By Jamie Martin
A bipartisan bill, the Family Farm and Small Business Exemption Act, has been introduced to protect family farms and small businesses from unfair financial aid calculations.
The legislation, co-sponsored by Rep. Mike Kelly (R-PA), aims to restore exemptions that prevent farm and small business assets from being counted as part of a family's net worth when determining federal student aid.
The bill responds to changes in the FAFSA Simplification Act, which altered how federal student aid is calculated. These changes have placed an additional financial burden on families that own farms and small businesses by treating their assets as liquid resources, even though they are often essential for business operations.
The House bill is led by Reps. Tracey Mann (R-KS) and Jimmy Panetta (D-CA), with support from House Agriculture Committee leaders. The Senate version is sponsored by Senators Joni Ernst (R-IA) and Michael Bennet (D-CO). The bill has 79 co-sponsors in the House.
"Farm families across Western Pennsylvania work hard every day to earn an honest living. From inflation to soaring operating costs, farm families have faced tough financial challenges in recent years. The deck should not be stacked against these young people who are looking to continue their education," said Rep. Kelly.
Supporters argue that farm families should not be forced to sell assets to qualify for student aid. Rep. Mann highlighted that net farm income has declined by nearly 25% since 2022, making it difficult for families to manage rising costs. Rep. Panetta emphasized the need to restore exemptions to ensure fair access to higher education.
With growing bipartisan support, this legislation seeks to protect family farms and small businesses while ensuring students from these backgrounds have equal opportunities for financial aid.
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Categories: National