Family Farm and Small Business Exemption Act

Bill: 118-s-1237
Sponsor: full_name: Sen. Ernst, Joni [R-IA]
Introduced: 2023-04-20
Policy area: Education
Subjects: Government lending and loan guarantees

Rural conditions and development

Small business

Student aid and college costs
Latest action: action_date: 2023-04-20
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summaries:
action_date: 2023-04-20
action_desc: Introduced in Senate
text: <p><b>Family Farm and Small Business Exemption Act</b></p> <p>This bill restores an exemption for certain family farms and small businesses under the Free Application for Federal Student Aid (FAFSA). The bill applies to the net worth of (1) a family farm on which the family resides, or (2) a small business with not more than 100 full-time or full-time equivalent employees that is owned and controlled by the family.</p> <p>Prior to recent changes made to FAFSA, the net worth of these family farms and small businesses were excluded as assets when calculating a student's financial need to determine federal student aid eligibility. Beginning with the 2024-2025 academic year, the net worth of these farms and businesses will be treated as an asset and therefore included in the calculation. This bill restores the exemption to exclude such net worth from the calculation.</p>

tv_txt: II 118th CONGRESS 1st Session S. 1237 IN THE SENATE OF THE UNITED STATES April 20, 2023 Ms. Ernst (for herself, Mr. Tester , Mr. Grassley , Ms. Lummis , Mr. Ricketts , Mr. Moran , and Mr. Braun ) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To restore the exemption of family farms and small businesses from the definition of assets under title IV of the Higher Education Act of 1965.

1. Short title This Act may be cited as the Family Farm and Small Business Exemption Act . 2. Exempting family farms and small businesses from assets under the Higher Education Act of 1965 (a) In general Section 480(f)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1087vv ), as amended by section 702(l)(2) of the FAFSA Simplification Act (title VII of division FF of Public Law 116–260 ; 134 Stat. 3163), is further amended— (1) by striking net value of the and inserting the following: net value of— (A) the ; (2) by striking the period at the end and inserting a semicolon; and (3) by adding at the end the following: (B) a family farm on which the family resides; or (C) a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family. . (b) Effective date The amendments made by subsection (a) shall take effect as if included in the FAFSA Simplification Act (title VII of division FF of Public Law 116–260 ) and subject to the effective date of section 701(b) of such Act, as amended by section 102(a) of the FAFSA Simplification Act Technical Corrections Act (division R of Public Law 117–103 ) (including the authorization provided under section 102(c)(1)(A) of such Act).