I was surprised as well. After my admission, I participated in the Admitted Student event, met with administrators and professors, and so on. There were a few subtle hints that they wanted me (where they assigned me to sit, alums approaching me, etc).
But when it came down to it, they wouldn't offer anything more than half-tuition. Really don't get it. IMHO, $40,000 should be the sticker price for the program, not the "half tuition" price. Even $40k in debt is a tough sell when you're entering public service.
I mean, the price is arbitrary anyway. What's the marginal cost of adding one additional student?
Oh well. This is just the universe telling me USC isn't the right place for me--and that it didn't really want me.