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Bill Summary · HB 373

Summary — HB 373: UNC Tuition Discounts for Certain Students

Status: Ratified as Session Law 2025-17; Signed by Governor Josh Stein on June 26, 2025. Applies beginning with the 2025–2026 academic year.

Purpose

Allow constituent institutions of the University of North Carolina (UNC) system, at their discretion, to offer limited tuition discounts to (1) certain military-affiliated students who receive military tuition assistance and (2) students enrolled in approved employer-sponsored financial support programs. The change creates a statutory exception to the general prohibition on tuition waivers or reduced rates.

Key provisions

  • Discretionary authority: Each UNC constituent institution may choose whether to offer the discounts; institutions are not required to do so.
  • Military tuition discounts:
    • Eligible students ("qualifying military students") must:
    • Be residents for tuition purposes under G.S. 116‑143.1; and
    • Receive either federal military tuition assistance or North Carolina National Guard tuition assistance under Article 15 of Chapter 127A, GS.
    • Institutions may discount tuition up to the difference between (a) the maximum military tuition assistance amount the student receives and (b) the applicable tuition rate. In other words, the discount can cover (but not exceed) the gap between a student’s military TA award and tuition.
  • Employer-sponsored discounts:
    • Applicable to students enrolled in an employer-sponsored financial support program that has been approved by the UNC Board of Governors.
    • An approved employer program is one in which an employer commits to provide financial support to offset tuition or fee costs in the student’s degree/credential program.
    • Institutions may discount tuition up to the difference between the maximum amount provided by the employer and the applicable tuition rate.
  • Reporting requirement:
    • By February 15 each year the UNC Board of Governors must report to the Joint Legislative Education Oversight Committee and the Fiscal Research Division on discounts used in the prior academic year, including:
    • Number of students receiving discounts under the military and employer provisions, and
    • The annual financial impact on each constituent institution from those discounts.

Who is affected

  • UNC constituent institutions: gain new, optional authority to set discount policies.
  • Students:
    • Resident students using federal military tuition assistance or NC National Guard TA (potential reduced out‑of‑pocket tuition).
    • Students participating in employer-sponsored tuition support programs approved by the Board.
  • UNC Board of Governors: responsible for employer‑program approvals and required reporting.
  • State budget oversight bodies: will receive annual data to assess fiscal impact.

Fiscal and policy implications

  • No dollar amounts are specified in the law. Because discounts are discretionary and limited to the gap between external aid and tuition, the total fiscal impact is uncertain and will vary by institution and uptake.
  • The required annual report is intended to provide transparency on enrollment and institutional revenue effects; lawmakers and institutions can use that data to evaluate program scope and sustainability.

Effective date and timeline

  • Becomes law on the date of the Governor’s approval (signed June 26, 2025).
  • Applies beginning with the 2025–2026 academic year.
  • Annual reporting to begin following the first academic year in which institutions grant discounts; reports are due each February 15 covering the prior academic year.

Compiled from official sources — confirm details with the bill’s official record.

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