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CPE asks legislature to create $30M-per-year trust to reimburse universities for tuition waivers
Summary
CPE proposed a new trust fund that would reimburse institutions up to an estimated $31.5M in foregone tuition revenue from statutorily required waivers; CPE said recipients would likely be required to complete FAFSA and that the proposal is a policy choice affecting vulnerable students.
The Council on Postsecondary Education asked the interim Budget Review Subcommittee on Education to authorize a new trust fund that would reimburse public postsecondary institutions for statutorily required tuition discounts and waivers.
Bill Payne said CPE recommends the General Assembly establish a trust fund with $30 million appropriated each year of the 2026–28 biennium to support a tuition‑waiver reimbursement program. "The statutorily required tuition discounts and waivers result in approximately $30,000,000 of foregone revenue annually at our public post secondary institutions," Payne said, citing CPE data that totals nearly $31.5 million in FY 2023–24 by waiver category and institution.
Under the proposed program, CPE would administer reimbursement and work with campus officials to develop eligibility rules. Payne said the administration would likely require waiver recipients to complete the Free Application for Federal Student Aid (FAFSA) and that reimbursements would be based on credit hours completed by eligible recipients.
Representative Tipton noted that requiring FAFSA or configuring waivers as last‑dollar assistance could reduce the program’s cost to institutions, and Payne estimated that such changes could roughly halve the waiver cost. CPE emphasized these are policy decisions that affect vulnerable populations such as foster youth and older adults.
The subcommittee did not take action on the trust fund request; members asked CPE to provide additional details on administration and cost impacts.
