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American Family FAFSA Opportunity Act of 2025
To amend the Higher Education Act of 1965 to protect opportunities for families in the Federal student aid process, and for other purposes.
Summary
This bill amends the Higher Education Act of 1965 to modify how federal student financial aid is calculated for families with multiple children in college. Under current law, when determining a family's contribution to college costs, the government divides the assessment by the number of family members enrolled at eligible institutions. The bill clarifies and adjusts this calculation to eliminate what is referred to as the "sibling penalty"—ensuring families are not penalized financially when multiple children attend college simultaneously. The changes would take effect for the 2025-2026 award year and apply to all subsequent academic years.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
Money behind the sponsor
Top reported contributors to Christopher H. Smith’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
- WINDMILL HEALTH PRODUCTS $6,600
- ZAIS GROUP, LLC $6,600
- BLUFF POINT ASSOCIATES $6,600
- HILL & COMPANY $6,600
- SAKER SHOP RITE $6,600
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Christopher H. Smith → · Outside spending →
Actions (2)
- Mar 31, 2025 Referred to the House Committee on Education and Workforce. · house
- Mar 31, 2025 Introduced in House
More bills on these subjects (8)
Other bills that carry the most legislative subjects in common with this one (topical discovery — distinct from the procedural related bills above).
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Text versions (1)
Bills are re-published as they move (Introduced → Reported → Engrossed → Enrolled …). Each stage below is a separate text; pick two to see what changed. Data from Congress.gov.
Full text
IN THE HOUSE OF REPRESENTATIVES
March 31, 2025
Mr. Smith of New Jersey introduced the following bill; which was referred to the Committee on Education and Workforce
A BILL
To amend the Higher Education Act of 1965 to protect opportunities for families in the Federal student aid process, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “American Family FAFSA Opportunity Act of 2025”.
SEC. 2. ELIMINATING THE SIBLING PENALTY.
Paragraph (3) of section 475(b) of the Higher Education Act of 1965 (20 U.S.C. 1087oo(b)(3)) is amended to read as follows:
“(3) dividing the assessment resulting under paragraph (2) by the number of the family members, excluding student’s parents, who are enrolled or accepted for enrollment, on at least a half-time basis, in a degree, certificate, or other program leading to a recognized educational credential at an institution of higher education that is an eligible institution in accordance with the provisions of section 487 during the award period for which assistance under the title is requested; except that the amount determined under this subsection shall not be less than zero.”.
SEC. 3. EFFECTIVE DATE.
The amendment made by this Act shall take effect on the date of enactment of this Act, and shall apply with respect to award year 2025- 2026 and each subsequent award year, as determined under the Higher Education Act of 1965. <all>
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