S.469 - Family Farm and Small Business Exemption Act (119th Congress)
Summary
The Family Farm and Small Business Exemption Act aims to amend the Higher Education Act of 1965 to exempt family farms and small businesses from being considered as assets when determining financial aid eligibility. This would potentially allow more students from families owning farms or small businesses to qualify for federal financial aid. The bill specifically targets Section 480(f)(2) of the Higher Education Act, modifying the definition of assets to exclude family farms where the family resides and small businesses with 100 or fewer employees owned and controlled by the family.
Expected Effects
The primary effect of this bill, if enacted, would be to change how financial need is calculated for students whose families own and operate small businesses or farms. By excluding these assets from consideration, more students from these families could become eligible for need-based financial aid. This could increase college enrollment and reduce the financial burden on these families.
Potential Benefits
- Increased College Access: More students from farm and small business families may qualify for financial aid.
- Reduced Financial Burden: Eases the financial strain on families trying to afford higher education.
- Support for Family Farms: Helps preserve family farms by making college more accessible for their children.
- Support for Small Businesses: Similar to farms, it supports small business owners and their families.
- Potential Economic Boost: Increased enrollment could lead to a more educated workforce.
Potential Disadvantages
- Potential for Increased Costs: Increased financial aid distribution could strain federal resources.
- Fairness Concerns: Some may argue it unfairly benefits a specific group (farm and small business owners).
- Complexity in Implementation: Defining and verifying 'family farm' and 'small business' ownership could be complex.
- Potential for Abuse: Risk of individuals misrepresenting their assets to qualify for the exemption.
- Limited Scope: The impact is limited to families owning farms and small businesses, potentially overlooking other deserving students.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the implied power of Congress to legislate in areas related to education and general welfare. Article I, Section 8 grants Congress the power to provide for the general welfare of the United States. Providing access to higher education can be argued as promoting the general welfare. The bill does not appear to infringe upon any specific constitutional rights or protections.
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).