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H.R. 1131: Family Farm and Small Business Exemption Act

This bill, titled the Family Farm and Small Business Exemption Act, aims to revise how family farms and small businesses are classified when assessing financial aid eligibility under the Higher Education Act of 1965. The key provisions of the bill include:

Exemption for Family Farms and Small Businesses

The bill proposes to amend the current legislation related to the definition of assets that are considered during the financial need analysis for college students. Specifically, it seeks to:

Remove the inclusion of the "net value" of certain assets when calculating a family's financial situation for education funding.
Define explicitly which assets are exempt by including:
- Family farms: Farms where the family resides will be considered exempt from being included in the family's asset calculation.
- Small businesses: Small businesses owned and controlled by a family, with no more than 100 full-time or full-time equivalent employees, will also be exempt from asset consideration.

Effective Date

The changes proposed in the bill would apply to financial need analyses for award years starting from the date the bill is enacted. This means that once passed, the provisions of this bill would influence how students from qualifying families and businesses are assessed for federal financial aid going forward.

Conclusion of Key Points

This legislation is essentially designed to support family-run agricultural operations and small businesses by excluding their value from asset assessments used to determine eligibility for federal education assistance. It reflects a legislative effort to acknowledge and support the financial realities faced by families involved in farming and small business ownership.