New Bill Supports Student Aid for Farm Families

Legislation Aims to Exempt Farm Assets in Student Aid

Recently U.S. Representative Mike Kelly endorsed the Family Farm and Small Business Exemption Act. This bipartisan effort, led in the House by Representatives Tracey Mann and Jimmy Panetta, aims to amend the FAFSA to favor students from agricultural and small business families by exempting the value of essential assets from net worth calculations for student aid.

Historically, farm families have been disadvantaged by student aid assessments that did not account for the nature of their assets—often substantial in value but not in liquidity. The recent changes by the FAFSA Simplification Act in July 2024 have prompted this legislative response to ensure fair treatment.

Supporting this measure, Rep. Kelly highlighted the ongoing financial challenges faced by farm families in Western Pennsylvania, from inflation to high operating costs, which jeopardize their children's educational opportunities. He noted, "The deck should not be stacked against these young people who are looking to continue their education."

The legislation has gathered significant support in both the House and Senate, reflecting a broad recognition of the need to support the educational aspirations of students from farming and small business backgrounds.

Senator Joni Ernst, co-sponsoring the bill in the Senate, passionately stated, "No one should have to sell off the farm – or their small business – to afford college." This statement underscores the bill's intent to make higher education more accessible without forcing families to liquidate the very assets that sustain their livelihoods.

The bill's supporters argue that it not only aids individual families but also serves broader economic interests by supporting the sectors critical to food, fuel, and fiber production.

The Family Farm and Small Business Exemption Act represents a crucial step towards educational equity, ensuring that students from asset-rich but cash-poor backgrounds have a fair chance at pursuing higher education without undue financial hardship.