Reports from the Department of Education indicate that the proposed $37.7 million fine against Grand Canyon University has been withdrawn. This decision marks a significant development in the largest financial penalty ever considered against a higher education institution, in case that fueled allegations of the Biden administration’s unjust treatment of Christian schools.
The department dismissed the case against the Phoenix-based private Christian institution on Friday. There were “no findings” of wrongdoing by the university, according to the Daily Caller. The case was dismissed with prejudice, effectively preventing it from being resurrected in the future.
“The facts support our contention that we were wrongly accused of misleading our Doctoral students, and we appreciate the recognition that those accusations were without merit,” University President Brian Mueller stated in a press release. “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 significance of this becomes clear when we consider that the Biden administration had notified the university in October 2023 of a hefty fine following an investigation. The university was alleged to have “substantially” misrepresented the cost of its doctoral program. That same year, the Education Department sought to challenge the school’s tax-exempt nonprofit status, despite prior IRS recognition. The university emerged victorious in a lawsuit against the department in 2024.
The American Principles Project called on Congress in April to investigate former President Joe Biden’s alleged “attacks” on Christian colleges and universities. The group contended that these institutions were being targeted at an unfair rate compared to their secular counterparts. Their argument was supported by the combined fines against Grand Canyon University and Liberty University, totalling over $51 million, a sum exceeding all other penalties assessed by the Department of Education over the past seven years.
The Department of Education has rescinded the hefty fine against Grand Canyon University. The university maintains its position of having been unjustly accused and looks forward to a cooperative future with the Department. Yet, this development raises important questions about the alleged bias against Christian higher education institutions.
