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.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The Family Farm and Small Business Exemption Act amends the Higher Education Act of 1965 to exclude the net value of family farms (where the family resides) and small businesses (with 100 or fewer employees, owned and controlled by the family) from the asset calculation used to determine federal financial aid eligibility. The change applies to award years beginning on or after the date of enactment.
Who Benefits and How
Families who own farms or small businesses and have children applying for federal student aid benefit directly. Under current rules, the value of a family farm or business inflates the Expected Family Contribution, reducing eligibility for Pell Grants, subsidized loans, and other need-based aid. This exemption would make these families appear less wealthy on the FAFSA, increasing their aid eligibility.
Who Bears the Burden and How
The federal government bears the cost through increased financial aid disbursements, as more farm and small business families qualify for need-based aid. Other financial aid applicants may face slightly more competition for limited institutional aid funds. Taxpayers broadly absorb the increased Pell Grant and subsidized loan expenditures.
Key Provisions
- Excludes family farms (where the family resides) from FAFSA asset calculations
- Excludes small businesses with 100 or fewer full-time equivalent employees that are family-owned and controlled
- Applies to award years beginning on or after the date of enactment
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Exempts the value of family farms and small businesses (up to 100 employees) from being counted as assets in federal financial aid need analysis under the Higher Education Act of 1965.
Key Policy Areas
Higher Education, Financial Aid, Agriculture, Small Business
Primary Purpose
Exempts the value of family farms and small businesses (up to 100 employees) from being counted as assets in federal financial aid need analysis under the Higher Education Act of 1965.
Policy Domains
FAFSA asset exemption for farms and small businesses
Identified Gains
- Farm families with college-age children
- Small business owner families seeking federal student aid
Identified Costs
- Federal government (increased financial aid expenditures)
- Other financial aid applicants (increased competition for limited institutional aid)
Sponsors
Legislative Progress
IntroducedMr. Mann (for himself, Mr. Panetta, Mr. Thompson of Pennsylvania, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Small business owner families applying for federal student aid
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "families"
- → Families owning farms or small businesses applying for federal student aid
- "institutions"
- → Colleges and universities distributing federal aid
- "education_dept"
- → Department of Education (administering FAFSA)
Key Definitions
Terms defined in this bill
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
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