U.S. Department of Education Drops $37.7M Fine Against Grand Canyon University

PHOENIX — The U.S. Department of Education has rescinded a $37.7 million fine against Grand Canyon University, marking a significant victory for the private Christian institution. The fine, announced in October 2023, was the largest ever levied by the department against a university, stemming from allegations that GCU misled students about the costs of its doctoral programs.

In a Joint Stipulation of Dismissal issued by the Education Department's Office of Hearings and Appeals, the case was dismissed with prejudice, meaning it cannot be refiled. The department confirmed it found no evidence that GCU violated Title IV requirements or substantially misrepresented the cost of its doctoral programs, as alleged under the Biden administration.

"The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students, and we appreciate the recognition that those accusations were without merit," GCU President Brian Mueller said in a statement. "GCU is a leader in innovation, transparency and best practices in higher education and we look forward to working cooperatively with the Department in the future – just as we have with all regulatory agencies."

The fine was initially imposed after claims that GCU misrepresented doctoral program costs, allegedly causing students to pay over $10,000 more than advertised. GCU appealed the decision in November 2023, with Mueller accusing the federal government of targeting the university, one of the nation's largest Christian institutions. He noted a similar fine against Liberty University, suggesting a pattern of scrutiny toward faith-based schools.

"It's interesting, isn't it, that the two largest Christian universities in the country, this one and Liberty University, are both being fined almost the identical amount at almost the identical time?" Mueller said at the time.

The dismissal ends a yearslong legal battle for GCU, which has faced additional scrutiny from federal agencies. A separate lawsuit by the Federal Trade Commission, alleging similar deceptive practices, remains ongoing, though some claims were recently dismissed by an Arizona district court.

GCU, founded in 1949, has grown to serve over 123,000 students, emphasizing affordability with tuition frozen for 17 years. The university hailed the Education Department's decision as vindication, reinforcing its commitment to transparency and innovation.

Despite the victory, GCU continues to navigate challenges, including a recent court win in its fight for federal nonprofit status recognition. The 9th U.S. Circuit Court of Appeals ruled in November 2024 that the Education Department applied incorrect legal standards in denying GCU's nonprofit status, remanding the case for further review.

Mueller expressed optimism about future collaboration with regulatory bodies, positioning GCU as a leader in higher education. The university, which graduated a record 31,104 students in the 2024-25 academic year, remains focused on addressing workforce shortages in education, healthcare, and technology.

The Education Department's decision to drop the fine has been celebrated by GCU supporters, with posts on X calling it a triumph over bureaucratic overreach. The ruling clears a significant hurdle for the university as it continues to expand its academic offerings and campus infrastructure.