S. 469Senate119th Congress (2025-2027)In Committee

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.

AI-Generated Summary

Updated November 24, 2025 at 2:59 AM UTC

The Family Farm and Small Business Exemption Act restores a previous exemption so that family‑owned farms and small businesses are not counted as assets when determining a student’s eligibility for federal financial aid under Title IV of the Higher Education Act. By removing these assets from the calculation, the bill aims to make aid eligibility easier for students whose families run farms or small businesses. The exemption takes effect for any need‑analysis performed after the law is enacted.

Key Provisions

Amends the definition of assets used in Title IV financial‑aid need analysis to exclude (A) a family farm where the family lives, and (B) a small business owned and controlled by the family that has 100 or fewer full‑time (or equivalent) employees.
The change applies to need‑analysis calculations for award years that begin on or after the law’s enactment.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

February 6, 2025

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SenateIntro Referral

Introduced in Senate

February 6, 2025

SenateIntro Referral

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Health, Education, Labor, and Pensions Committee

February 6, 2025

Bill Text

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Introduced in SenateIssued February 6, 2025

119th CONGRESS

1st Session

S. 469

IN THE SENATE OF THE UNITED STATES

February 6 (legislative day, February 5), 2025

Ms. Ernst (for herself, Mr. Bennet, Mr. Grassley, Mr. Marshall, Mr. Justice, Mr. Moran, Mr. Hoeven, Mr. Rounds, Mr. Boozman, and Mr. Tillis) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

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.

Short title

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

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(f)(2)) 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.