House Bill 373 / SL 2025-17
HB 373 amends North Carolina law governing tuition and fee waivers at constituent institutions of The University of North Carolina to authorize additional, limited tuition discounts. The bill preserves the general prohibition on tuition waivers or reduced rates unless expressly authorized by statute, while expanding the Board of Governors’ discretion to offer discounted tuition in two new situations: for qualifying military students and for students enrolled in approved employer-sponsored financial support programs.
For military students, the bill allows UNC institutions to discount tuition by up to the amount needed to close the gap between the student’s military tuition assistance and the applicable tuition, including federal military tuition assistance and assistance for North Carolina National Guard members. For employer-sponsored programs, institutions may discount tuition by up to the difference between the employer’s committed support and the tuition owed, so long as the program is approved by the Board of Governors. The bill also continues existing authority for certain UNC personnel, including faculty, staff, and campus law enforcement officers, to enroll in courses free of charge under specified conditions.
The bill requires the UNC Board of Governors to report annually to legislative oversight and fiscal staff on the number of students receiving the new discounts and the financial impact on each constituent institution. It takes effect when it becomes law and applies beginning with the 2025-2026 academic year. In practical terms, the measure affects tuition-setting authority, institutional finances, and the administration of student aid at UNC constituent institutions.
The overall sentiment around the bill appears favorable and noncontroversial, as reflected by its enactment into Session Law 2025-17 without any recorded committee transcript opposition or recorded votes in the provided materials. The bill’s structure suggests broad support for expanding access and flexibility for military-connected students and workers using employer-based education benefits, while still preserving institutional discretion and fiscal oversight.
Any likely points of contention would center on the financial impact to constituent institutions, the scope of Board of Governors discretion, and whether discounted tuition could create uneven treatment among students. However, the reporting requirement and the fact that discounts are capped at the amount of outside assistance appear designed to address those concerns by limiting institutional exposure and preserving transparency.
HB 373 changes G.S. 116-143 to create explicit statutory authority for UNC constituent institutions to offer tuition discounts to qualifying military students and to students in approved employer-sponsored financial support programs. It also adds annual reporting obligations to the UNC Board of Governors regarding participation and fiscal effects, thereby affecting tuition administration, institutional budgeting, and legislative oversight of higher education finance.
The available record indicates a positive and largely uncontroversial reception. The bill was ratified and signed into law, and there are no committee transcripts or recorded votes showing opposition in the provided materials. The measure appears to have been viewed as a targeted expansion of tuition flexibility for military-affiliated students and workforce-development programs.
The main potential concerns are fiscal and administrative: UNC institutions must manage the revenue impact of discounted tuition, and the Board of Governors must approve employer-sponsored programs and report on their use. Any debate would likely focus on whether the discounts could reduce tuition revenue, whether the Board should have this level of discretion, and whether the policy creates preferential treatment for certain student groups. The reporting requirement and tuition caps suggest these concerns were addressed through oversight and limits on the discounts.