By Jon Brown, Christian Post Reporter
Monday, May 19, 2025
Grand Canyon University (GCU), a prominent Christian university based in Phoenix, Arizona, has officially been cleared of a massive $37.7 million fine imposed by the U.S. Department of Education (ED) in 2023. The fine, which was the largest ever levied by the department, accused GCU of deceptive practices related to its doctoral programs.
In a recent ruling, the ED’s Office of Hearings and Appeals issued a Joint Stipulation of Dismissal, stating that there were no findings of wrongdoing against GCU or any of its staff members, and the hefty fine was dismissed with prejudice. This development was confirmed in a press release from the university last Friday.
Founded in 1949 as a nonprofit institution affiliated with the Southern Baptist Convention, GCU transitioned to a for-profit status in 2004 during financial difficulties. Since then, it has grown into the nation’s largest Christian university by enrollment, recently graduating over 31,000 students—comprising both online and on-campus learners.
The controversy began in October 2023 when the ED accused GCU of misleading over 7,500 students by advertising doctoral programs costing between $40,000 and $49,000, while in reality, fewer than 2% of students completed their studies within that range. Additional mandatory continuation courses were said to increase the final cost by $10,000 to $12,000, claims the department argued were not adequately disclosed on the university’s website.
GCU President Brian Mueller strongly denied these allegations, emphasizing the university’s commitment to transparency and innovation in education. In a statement to The Christian Post, Mueller said, “The facts clearly show that we were wrongly accused of misleading our doctoral students. We appreciate the recognition that these accusations were without merit.”
Mueller further suggested that the unprecedented fine was part of a broader federal effort to unfairly target Christian institutions. He pointed out that the penalty was comparable to a $37 million fine imposed on Liberty University for unrelated compliance issues and highlighted the disparity when compared to much smaller fines against major public universities for serious misconduct.
The fine also led to additional challenges for GCU, including lawsuits by the Federal Trade Commission (FTC) and a financial audit from the Department of Veterans Affairs. However, the U.S. District Court of Arizona dismissed the FTC lawsuit in March, ruling that the agency lacked jurisdiction over the university.
Reports from conservative groups like the American Principles Project have noted a disproportionate number of penalties against Christian colleges despite their smaller share of the overall student population. According to their findings, Christian institutions represent fewer than 10% of U.S. students but have received about 70% of the Department of Education’s enforcement fines.
A spokesperson from the Department of Education commented on the recent developments, stating, “Unlike previous administrations, we will not persecute or prosecute colleges based on religious affiliation. Our enforcement actions will focus on protecting students and upholding the law, free from political bias.”
