Either he was tighter with that school than you initially thought or, quite possibly, the coach of the D2 school saw somebody else show up on the considering list and put some more effort in. If that's the case you probably aren't going to win him with the war chest you have available. If they're willing to fight for the guy they're usually going to win (although I have beaten out D2 players for recruits from a D3 school, it's expensive; one time I had 2 at once and I very nearly got neither of them. Ended up with both but with less than $10 left over.) As long as he's still considering you you're in the same stratosphere. So you could consider dumping all your money into him and hoping it works out. But if there's anybody else you like available around you might consider changing course while you still can. I wouldn't try to find any middle ground, though. Either go all out or drop it.