H.R.1131 - Family Farm and Small Business Exemption Act (119th Congress)
Summary
H.R. 1131, the Family Farm and Small Business Exemption Act, aims to amend the Higher Education Act of 1965 by restoring the exemption of family farms and small businesses from being considered as assets when determining financial aid eligibility. This bill specifically targets Section 480(f)(2) of the Act, seeking to exclude family farms where the family resides and small businesses with 100 or fewer employees owned and controlled by the family from asset calculations. The changes would apply to need analysis for award years beginning after the enactment of the Act.
Expected Effects
The likely effect of this bill is to increase the number of students from family farm and small business backgrounds who are eligible for financial aid. This could lead to increased access to higher education for these students. It may also reduce the financial burden on families who own and operate farms or small businesses.
Potential Benefits
- Increased Access to Higher Education: More students from family farm and small business backgrounds may qualify for financial aid.
- Reduced Financial Burden: Families won't have to liquidate assets (farms/businesses) to afford education.
- Support for Family Farms and Small Businesses: Recognizes the unique challenges faced by these entities.
- Potential Economic Boost: Educated workforce returning to rural areas and small businesses.
- Fairer Assessment of Need: Provides a more accurate picture of a family's ability to pay for college.
Potential Disadvantages
- Potential for Abuse: Could be exploited by individuals misrepresenting their assets.
- Reduced Aid for Others: Increased aid for some may mean less aid available for others.
- Complexity in Implementation: Defining and verifying "family farm" and "small business" can be complex.
- Unintended Consequences: May incentivize keeping businesses small to maintain eligibility.
- Limited Scope: Only impacts families seeking higher education financial aid.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the general welfare clause of the Preamble. By promoting access to education and supporting family farms and small businesses, the bill could be argued to promote the general welfare of the United States. The bill does not appear to infringe upon any specific rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).