Family Farm and Small Business Exemption Act

Bill: 119-s-469
Sponsor: full_name: Sen. Ernst, Joni [R-IA]
Introduced: 2025-02-06
Policy area: Education
Subjects: Government lending and loan guarantees

Rural conditions and development

Small business

Student aid and college costs
Latest action: action_date: 2025-02-06
text: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summaries:
action_date: 2025-02-06
action_desc: Introduced in Senate
text: <p><strong>Family Farm and Small Business Exemption Act</strong></p><p>This bill restores an exemption for certain family farms and small businesses on the Free Application for Federal Student Aid (FAFSA) form. 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 the 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 are 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 119th CONGRESS 1st Session S. 469 IN THE SENATE OF THE UNITED STATES February 6 (legislative day, February 5), 2025 Ms. Ernst (for herself, Mr. Bennet , Mr. Grassley , Mr. Marshall , Mr. Justice , Mr. Moran , Mr. Hoeven , Mr. Rounds , Mr. Boozman , and Mr. Tillis ) 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(f)(2) ) is 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) Applicability The amendments made by subsection (a) shall apply to need analysis conducted under part F of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1087kk et seq. ) for award years beginning on or after the date of the enactment of this Act.