La. Rep. Carter Signs on as Cosponsor of Bicameral Effort to Restore FAFSA Exemptions for Farm and Small Business Families

U.S. Representatives Tracey Mann (KS-01) and Jimmy Panetta (CA-19), alongside House Agriculture Committee Chairman G.T. Thompson (PA-15), and House Agriculture Committee Ranking Member Angie Craig (MN-02) led 74 of their colleagues in reintroducing the bipartisan Family Farm and Small Business Exemption Act. In July 2024, provisions from the Federal Application For Student Aid (FAFSA) Simplification Act altered the federal formula for determining student aid. The Family Farm and Small Business Exemption Act seeks to restore the decades-old standard that exempts the value of assets found on family farms and small business from being assessed as part of a family’s net worth. Senator Joni Ernst (R-IA) and Michael Bennet (D-CO) introduced the legislation in the U.S. Senate.

“Across Kansas’ Big First District and the country, net farm income has decreased by nearly 25% since 2022,” said Rep. Mann. “Between navigating record-levels of inflation and skyrocketing input costs, our family farmers, ranchers, agricultural producers, and small business owners are doing their best to make an honest living. When young people from these families are applying for higher education financial aid, the assets tied up in the family farm or the small business should not count against them. Congress should work to make life easier, not harder, for these dedicated families and students. My bill evens the playing field for these students and families, while protecting the American dream for every student regardless of their parents’ career ventures.”

"Students from family farms and small businesses should not be unfairly burdened when applying for federal student aid,” said Rep. Panetta. “The Family Farm and Small Business Exemption Act would restore long-standing exemptions to ensure that these students aren’t penalized for assets that don’t reflect their actual financial resources. I’m proud to reintroduce this bipartisan bill to support hardworking families, uphold fairness in financial aid, and protect access to higher education for the next generation of family farmers and small business owners."

“Farming tends to be an asset-rich but cash-poor industry, and America's hardworking farm families should not be unfairly burdened when pursuing higher education," said Rep. Thompson. "We need to ensure that family farms and small business owners are no longer penalized for owning the tools required to feed, fuel, and clothe America and the world."

“If the kids of farmers and small business owners decide higher education is the right step for them, we should be making it easier for their families to send them to college, not harder,” said Rep. Craig. “I'm proud to have worked on this bipartisan bill to cut red tape and make sure farm families aren’t unfairly penalized when applying for federal student aid. I'll keep working across the aisle to increase educational opportunities for hardworking Minnesotans and ensure the next generation of farmers and small business owners have a fair shot at a college degree.”

“No one should have to sell off the farm – or their small business – to afford college. As a farm kid myself, I know the enormous impacts grants and financial aid have on rural students’ decision to go to college,” said Sen. Ernst. “I’m fighting for Iowa families, so unfair policies don’t hold them back from investing in their child’s education.”

“From Colorado to Iowa, federal financial aid helps ensure more students can afford college – including students from farm families, whose businesses are vital to our communities and economies,” said Sen. Bennet. “Our bipartisan bill will help ensure these students receive the financial aid they need.”

Joining Reps. Mann, Panetta, Thompson, and Craig in introducing the bill are Don Davis (NC-01), Dan Meuser (PA-09), Jake Ellzey (TX-06), Harriet Hageman (WY-AL), Eric Sorenson (IL-17), Brad Finstad (MN-01), Chuck Fleischman (TN-03), Sam Graves (MO-06), Ben Cline (VA-06), Ashley Hinson (IA-02), Mike Bost (IL-02), Jim Costa (CA-21), Claudia Tenney (NY-24), Austin Scott (GA-08), Scott DesJarlais (TN-04), Chuck Edwards (NC-11), Glenn Grothman (WI-06), Celeste Maloy (UT-02), Jill Tokuda (HI-02), Jack Bergman (MI-01), Derrick Van Orden (WI-03), Scott Franklin (FL-18), Ryan Zinke (MT-01), Adrian Smith (NE-03), Derek Schmidt (KS-02), John Moolenaar (MI-02), Jason Smith (MO-08), Marie Gluesenkamp Perez (WA-03), David Rouzer (NC-07), Mary Miller (IL-15), Darin LaHood (IL-16), Mark Messmer (IN-08), Pat Fallon (TX-04), Don Bacon (NE-02), Daniel Webster (FL-11), Zach Nunn (IA-03), Scott Fitzgerald (WI-05), Dan Newhouse (WA-04), David Valadao (CA-22), Michael Guest (MS-03), Keith Self (TX-03), Richard Hudson (NC-09), Vince Fong (CA-20), Troy Downing (MT-02), Mariannette Miller-Meeks (IA-02), Barry Moore (AL-01), Gabe Evans (CO-08), Randy Feenstra (IA-04), Kristen McDonald Rivet (MI-08), Mike Flood (NE-01), Mike Lawler (NY-17), Brian Fitzpatrick (PA-08), Hillary Scholten (MI-03), John Joyce (PA 13), Frank Lucas (OK-03), Michael McCaul (TX-10), Mike Kelly (PA-16), Andrea Salinas (OR-06), Doug LaMalfa (CA-01), Gis Cisneros (CA-31), Trent Kelly (MS-01), Mike Ezell (MS-04), Rob Wittman (VA-01), Chris Deluzio (PA-17), Tom Cole (OK-04), David Kustoff (TN-08), James Baird (IN-04), Ronny Jackson (TX-13), Nick LaLota (NY-01), Troy Balderson (OH-12), Troy Carter (LA-02), Mike Collins (GA-02), Gus Bilirakis (FL-12), Michelle Fischbach (MN-07), and Juan Ciscomani (AZ-06).

“Students should not be penalized for their families’ small farms and businesses,” said Rep. Bergman. “The Family Farm and Small Business Exemption Act will correct an oversight which miscalculates a student’s needs as they apply for federal student aid – an oversight that disproportionately harms our rural families. I’m proud to cosponsor this much needed legislation that will lift up all American families, especially our small business owners.”

"I’m proud to cosponsor the reintroduction of the Family Farm and Small Business Exemption Act,” said Rep. Fallon. “This bill ensures that non-liquid assets—such as equipment and inventory—are not counted against students when determining financial aid eligibility. These assets are necessary for running businesses, but they shouldn't impact financial aid. By restoring this exemption, we give students from family farms and small businesses a better opportunity to pursue higher education."

“Students whose families own farms and small businesses, currently have assets such as machinery and equipment count against them as income, when those assets clearly are not available as financial resources,” said Rep. Bacon. “This legislation will open up financial resources to these students, so they don’t have to rely more heavily on loans.”

“America's farm families deserve the best, and I'm proud to cosponsor this legislation to help ensure they receive fair and accurate eligibility for student aid,” said Rep. Scott.

“Many farmers are struggling to operate, and we must support our family farms by making education more accessible,” said Rep. Davis. “We must also establish a clear pathway for the next generation of farmers, which is vital to our national security interests.”

“The best investment we can make in our future is an investment in our children and students,” said Rep. Cisneros. “All our students should have the same opportunity to pursue higher education, but under the new federal financial aid formula that will launch later this year, students from families that own small farms could see less financial aid. The Family Farms and Small Business Exemption Act corrects this oversight and ensures all students can be set up for success.”

“Family farms and small businesses are the backbone of our communities, and it’s time we stop penalizing those who’ve poured their lives into them,” said Rep. Cline. “The changes to the FAFSA formula unfairly hurt these hardworking families by counting their assets in financial aid calculations. The Family Farm and Small Business Exemption Act restores fairness, ensuring that the next generation of students from these families can access the education they deserve without being burdened by their parents' hard-earned assets.”

“Our neighbors who run small businesses and operate family farms shouldn’t have to choose between keeping their livelihoods and sending their kids to college,” said Rep. Eric Sorensen. “We must do everything we can to make sure our kids have fair access to financial aid, that’s why I’m proud to support the Family Farms and Small Business Exemption Act."

“We need to be doing more to support our small businesses and ag producers,” said Rep. Flood. “Excluding net worth assets of family farms and small business on FAFSA applications makes sense – what’s on paper, may not accurately reflect the tangible financial means that a family has at its disposal to help their kids afford college. The Family Farm and Small Business Exemption Act will enhance financial aid resources for students and families by returning reporting requirements to an already proven standard. Thank you to Congressman Mann for leading this effort in the House and to Senator Ernst for championing it in the Senate.”

“The Family Farms and Small Business Exemption Act is important to ensure that students are getting a fair assessment when evaluated for federal student aid,” said Rep. Fong. “We need to support our family farmers and small business owners as they choose to pursue higher education. Thank you to Rep. Mann for your leadership on this critical piece of legislation. I know this will not only benefit many in my community, but students throughout the nation.”

“Growing up on a family farm shouldn’t disqualify anyone from receiving financial aid to go to college,” said Rep. Graves. “Families shouldn’t be forced to sell off the farm just to pay their children’s way through school either. The Family Farm and Small Business Exemption Act restores standard exemptions that have been around for decades to ensure this is never allowed to happen again. It’s just plain common sense.”

“As mid-Michigan family farmers and small business owners sit down with their kids to apply for college financial aid, they’re disadvantaged by an unfair formula that fails to capture their family’s actual financial situation,” said Rep. McDonald Rivet. “I’m working with my Republican and Democratic colleagues to fix it and make sure the children of farmers and small business owners who want to go to college have a fair shot.”

“Over the last few years, our farmers and producers have faced significant declines in net farm income, low commodity prices, inflation, and restricted export markets,” said Rep. Feenstra. “Counting assets — like farmland and equipment that cannot be easily liquidated — against farm families when applying for FAFSA only adds fuel to the fire. I’m glad to work with House Agriculture Committee Chairman G.T. Thompson and my colleague from Kansas, Rep. Tracey Mann, to introduce legislation to exempt the value of farm and business assets and equipment — a long-standing policy. Representing the second largest ag-producing district in the nation, I’ll always be a strong voice for our farmers, producers, and their families in Congress.”

“Having been raised on a ranch, I know firsthand that our land, equipment, and livelihoods are not liquid assets to be sold off for tuition,” said Rep. Hageman. “Owning a family farm or small business should never have to count against a student's opportunity for federal financial aid. That's why I'm proud to cosponsor this legislation, which restores the critical exemption of these assets from student aid calculations and ensures students from hardworking families have fair access to higher education without unnecessary penalties.”

"Students from farm and small business families should not be penalized when applying for student aid," said Rep. Meuser. "These families work hard to keep their operations running, yet their non-liquid assets—like farmland and equipment—are unfairly counted against them in the aid process. This bill corrects that inequity, ensuring that students from agricultural and small business backgrounds have the same opportunities to pursue higher education without being burdened by an unfair system."

“Kansas’ farmers and small business owners have been hit hard by years of rising costs and overregulation,” said Rep. Schmidt. “Owning and operating a farm or small business should never hinder a family’s ability to support their children’s aspirations. I’m proud to join my colleagues on this commonsense solution to increase educational opportunities for America’s producers.”

“Under current law, many family farmers are unfairly punished through reduced financial aid for their college-age kids,” said Rep. Hinson. “This jeopardizes educational opportunities for students in rural America. I am cosponsoring the Family Farm and Small Business Exemption Act to ensure Iowans can afford higher education and invest in their children’s future without putting their livelihoods at risk.”

“Family farms are the backbone of Pennsylvania’s agricultural community and I support this commonsense step to ensure that the children of our farmers are not at a disadvantage if they wish to pursue higher education and a career in farming,” said Congressman John Joyce, M.D.

“Farmers and small businesses are the backbone and lifeblood of our communities, yet with the high cost of doing business in Hawaiʻi and across the country, they struggle to put food on their family tables and keep their businesses afloat,” said Rep. Tokuda (HI-02). “For all they do to support our communities, college-bound students who come from these families deserve the same financial aid opportunities as others. That’s why I am proud to cosponsor this legislation to help the children of these hard-working Americans obtain equal access to financial aid, ensuring our students more opportunities toward a brighter future.”

The Family Farm and Small Business Exemption Act is supported by the State Higher Education Executive Officers Association, Kansas Farm Bureau, National Association of Independent Colleges and Universities, Association of Public & Land-Grant Universities, SchoolHouse Connection, National Association of State Student Grant and Aid Programs, American Council on Education, Iowa Student Loan, Iowa College Access Network, University of Iowa, Iowa State University, University of Northern Iowa, Community Colleges for Iowa, Southwestern Community College, Dordt University, Iowa Association of Financial Aid Administrators, Drake University, Kansas Independent College Association, Kansas Wesleyan University, Kansas State University, Pennsylvania Association of Financial Aid Administrators, Washburn University, National Milk Producers Federation, United Egg Producers, Iowa Farm Bureau, American Farm Bureau, Land O’Lakes, Iowa Turkey Federation, and Farm Credit Council.

“I applaud and support the legislation introduced by Rep. Tracey Mann that would continue the longstanding practice of excluding farm and small business assets in the calculation used as part of the Free Application for Federal Student Aid,” said Joe Newland, Kansas Farm Bureau President. “Growing food is a capital-intensive, low-margin business, and farmers and ranchers should never be asked to borrow against their livelihood to pay for their child’s education.”

“At a time when our country’s farmers and ranchers are facing monumental challenges, we should be making it easier, not harder for their children to afford a college education,” said Ryan Yates, Managing Director, Government Affairs, American Farm Bureau Federation. “We know that farmers’ assets are tied up in the value of their land, livestock and equipment, yet their kids may not qualify for federal financial student aid. AFBF commends Chairman Thompson, Ranking Member Angie Craig, Representatives Mann, and Representative Panetta for their work to find a solution to the problems created by the asset calculation changes in the FAFSA Simplification Act.”