Family Farm and Small Business Exemption Act
Sponsored By: Senator Ernst, Joni [R-IA]
Introduced
Summary
Restores an exemption to keep the net worth of family farms and qualifying small businesses out of FAFSA asset calculations. The bill would exclude the net value of a family farm where the family lives and of a family-owned small business with up to 100 full-time or full-time equivalent employees from the Title IV need-analysis process.
Show full summary
- Families on a family farm would not have the farm's net worth counted in FAFSA asset totals, removing a large illiquid asset from the calculation.
- Families that own and control a small business with no more than 100 full-time equivalent employees would likewise exclude that business's net value from FAFSA assets.
- Students from those households would report lower counted assets on federal need forms, which can change their assessed need for federal student aid.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Exclude family farms and small businesses
This bill would change how Title IV need analysis counts family assets. It would allow families to exclude the net value of a family farm they live on. It would also allow families to exclude the net value of a small business they own and control. That business must have no more than 100 full-time or full-time-equivalent employees. If enacted, the change would apply to Part F need analyses for award years beginning on or after the date of enactment. Affected dependent students and their families could see higher federal student aid or larger awards.
Sponsors & CoSponsors
Sponsor
Ernst, Joni [R-IA]
IA • R
Cosponsors
Sen. Bennet, Michael F. [D-CO]
CO • D
Sponsored 2/6/2025
Sen. Grassley, Chuck [R-IA]
IA • R
Sponsored 2/6/2025
Sen. Marshall, Roger [R-KS]
KS • R
Sponsored 2/6/2025
Sen. Justice, James C. [R-WV]
WV • R
Sponsored 2/6/2025
Sen. Moran, Jerry [R-KS]
KS • R
Sponsored 2/6/2025
John Hoeven
ND • R
Sponsored 2/6/2025
Mike Rounds
SD • R
Sponsored 2/6/2025
John Boozman
AR • R
Sponsored 2/6/2025
Sen. Tillis, Thomas [R-NC]
NC • R
Sponsored 2/6/2025
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 2/11/2025
Sen. Tuberville, Tommy [R-AL]
AL • R
Sponsored 6/11/2025
Sen. Gallego, Ruben [D-AZ]
AZ • D
Sponsored 9/2/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov