TEXAS — Twelve Republican-led states have opted out of federal unemployment benefits programs early, and a letter addressed to Texas Gov. Greg Abbott urges him to do the same.

The aid, which is in addition to benefits provided by states and amounts to $300 per week, comes via the American Rescue Plan. Those benefits are set to expire after Sept. 6.

The rationale for opting out - according to leadership in states including Wyoming, Idaho, Iowa, North Dakota, South Dakota, Tennessee, Alabama and others – is that the extra money is causing labor shortages. People are opting to collect a check rather than seek employment, Republican leadership says.

Spectrum News 1 has spoken to small business owners who says it has been difficult to hire employees in recent months.

An analysis by Bank of America economists found that people who had earned up to $32,000 in their previous jobs can receive as much or more income from jobless aid.

Critics, however, say unemployment benefits don’t play much of a role in labor shortages.

RELATED: U.S. unemployment claims drop to 473,000, a new pandemic low

President Biden earlier this week disputed the notion that the $300 payment is to blame for the drop-off in hiring last month. But he also urged the Labor Department to work with states on renewing requirements that recipients of unemployment aid must search for jobs and take a position if offered.

Still, the letter, sent to the governor by the Texas Association of Business, cites a lack of available labor in the state in making the request.

“Texans want to get back to work, back to school and back to normal. Employers believe that supplemental UI benefit payments from Washington is disincentivizing work and resulting in many good Texas jobs going unfilled. Most Texans would agree that a good job is better than a government program, especially now that our economy is rebounding,” the letter reads, in part.

Meanwhile, the number of Americans seeking unemployment benefits fell last week to 473,000, a new pandemic low and the latest evidence that fewer employers are cutting jobs as consumers ramp up spending and more businesses reopen. 

Thursday’s report from the Labor Department showed that applications declined 34,000 from a revised 507,000 a week earlier. The number of weekly jobless claims — a rough measure of the pace of layoffs — has fallen significantly from a peak of 900,000 in January.

As of Thursday Abbott hasn’t publicly signaled his plans.

The Associated Press contributed to this report.