Family Farm and Small Business Exemption Act

HR 1131 exempts certain family farms and small businesses from being counted as assets when calculating financial need for federal student aid under the Higher Education Act. Specifically, it amends the law to exclude the net value of a family farm where the family resides and small businesses (with ≤100 employees) owned by the family from need analysis calculations. This change directly affects students from qualifying family farm or small business households when applying for federal financial aid. The exemption applies to need analysis conducted for award years beginning after the bill's enactment date. The bill modifies Section 480(f)(2) of the Higher Education Act of 1965 to implement this policy change.