa. They’ll take Dean Peterson (125), Drake Ayala (133), Nasir Bailey (141), Ryder Block (149), Michael Caliendo (165), Patrick Kennedy (174), Angelo Ferrari (184), Gabe Arnold (197) and Ben Kueter (285) to Cleveland in hopes of salvaging what has been a tough season.

Iowa State wrestling NCAA qualifiers

For the first time since 2010, Iowa State will send all 10 wrestlers to the NCAA Championships. Vinny Zerban earned an at-large bid at 157 pounds despite falling short of the automatic qualifying threshold at the Big 12 Championships. Zerban suffered a concussion and medically forfeited out of the tournament after his first match in Tulsa. His health status will be worth monitoring NCAAs inch closer, from March 19-22.

The Cyclones look poised for one of their best postseasons in recent memory with their 10 qualifiers ―Stevo Poulin (125), Garrett Grice (133), Anthony Echemendia (141), Jacob Frost (149), Zerban, Connor Euton (165), MJ Gaitan (174), Isaac Dean (184), Rocky Elam (197) and Yonger Bastida (285). The loss of Evan Frost hurts the Cyclones, considering his pedigree and season as a whole, but Grice’s has earned several ranked wins since entering the lineup in February and could still add some much-needed team points as the team chases a team trophy.

Behind title contenders Elam and Bastida, proven podium threats in Poulin, Echemnedia, Jacob Frost and Zerban (if healthy), Iowa State will be in the mix for a top-four finish in Cleveland.

UNI wrestling NCAA qualifiers

Northern Iowa will send five to the NCAA Championships. Automatic qualifiers Julian Farber (133), Caleb Rathjen (149) and Ryder Downey (165) will be joined by Jared Simma (174) and Nick Fox (184), who each earned at-large bids. The number of qualifiers could extend to six, with Trever Anderson (125) being the alternate at 125 pounds for NCAAs. However, he had to medically forfeit out of the Big 12 Championships, so his health status would be in question if he got called up.

With that, Max Brady (141), Cael Rahnavardi (157), John Gunderson (197) and Adam Ahrendsen (285) will have their seasons come to an end. Brady, a true freshman, will still have three NCAA chances in his career after showing promising moments in relief of Cory Land’s season-ending injury. Gunderson, a U23 World team member, will return for next season as well. Rahnavardi and Ahrendsen were both in their final seasons of eligibility.

Following injuries to Land and Wyatt Voelker, it’s been a hard year for the Panthers. This is half the number of NCAA qualifiers that UNI had last season when they qualified 10 for the first time since 1986. The last time UNI had five or fewer qualifiers was 2016.

However, all five of their wrestlers have each shown moments of brilliance, either this season or in prior NCAA Championships. They may be a smaller crew than normal, but Downey, Rathjen, Farber, Simma and Fox are all ones to watch in Cleveland.

Eli McKown covers high school sports and wrestling for the Des Moines Register. Contact him at Emckown@gannett.com. Follow him on Twitter at @EMcKown23.

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Iowa

DCI agent say he was fired for questioning Iowa college gambling probe

Published

1 day ago

March 10, 2026

Press Room

DCI agent say he was fired for questioning Iowa college gambling probe

A former Iowa investigator is suing the state, claiming he was fired for criticizing a high-profile college sports gambling probe.
Mark Ludwick alleges his termination was retaliation for testifying that investigators conducted illegal searches and were told to mislead students.
The gambling investigation, which led to charges against dozens of student-athletes, has faced legal challenges over its methods.

A longtime investigator for the Iowa Division of Criminal Investigation says he was forced out of the agency because he voiced reservations about a high-profile investigation into gambling in college athletics.

Mark Ludwick was hired by Iowa’s top investigative agency in 1997 and was terminated in November 2024, according to a lawsuit filed Feb. 20 in Polk County. According to his complaint, Ludwick was fired after two “frivolous” investigations, one claiming he’d exceeded the speed limit driving to a murder scene, and the other for assistance he provided to a domestic abuse victim.

The real reason, Ludwick alleges, is that officials were embarrassed after Ludwick testified under oath about what he regarded as weaknesses in their sports wagering investigation, which resulted in dozens of Iowa State University and University of Iowa student-athletes facing suspensions, 25 being criminally charged and 19 pleading guilty to underage gambling.

Ludwick testified in early 2024 he believed investigators had conducted illegal searches to identify the online gamblers and that he and other agents had been directed to lie to students about whether they were subjects of the investigation. He also alleged that stress about the case contributed to another agent’s fatal heart attack, although the agent’s relatives disputed the connection.

Now Ludwick is accusing the state of violating Iowa’s whistleblower protection statute. He declined through his attorney to comment. The Iowa Attorney General’s Office also declined to comment, and the Iowa Department of Public Safety, which includes the DCI, did not respond to an inquiry about the case.

Gambling investigation raised constitutional concerns

In the gambling investigation, DCI investigators used software tools provided by GeoComply, a Canadian company that contracts with online sportsbooks like FanDuel and DraftKings, to look for evidence of illegal gambling activity. Using a GeoComply system, the investigators created a so-called “geofence” around college athletic facilities that allowed them to detect student athletes using wagering accounts registered to parents and friends to place bets ― sometimes on their own games.

Although the investigation resulted in numerous arrests and suspensions, it also drew controversy, in particular for agents’ failure to obtain warrants before conducting their location searches. GeoComply, which had encouraged Iowa to use its service, responded by cancelling the state’s access.

A large group of current and former students sued the state, accusing investigators of violating their constitutional rights. In November 2025, a federal judge ruled that the state’s investigation “does not comport with the Fourth Amendment,” which provides protection from illegal searches.

Nonetheless, the court dismissed the lawsuit, finding the officers involved were entitled to immunity. An appeal is pending.

Ludwick’s reservations emerge in depositions

Ludwick was an experienced investigator for the DCI, working on high-profile cases including the 2015 murder of Shirley Carter, whose son was tried and acquitted, and the 2017 deaths of two girls in a fire started by a relative.

While not the lead agent on the 2023 gambling investigation, Ludwick was tapped to assist by interviewing some of the student athletes. He later testified he grew concerned that the state’s geofence searches amounted to illegal, warrantless searches, and declined to participate in the case any further. He alleges that other DCI agents shared his concerns and also maneuvered to avoid being involved in the case.

Ludwick says he reported his concerns to his superiors. In January 2024, he was deposed by defense attorneys for four of the students, and “testified truthfully during his deposition that he believed an illegal search had been conducted.” Defense attorneys cited Ludwick’s remarks within days in filings covered by numerous media outlets, including the Des Moines Register, which “caused embarrassment and increased scrutiny for the Iowa Department of Public Safety, Commissioner Bayens, and other employees,” Ludwick’s suit states.

According to the complaint, officials launched an investigation into Ludwick for speeding on March 5, weeks after the embarrassing testimony was reported. On Aug. 8, officials initiated a second investigation after, Ludwick says, “he attempted to help a victim of domestic abuse flee her abuser.” He denies his actions violated Iowa law or department policy.

William Morris covers courts for the Des Moines Register. He can be contacted at wrmorris2@registermedia.com or 715-573-8166.

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