Family Farm and Small Business Exemption Act

# Family Farm and Small Business Exemption Act Summary **What the bill does:** This bill would restore a previous rule that excluded the value of family farms and small businesses from being counted as assets when determining how much federal student aid a family qualifies for. Under current rules (starting in 2024-2025), the net worth of family farms and small businesses are now counted like other assets, which can reduce the amount of aid students from these families receive. The bill would change this back to the old system for farms where the family lives and small businesses with 100 or fewer employees that are family-owned. **Who it affects:** The bill primarily benefits students whose families own farms or small businesses.

By excluding these assets from aid calculations, students from farming and small business families could potentially qualify for more federal student aid (grants and loans). It could also indirectly affect college affordability for these populations. **Current status:** The bill was introduced in the 119th Congress by Senator Joni Ernst (R-Iowa) and is currently in committee, meaning it has not yet been voted on by the full Senate. No action has been taken on it yet.