Kelly co-sponsors Family Farm and Small Business Exemption Act

WASHINGTON, D.C. -- Last week, U.S. Rep. Mike Kelly (R-PA) co-sponsored the Family Farm and Small Business Exemption Act, bipartisan legislation that 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. In July 2024, provisions from the Federal Application For Student Aid (FAFSA) Simplification Act altered the federal formula for determining student aid.

The legislation in the U.S. House is led by Reps. Tracey Mann (R-KS) and Jimmy Panetta (D-CA), along with House Agriculture Committee Chairman Glenn "GT" Thompson (R-PA) and House Agriculture Committee Ranking Member Angie Craig (MN-02). The House version has 79 co-sponsors. Senators Joni Ernst (R-IA) and Michael Bennet (D-CO) introduced the legislation in the U.S. Senate.

"Farm families across Western Pennsylvania work hard every day to earn an honest living. From inflation to soaring operating costs, farm families have faced tough financial challenges in recent years. The deck should not be stacked against these young people who are looking to continue their education. This legislation evens the playing field for hardworking families and students alike," said Rep. Kelly.

“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.”