U Kentucky shifting away from merit aid

My son (OOS, upper midwest) applied to Kentucky as a “backup” for 2018 well after the competitive scholarship deadline (unfortunately). We had no idea if he would get ANY merit aid, but were quite pleased with a supplemented Bluegrass scholarship that brings OOS tuition to near instate levels. He applied with a 3.6 GPA/33 ACT, a rigorous course, and good ECs. He enjoyed his visit to the campus and UK is now very much in the mix. On-campus housing/dining, student union, etc were simply outstanding.

I think Kentucky is a hidden gem for kids from the upper midwest that want to attend a flagship within driving distance in a nice city (with much improved climate). They need to walk a the merit tightrope, but I think they have done well, at least by us. Still astounded that Alabama is basically waiving tuition for OOS with strong, but (lets be honest) not exceptional, stats. Seems like an unsustainable race to the bottom to me.