Family Farm and Small Business Exemption Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
This bill aims to restore an exemption for family farms and small businesses when determining eligibility for federal student aid. Currently, the value of these farms and businesses is considered when calculating a student’s financial need. This legislation would exclude the net worth of family farms (where the family resides) and small businesses (with 100 or fewer employees owned by a family) from this calculation. It seeks to ensure that these businesses and their families are not unfairly penalized when applying for student financial assistance.
Key provisions
- Restores an exemption for family farms from asset calculations.
- Restores an exemption for small businesses from asset calculations.
- Specifically defines a family farm as one on which the family resides.
- Specifically defines a small business as having no more than 100 full-time employees owned by a family.
- Applies to need analysis conducted under part F of title IV of the Higher Education Act.
- The exemption applies to award years beginning after the bill’s enactment.
Who is affected
- Family farmers
- Small business owners
- Students applying for federal student aid
- Families owning family farms and small businesses
- Institutions providing federal student aid
Notable changes
- Reverses a 2024-2025 change to the FAFSA that included the net worth of family farms and small businesses in need analysis.
Bill text
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Sponsors
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14 on record
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Cosponsors
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