Grand Canyon University Cleared By Federal Trade Commission After Years-Long Investigation

The largest Christian university in the United States has been cleared of federal allegations, marking a major legal and public relations victory for Grand Canyon University (GCU) after years of scrutiny under the Biden administration.

Last week, the Federal Trade Commission (FTC) unanimously voted to drop its lawsuit against GCU, its parent services provider Grand Canyon Education, Inc., and the university’s president and CEO, Brian Mueller. The case had accused the school of deceptive marketing, misrepresenting its nonprofit status, and violating telemarketing laws — allegations GCU has long denied.

FTC Walks Away After Legal Defeats and Reversals

“This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss,” said FTC Chairman Andrew Ferguson, acknowledging the FTC’s decision was rooted in both legal setbacks and new developments across federal agencies.

Among those developments:

• The U.S. Court of Appeals for the Ninth Circuit ruled in favor of GCU in a related case involving the Department of Education.
• The Department of Education rescinded a $37.7 million fine levied against the university for similar claims.
• The IRS confirmed GCU’s nonprofit status under 501(c)(3), countering previous attempts to discredit its financial structure.

Mueller: “A Coordinated Attack from the Biden Administration”

GCU President Brian Mueller hailed the FTC’s decision as a vindication after what he described as coordinated lawfare against the Christian university.

“They threw everything they had at us for four years, and yet, despite every unjust accusation leveled against us, we have not only survived but have continued to thrive,” Mueller said in a statement.

Mueller suggested that multiple federal agencies — particularly under the Biden administration — had acted in tandem to target the university based on ideological bias, noting the Department of Education’s refusal to acknowledge GCU’s nonprofit status, despite recognition from the IRS, Arizona’s state education board, and its accreditor, the Higher Learning Commission.

Case Highlights Broader Debate on Higher Ed Oversight

While critics of for-profit education praised the initial FTC action in 2023, others saw it as an example of federal overreach, especially given the school’s religious identity and political leanings. Conservative commentators and education reformers rallied behind GCU, arguing that the Biden administration’s regulatory agencies were disproportionately targeting Christian and politically right-leaning institutions.

The FTC’s initial claims revolved around three issues:

• That GCU misled prospective doctoral students about how long it would take to complete their degree.
• That the school deceptively marketed itself as a nonprofit despite operating with a business-minded model.
• That it illegally contacted prospective students who had requested not to be called.

Each of these points had already faced scrutiny in separate court challenges, where the school prevailed or had enforcement actions reversed.

Bipartisan Shift in FTC May Have Turned the Tide

Notably, current FTC Chair Andrew Ferguson, appointed under President Trump earlier this year, emphasized the importance of legal precedent and the FTC’s duty to follow it. His statement suggested the lawsuit no longer aligned with the agency’s priorities, given the broader legal context and outcomes.

“These losses are compounded by recent events,” Ferguson said, referring to the agency’s growing difficulty justifying the case.

Campus Reaction and Broader Implications

The news was met with relief and celebration on GCU’s Phoenix campus, where enrollment and development projects have continued to grow despite the legal headwinds. The university, which now serves more than 115,000 students across campus and online programs, has consistently argued it is being punished for its success in Christian education.

Education watchdogs on the left maintain that GCU’s structure still blurs the line between nonprofit education and commercial operations, but many legal experts now say the federal case lacked the foundation to proceed.

Looking Forward

With both the FTC lawsuit dropped and the DOE fine rescinded, GCU appears to have cleared its biggest regulatory hurdles — at least for now. The university says it will focus on expanding its programs and supporting student success, while continuing to push back on what it calls politically motivated interference.

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