House Bill 373 authorizes constituent institutions of the University of North Carolina to offer discretionary tuition discounts to two new categories of students. First, schools may reduce tuition for qualifying military students—North Carolina residents who receive federal military tuition assistance or tuition assistance through the North Carolina National Guard—by up to the amount needed to cover the gap between the assistance received and the tuition charged. Second, schools may discount tuition for students enrolled in an employer-sponsored financial support program that has been approved by the UNC Board of Governors, again up to the difference between the employer’s support and the tuition due.
The bill also requires annual reporting by the UNC Board of Governors to legislative oversight and fiscal staff on the number of students receiving these discounts and the financial impact on each constituent institution. The act takes effect when it becomes law and applies beginning with the 2025-2026 academic year.
Impact
The bill amends G.S. 116-143 to create express statutory authority for UNC constituent institutions to provide tuition discounts in circumstances that previously would have been barred by the general prohibition on tuition waivers or reduced rates. It does not mandate discounts, but permits institutions to adopt them at their discretion under Board of Governors regulations. The measure affects UNC campuses, qualifying military students, students in approved employer-sponsored financial support programs, and state oversight entities that will receive annual fiscal and enrollment reports.
Sentiment
The available voting history suggests broad bipartisan support and little opposition. The House passed the bill overwhelmingly on second reading, 112-1, and the Senate later passed it unanimously, 45-0. The absence of committee transcript material limits direct insight into debate, but the vote totals indicate the bill was generally viewed favorably as a targeted higher-education affordability measure for military-connected and workforce-oriented students.
Contention
The main policy issue is the scope of tuition discount authority and the potential fiscal effect on UNC institutions. Because the discounts are discretionary and may be used to close gaps between outside assistance and tuition, supporters likely view the bill as a way to improve access and reduce out-of-pocket costs for military students and employees in employer-supported programs. Any concern would center on lost tuition revenue, administrative implementation, and whether approved employer-sponsored programs should be subject to Board of Governors oversight, but the recorded votes show no significant organized opposition.