What This Bill Does
This bill changes the rules for calculating how much money a family has when applying for federal student aid. It says that family farms and small businesses should not count as assets when determining how much aid a student qualifies for. The bill restores an exemption that was removed by a previous law called the FAFSA Simplification Act.
Who It Affects
Students whose families own family farms or small businesses. The bill affects how federal student aid is calculated for these students.
Key Provisions
• Family farms where the family lives are excluded from the definition of assets when calculating student financial aid eligibility (Sec. 2(a))
• Small businesses with no more than 100 full-time or full-time equivalent employees (meaning workers who work the full standard number of hours) that are owned and controlled by the family are excluded from the definition of assets when calculating student financial aid eligibility (Sec. 2(a))
What Changes
If this bill becomes law, family farms and small businesses will no longer count as assets when determining how much federal student aid a family qualifies for. Previously, these assets were counted against families applying for student aid.
Important Definitions
Full-time equivalent employees: workers measured as the equivalent of full-time positions, which can include part-time workers whose hours combined equal full-time work.
Effective Date
The amendments take effect as if they were included in the FAFSA Simplification Act, subject to the effective date of section 701(b) of that Act as amended by the FAFSA Simplification Act Technical Corrections Act.
I
118TH CONGRESS
1ST SESSION H. R. 1250
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.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 28, 2023
Mr. MANN (for himself, Mr. PANETTA, Mr. DAVIS of North Carolina, Mr.
MOORE of Alabama, Mrs. MILLER of Illinois, Mrs. CHAVEZ-DEREMER,
Mr. MEUSER, Mrs. CAMMACK, Mr. ELLZEY, Mr. GUEST, Ms. HAGEMAN,
Mr. MOYLAN, Mr. LATURNER, Mr. SORENSEN, Mr. BERGMAN, Mr.
LAMALFA, Mr. LUCAS, Mr. FEENSTRA, Mr. DESJARLAIS, Mr. BACON,
Mr. C. SCOTT FRANKLIN of Florida, Mr. NUNN of Iowa, Mrs. MILLER-
MEEKS, Ms. PEREZ, Mr. MCCAUL, Mr. AUSTIN SCOTT of Georgia, Mr.
STEUBE, Mr. VALADAO, and Mr. FINSTAD) introduced the following bill;
which was referred to the Committee on Education and the Workforce
A BILL
To restore the exemption of family farms and small busi-
nesses from the definition of assets under title IV of
the Higher Education Act of 1965.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Family Farm and
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Small Business Exemption Act’’.
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•HR 1250 IH
SEC. 2. EXEMPTING FAMILY FARMS AND SMALL BUSI-
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NESSES FROM ASSETS UNDER THE HIGHER
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EDUCATION ACT OF 1965.
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(a) IN GENERAL.—Section 480(f)(2) of the Higher
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Education Act of 1965 (20 U.S.C. 1087vv), as amended
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by section 702(l)(2) of the FAFSA Simplification Act
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(title VII of division FF of Public Law 116–260; 134 Stat.
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3163), is further amended—
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(1) by striking ‘‘net value of the’’ and inserting
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the following: ‘‘net value of—
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‘‘(A) the’’;
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(2) by striking the period at the end and insert-
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ing a semicolon; and
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(3) by adding at the end the following:
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‘‘(B) a family farm on which the family re-
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sides; or
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‘‘(C) a small business with not more than
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100 full-time or full-time equivalent employees
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(or any part of such a small business) that is
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owned and controlled by the family.’’.
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(b) EFFECTIVE DATE.—The amendments made by
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subsection (a) shall take effect as if included in the
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FAFSA Simplification Act (title VII of division FF of
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Public Law 116–260) and subject to the effective date of
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section 701(b) of such Act, as amended by section 102(a)
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of the FAFSA Simplification Act Technical Corrections
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•HR 1250 IH
Act (division R of Public Law 117–103) (including the
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authorization provided under section 102(c)(1)(A) of such
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Act).
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Æ
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