Family Farm and Small Business Exemption Act

# Family Farm and Small Business Exemption Act (HR 1131) - Summary **What the bill does:** This bill would restore a previous exemption that excludes the net worth of family farms and small businesses from calculations used to determine how much federal student aid a student qualifies for. Until 2024, when FAFSA (the federal student aid application form) calculated how much aid a student needed, it didn't count the value of a family farm or small business as an asset. The new rules now include this asset value, which can reduce the amount of aid a student receives. This bill would revert to the old rules and exclude farm and business assets again. **Who it affects:** The bill primarily affects families who own farms (where they live) or small businesses with 100 or fewer employees.

By excluding these assets from aid calculations, their children could qualify for more federal student aid. It also indirectly affects rural communities and small business owners who may see their children have better access to college funding. **Current status:** The bill is currently in committee (a standard early stage), sponsored by Rep. Tracey Mann, a Republican from Kansas. It has not yet been voted on by the full House of Representatives.