Family Farm and Small Business Exemption Act: Restores the exemption of family farms and small businesses with fewer than 100 employees from being counted on the FAFSA form.
Restore the exemption for family farms and small businesses with fewer than 100 employees in the FAFSA student aid process.
Occurrences
Family Farm and Small Business Exemption Act – introduced by Senator Ernst
Evidence
On February 6, 2025, Senator Joni Ernst introduced the Family Farm and Small Business Exemption Act (S. 469) in the Senate, with Senator James C. Justice listed as a co-sponsor. The bill aims 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.
The Family Farm and Small Business Exemption Act (S. 469) was introduced in the 119th Congress by Senator Joni Ernst and is currently in committee, meaning it has not yet been voted on by the full Senate. No action has been taken on it yet.
Starting July 1, 2026, the Small Business Exclusion will be restored. The net worth of small businesses and family farms when calculating aid eligibility will be excluded. It will also apply to the 2026-2027 award year.
Federal Student Aid says the 2026-27 FAFSA implements OBBBA changes and excludes the net worth of family-owned businesses with 100 or fewer employees, farms on which the family resides, and family-owned commercial fishing businesses from the SAI asset calculation. The agency says these changes are reflected in the 2026-27 FAFSA form.
Assessments
The promised FAFSA exemption was restored: Federal Student Aid states the 2026-27 FAFSA excludes the net worth of family-owned businesses with 100 or fewer employees and relevant family farms from the SAI asset calculation. Justice also directly supported this outcome by co-sponsoring S. 469 to restore the exemption. He was not the lead sponsor and the evidence does not show he was the principal architect of the final enacted vehicle, but the policy outcome itself was achieved while he was serving in the Senate, so this is best scored as delivered in the same federal term rather than only partial credit.
The exemption for family farms and small businesses in FAFSA calculations is set to be restored as of July 1, 2026. While initial legislative efforts by the candidate included co-sponsoring a bill to accomplish this, independent of that effort, the desired policy outcome will go into effect in the stated 'later_term.' Therefore, the promise is considered delivered, although a direct causal link to the candidate's effort is not conclusively demonstrated.