In a dramatic reversal, the U.S. Department of Education has canceled a $37.7 million penalty previously imposed on Grand Canyon University, clearing the institution of any misconduct.
Breitbart News reported that the nation's largest Christian university was formally cleared by the Education Department after a case accusing it of misleading students about program costs was dismissed with prejudice.
The fine — the largest ever proposed against a university — was levied in 2023 during the Biden administration following an investigation into whether GCU had misled students about the cost of its doctoral programs. At the time, federal officials claimed that more than 7,500 students had been affected. The department accused the university of failing to adequately disclose the requirements and total expenses of the program, charges GCU vehemently denied.
GCU’s leadership pushed back against the allegations from the start, calling them unfounded and asserting that the university had always provided full cost information. In response to the fine, the university stated it would take all necessary measures to challenge what it described as false claims. The administration insisted its communication with students adhered to federal standards and transparency rules.
On Friday, the Department of Education’s Office of Hearings and Appeals issued a formal Joint Stipulation of Dismissal, closing the case with prejudice. This legal designation means the case cannot be reopened or filed again in the future. The decision was first reported on Monday by the Daily Caller.
The dismissal explicitly stated that there were no findings of wrongdoing against the university or any of its employees, agents, or representatives. It also confirmed that no fines would be imposed as part of the case outcome. The Education Department found that GCU had not violated any Title IV federal student aid regulations, the legal foundation for the prior enforcement action.
Brian Mueller, president of Grand Canyon University, welcomed the decision and underscored the university's commitment to ethical practices. “The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students,” Mueller told Fox News. “We appreciate the recognition that those accusations were without merit.”
The initial fine became a point of contention among groups who believed the Biden administration was unfairly scrutinizing religiously affiliated institutions. Critics argued that faith-based colleges, like GCU, were being held to stricter standards than other schools. A 2024 report from Breitbart News claimed the Biden-Harris administration had disproportionately investigated Christian and religious colleges while giving less attention to elite nonreligious universities.
In response to the case’s dismissal, a spokesperson for the Trump-era Department of Education said that future enforcement actions will focus on evidence, not ideology. “Unlike the previous Administration, we will not persecute and prosecute colleges and universities based on their religious affiliation,” said DOE spokesperson Ellen Keast. “The Trump Administration will continue to ensure every institution of higher education is held accountable based on facts – but Department enforcement will be for the purpose of serving students, not political bias.”
The fine attracted attention not only because of its size but also because of the implications it had for how federal oversight is applied across different types of institutions. GCU officials maintained that the enforcement measure was not only excessive but also rooted in flawed or misleading interpretations of their practices.
Grand Canyon University consistently maintained that its doctoral program disclosures were honest and transparent. In a previous five-page statement, which followed the announcement of the fine, the school accused the Department of making “lies and deceptive statements.” The administration emphasized that its cost breakdowns were clear and made available to students throughout the admissions process.
The case’s resolution marks the end of what had been a months-long effort by GCU to restore its reputation. The university serves tens of thousands of students and stands as the country’s largest Christian institution of higher learning. The exoneration removes a cloud that had loomed over the school since the initial allegations were made public in 2023.
“Grand Canyon University categorically denies every accusation in the Department of Education’s statement,” the university said after the original fine was announced, as reported by the Associated Press. “We will take all measures necessary to defend itself from these false accusations.”
The $37.7 million fine was the largest single enforcement action attempted under Title IV, which governs how federal student aid is administered. That level of financial penalty emphasized the seriousness with which the Biden-era Department of Education pursued the case. But with the dismissal now in place, it serves instead as one of the most significant reversals in the department’s recent history.
For GCU, the decision allows the university to move forward without the shadow of government sanction. The case’s dismissal affirms GCU's longstanding position that its communications with students were accurate and that the charges against it lacked merit. Whether this changes how similar cases are handled in the future remains to be seen.
