H.R. 1131House119th Congress (2025-2027)In Committee

Family Farm and Small Business Exemption Act

Introduced February 7, 2025

AI-Generated Summary

Updated November 24, 2025 at 2:51 AM UTC

The Family Farm and Small Business Exemption Act restores a carve‑out so that family farms and small, family‑owned businesses are not counted as assets when determining a student’s financial need for federal aid. By removing these assets from the calculation, the bill helps families who run farms or small businesses qualify for more need‑based assistance.

Key Provisions

  • Amends the Higher Education Act’s definition of assets to exclude (A) a family farm where the family lives, and (B) a family‑owned small business with 100 or fewer full‑time (or equivalent) employees.
  • The change applies to the need‑analysis calculations used for federal student‑aid awards under Title IV for any award year that begins after the law takes effect.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Education and Workforce.

February 7, 2025

View full timeline
HouseIntro Referral

Introduced in House

February 7, 2025

HouseIntro Referral

Referred to the House Committee on Education and Workforce.

February 7, 2025

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in HouseIssued February 7, 2025

I

119th CONGRESS

1st Session

H. R. 1131

IN THE HOUSE OF REPRESENTATIVES

February 7, 2025

Mr. Mann (for himself, Mr. Panetta, Mr. Thompson of Pennsylvania, Ms. Craig, Mr. Davis of North Carolina, Mr. Meuser, Mr. Ellzey, Ms. Hageman, Mr. Sorensen, Mr. Finstad, Mr. Fleischmann, Mr. Graves, Mr. Cline, Mrs. Hinson, Mr. Bost, Mr. Costa, Ms. Tenney, Mr. Austin Scott of Georgia, Mr. DesJarlais, Mr. Edwards, Mr. Grothman, Ms. Maloy, Ms. Tokuda, Mr. Bergman, Mr. Van Orden, Mr. Scott Franklin of Florida, Mr. Zinke, Mr. Smith of Nebraska, Mr. Schmidt, Mr. Moolenaar, Mr. Smith of Missouri, Ms. Perez, Mr. Rouzer, Mrs. Miller of Illinois, Mr. LaHood, Mr. Messmer, Mr. Fallon, Mr. Bacon, Mr. Webster of Florida, Mr. Nunn of Iowa, Mr. Fitzgerald, Mr. Newhouse, Mr. Valadao, Mr. Guest, Mr. Self, Mr. Hudson, Mr. Fong, Mr. Downing, Mrs. Miller-Meeks, Mr. Moore of Alabama, Mr. Evans of Colorado, Mr. Feenstra, Ms. McDonald Rivet, Mr. Flood, Mr. Lawler, Mr. Fitzpatrick, Ms. Scholten, Mr. Joyce of Pennsylvania, Mr. Lucas, Mr. McCaul, Mr. Kelly of Pennsylvania, Ms. Salinas, Mr. LaMalfa, Mr. Cisneros, Mr. Kelly of Mississippi, Mr. Ezell, Mr. Wittman, Mr. Deluzio, Mr. Cole, Mr. Kustoff, Mr. Baird, Mr. Jackson of Texas, Mr. LaLota, Mr. Carter of Louisiana, Mr. Collins, Mr. Balderson, Mr. Bilirakis, Mrs. Fischbach, Mr. Ciscomani, and Mr. Owens) introduced the following bill; which was referred to the Committee on Education and Workforce

A BILL

To restore the exemption of family farms and small businesses from the definition of assets under title IV of the Higher Education Act of 1965.

1.

Short title

This Act may be cited as the Family Farm and Small Business Exemption Act.

2.

Exempting family farms and small businesses from assets under the Higher Education Act of 1965

(a)

In general

Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv) is amended—

(1)

by striking net value of the and inserting the following:

net value of—

(A)

the

;

(2)

by striking the period at the end and inserting a semicolon; and

(3)

by adding at the end the following:

(B)

a family farm on which the family resides; or

(C)

a small business with not more than 100 full-time or full-time equivalent employees (or any part of such a small business) that is owned and controlled by the family.

.

(b)

Applicability

The amendments made by subsection (a) shall apply to need analysis conducted under part F of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.) for award years beginning on or after the date of the enactment of this Act.