Family Farm and Small Business Exemption Act

The Family Farm and Small Business Exemption Act (S 1237) would amend the Higher Education Act of 1965 to exclude specific family-owned assets from being counted when calculating a student's financial need for federal aid. It directly affects students from families owning a farm where they reside or a small business (with 100 or fewer full-time employees) that is family-controlled. The bill adds explicit exemptions for these assets in the financial aid formula, removing their value from asset calculations. This change would increase eligibility for need-based aid like Pell Grants for affected students without altering other aid program rules.