S. 469 · Where this bill is now
In committee
Introduced in the Senate, Feb 6, 2025
What this bill does
In plain words · AI-written from the official summaryRestores family farm and small business aid exemption
When students fill out the form to apply for federal financial aid, the government counts the value of family assets to decide how much aid they need. This bill brings back an exemption that used to exclude the net worth (total value minus debts) of family farms where the family lives, or small businesses with no more than 100 employees that the family owns. Starting with the 2024-2025 school year, these assets started being counted, but this bill would exclude them again.
How it affects you
If you're a student from a family that owns a farm you live on or a small business with up to 100 employees, this could increase the federal student aid you're eligible to receive. Your family's farm or business assets wouldn't be counted against you when the government figures out your financial need.
Read the official summary (Introduced in Senate, Feb 6, 2025)
Family Farm and Small Business Exemption Act
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.
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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 469
A BILL
Family Farm and Small Business Exemption Act
Sponsor: Sen. Joni Ernst (R-IA) · Introduced Feb 6, 2025 · Education · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 6, 2025: “Read twice and referred to the Committee on Health, Education, Labor, and Pensions.”