Overview

Title

To restore the exemption of family farms and small businesses from the definition of assets under title IV of the Higher Education Act of 1965.

ELI5 AI

S. 469 is a rule that says if a family owns a farm where they live or a small business with 100 or fewer workers, those things don't count when deciding how much money their kids can get for college help. This means owning a farm or small business won't make it harder to get school money.

Summary AI

S. 469 aims to change how family farms and small businesses are counted as assets when determining financial aid for higher education under the Higher Education Act of 1965. The bill proposes that family farms where the family lives and small businesses with 100 or fewer employees should not be considered as part of the family's assets in financial aid calculations. This change would apply to financial aid assessments for school years starting after the bill becomes law.

Published

2025-02-06
Congress: 119
Session: 1
Chamber: SENATE
Status: Introduced in Senate
Date: 2025-02-06
Package ID: BILLS-119s469is

Keywords AI

family farm exemption small business exemption higher education act of 1965 financial aid student aid asset calculation small business definition family residence requirement equitable education funding congress bill s. 469

Sources

Bill Statistics

Size

Sections:
2
Words:
417
Pages:
2
Sentences:
13

Language

Nouns: 133
Verbs: 25
Adjectives: 13
Adverbs: 1
Numbers: 17
Entities: 39

Complexity

Average Token Length:
3.66
Average Sentence Length:
32.08
Token Entropy:
4.55
Readability (ARI):
15.04

AnalysisAI

General Summary of the Bill

The proposed legislation, titled the "Family Farm and Small Business Exemption Act," aims to modify the Higher Education Act of 1965. This bill seeks to exclude family farms and small businesses from the calculation of assets when determining financial need for federal student aid. Specifically, it allows family-owned farms on which the family resides, and small businesses with no more than 100 employees, to be exempted from the traditional asset calculations in financial aid assessments.

Significant Issues

One prominent issue with this bill is its definition of a "small business." By setting the employee limit at 100, it narrowly excludes businesses that have slightly more employees. This cutoff could create confusion and complications, especially for those businesses right on the cusp of being included or excluded based on their workforce size.

Additionally, the bill lacks a clear definition of what constitutes a family, especially concerning the ownership and control of the farms and businesses. This ambiguity could lead to varying interpretations and possible exploitation of the exemption.

Another critical point lies in the provision that specifies a family farm "on which the family resides." The stipulation may not consider families that reside on the farm part-time or own multiple properties, raising questions about who qualifies under this bill.

The bill might also create an imbalance in favor of families with farms or small businesses, potentially disadvantaging those without such assets. This shift could challenge the intent of fairness in access to educational funding, by potentially redistributing financial aid eligibility in a manner not aligned with general equity principles.

Impact on the Public and Stakeholders

Broadly, the bill aims to aid students from farming and small business backgrounds by potentially increasing their financial aid eligibility. This change would be beneficial in supporting these families, who often have asset structures that might otherwise limit their access to aid.

For families owning farms or small businesses, the exemption can provide financial relief and enable better educational opportunities for their children. However, for those who do not fall into these categories, there may be concerns about fairness, as the provision might indirectly reduce aid availability for students from non-exempt asset backgrounds.

Furthermore, the complexity of the bill’s language and legal terminology could impact transparency, making it difficult for everyday citizens to fully understand and engage with the law. The general public might struggle to track how such legislative changes affect them directly or indirectly.

Conclusion

Overall, while the "Family Farm and Small Business Exemption Act" holds potential benefits for families operating farms and small businesses, it brings to light notable issues of equity, accessibility, and clarity. The outcomes of such a legislative change would largely depend on careful implementation and oversight to ensure it harmonizes with the broader goals of equitable educational support.

Issues

  • The definition of 'small business' as having 'not more than 100 full-time or full-time equivalent employees' may exclude businesses that are only slightly larger, potentially leading to ambiguity in eligibility that could impact many business owners (Section 2).

  • There is no clear definition of what constitutes a family in regard to 'family farm' and 'small business', which might lead to interpretation issues and potential misuse of the provisions (Section 2).

  • The provision stating a family farm must be 'on which the family resides' could create confusion if the family resides only part-time or if the family owns multiple properties, possibly excluding legitimate beneficiaries (Section 2).

  • The exemption could potentially favor families who own farms or small businesses, thereby possibly disadvantaging other families who do not have these types of assets, raising fairness and equity concerns (Section 2).

  • The impact of the exemption on financial aid determinations could result in advantages or disadvantages for some students, which might not align with the original intent of equitable access to education funding (Section 2).

  • The language used in the bill, particularly the legal references such as 'Section 480(f)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(f)(2))', is complex and may not be easily understood by the general public, potentially affecting transparency and public understanding (Section 2).

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of the Act indicates its short title, which is the “Family Farm and Small Business Exemption Act”.

2. Exempting family farms and small businesses from assets under the Higher Education Act of 1965 Read Opens in new tab

Summary AI

The amendment to the Higher Education Act of 1965 allows family farms and small businesses with no more than 100 employees, owned and controlled by the family, to be excluded from being considered as assets when determining financial need for student aid, starting from the year this amendment is enacted.