Many current and future medical students at Johns Hopkins University found out on Monday that their tuition will soon be free.
Michael Bloomberg, the former New York mayor and business leader, has given $1bn (£780m) to cover tuition for students whose parents earn less than $300,000 a year.
Those whose parents bring in less than $175,000 will also have their living expenses paid.
The move affects around two-thirds of current and prospective medical students at Johns Hopkins, which is based in Maryland.
“As the US struggles to recover from a disturbing decline in life expectancy, our country faces a serious shortage of doctors, nurses, and public health professionals,” Mr Bloomberg, said.
“And yet, the high cost of medical, nursing, and graduate school too often bars students from enrolling.”
The latest medical school graduates from Johns Hopkins had an average student loan debt exceeding $100,000, the school said.
Mr Bloomberg’s gift, made through his philanthropic organisation, will also increase financial aid available for students in other programmes, including graduate students in public health and nursing, education, engineering and others.
The university’s president, Ron Daniels, said that “removing financial barriers to individual opportunity fuels excellence, innovation and discoveries that redound to the benefit of society”.
This is not Mr Bloomberg’s first large contribution to the university, which is also his alma mater.
In 2018, Bloomberg Philanthropies made a $1.8bn donation to remove financial barriers for undergraduate students.
His latest donation follows Kenneth Langone and his wife, Elaine’s $200m donation to the NYU Long Island School of Medicine in 2023, which made tuition free for all medical students.