Family Farm and Small Business FAFSA Exemption Act
Current understanding
Introduced legislation that would restore the pre-2024–2025 FAFSA treatment of family assets by excluding the net worth of a family-resident farm and a family-owned small business with 100 or fewer full-time-equivalent employees from the federal need-analysis formula. If enacted, affected students would see lower Student Aid Index calculations and potentially higher Pell Grant and subsidized-loan eligibility; institutions would apply the reinstated exclusions when packaging federal aid. Status: introduced.
Evidence log
- 2025-02-07 — Family Farm and Small Business Exemption Act: cross-connection with pell-grant-preservation-expansion-act-2026: Both proposals affect Pell Grant eligibility calculations — the exemption bill by shrinking assessed family assets in the SAI formula, and the Pell expansion bill by raising the maximum award. (novelty: 2)