A coalition of nearly 80 members of the U.S. House of Representatives introduced legislation on Feb. 7 that would restore FAFSA exemptions for families of farmers and small business owners.
The legislation seeks to restore decades-old standards that exempt the assets of farms and small businesses as part of a family’s new worth when applying for federal student aid. Lawmakers said the Family Farm and Small Business Exemption Act, H.R. 1131, would correct the July 2024 provisions that changed the federal formula for determining net worth on the Federal Application For Student Aid (FAFSA).
“Across Kansas’ Big First District and the country, net farm income has decreased by nearly 25% since 2022,” said U.S. Rep. Tracey Mann (R-KS). “Between navigating record-levels of inflation and skyrocketing input costs, our family farmers, ranchers, agricultural producers, and small business owners are doing their best to make an honest living. When young people from these families are applying for higher education financial aid, the assets tied up in the family farm or the small business should not count against them.”
Mann joined U.S. Rep. Jimmy Panetta (D-CA), Angie Craig (D-MN), G.T. Thompson (R-PA), and 74 of their colleagues in introducing the legislation. Additionally, companion legislation was introduced by U.S. Sens. Joni Ernst (R-IA) and Michael Bennet (D-CO) in the Senate.
“No one should have to sell off the farm – or their small business – to afford college. As a farm kid myself, I know the enormous impacts grants and financial aid have on rural students’ decision to go to college,” Ernst said.
The legislation is supported by a number of state and national organizations including the State Higher Education Executive Officers Association, Kansas Farm Bureau, National Association of Independent Colleges and Universities, Association of Public & Land-Grant Universities, Iowa Association of Financial Aid Administrators, Kansas Independent College Association, Pennsylvania Association of Financial Aid Administrators, National Milk Producers Federation, United Egg Producers, Iowa Farm Bureau, American Farm Bureau, Land O’Lakes, Iowa Turkey Federation, and Farm Credit Council.
“I applaud and support the legislation introduced by Rep. Tracey Mann that would continue the longstanding practice of excluding farm and small business assets in the calculation used as part of the Free Application for Federal Student Aid,” Joe Newland, Kansas Farm Bureau President, said. “Growing food is a capital-intensive, low-margin business, and farmers and ranchers should never be asked to borrow against their livelihood to pay for their child’s education.”