Family Farm and Small Business Exemption Act

Family Farm and Small Business Exemption Act

This bill restores an exemption for certain family farms and small businesses under the Free Application for Federal Student Aid (FAFSA). The bill applies to the net worth of (1) a family farm on which the family resides, or (2) a small business with not more than 100 full-time or full-time equivalent employees that is owned and controlled by the family.

Prior to recent changes made to FAFSA, the net worth of these family farms and small businesses were excluded as assets when calculating a student's financial need to determine federal student aid eligibility. Beginning with the 2024-2025 academic year, the net worth of these farms and businesses will be treated as an asset and therefore included in the calculation. This bill restores the exemption to exclude such net worth from the calculation.

Bill 118 HR 1250, also known as the Family Farm and Small Business Exemption Act, is a piece of legislation currently being considered by the US Congress. The main purpose of this bill is to provide exemptions for family farms and small businesses from certain regulations and requirements that may be burdensome for them.

The bill aims to support and protect family farms and small businesses by reducing regulatory barriers that could hinder their operations. It seeks to provide these entities with relief from certain federal regulations that may be overly burdensome or costly for them to comply with.

Specifically, the Family Farm and Small Business Exemption Act would exempt family farms and small businesses from certain environmental, labor, and tax regulations that are typically applied to larger corporations. This exemption is intended to help these entities thrive and continue to contribute to the economy without being weighed down by excessive regulatory requirements. Supporters of the bill argue that family farms and small businesses play a crucial role in the US economy and should be given special consideration when it comes to regulations. They believe that by providing these exemptions, these entities will be able to operate more efficiently and effectively, ultimately benefiting the economy as a whole. Opponents of the bill, however, may argue that exempting family farms and small businesses from certain regulations could lead to potential environmental and labor abuses. They may also argue that these exemptions could create an uneven playing field, giving an unfair advantage to these entities over larger corporations. Overall, the Family Farm and Small Business Exemption Act is a piece of legislation aimed at supporting and protecting family farms and small businesses by providing them with exemptions from certain federal regulations. It is currently being debated in Congress, and its ultimate fate will depend on the outcome of these discussions.