The Federal Trade Commission (FTC) has decided to dismiss all parts of its lawsuit against the president of Grand Canyon University (GCU) and the school’s former parent organization, concluding the Biden-era legal actions.
According to a Friday press release, GCU President Brian Mueller stated that the five investigations into GCU, conducted by multiple agencies, were "ideologically driven, weaponized government actions" that were unfairly targeted, unlike other institutions of higher education.
"As we have stated from the beginning, not only were these accusations false, but the opposite is true," Mueller said. "We go above and beyond what is required in our disclosures and are recognized as a leader in this area."
In a unanimous decision, FTC Chairman Andrew N. Ferguson and two commissioners placed blame on the Biden administration for the situation.
Ferguson highlighted that the FTC's ruling followed GCU’s recent legal success against the Department of Education in the U.S. Ninth Circuit Court of Appeals, a large fine revoked by the department, and confirmation from the IRS that the school's 501(c)(3) nonprofit status is legitimate after a four-year audit.
In January 2024, the FTC filed a lawsuit accusing GCU of deceiving students about the costs of its doctoral programs and its nonprofit status, as well as engaging in illegal telemarketing practices.
This action by the FTC came a few months after the Department of Education issued an unprecedented $37.7 million fine, claiming that the school misled students about the costs of its doctoral programs on its website.
The Department of Education claimed that, though GCU advertised a cost between $40,000 and $49,000, less than 2% of doctoral graduates completed their programs within that budget, as additional courses often added $10,000 to $12,000 to the total cost.
In May, GCU was cleared of any wrongdoing through a Joint Stipulation of Dismissal issued by the Department of Education's Office of Hearings and Appeals, which stated, "there are no findings against GCU, or any of its employees, officers, agents, or contractors, and no fine is imposed."
The department emphasized, "Unlike the previous administration, we will not persecute and prosecute colleges and universities based on their religious affiliation."
Founded in 1949 as a nonprofit college by the Southern Baptist Convention, GCU had a lengthy history of disputes with the federal government, starting when it sued in 2021 after the department rejected its nonprofit status for Title IV funding purposes.
In 2004, amid financial struggles, the school temporarily became a for-profit institution but sought to revert to a 501(c)(3) tax-exempt nonprofit status in 2018. This reclassification was approved by the IRS, the Higher Learning Commission, the State of Arizona, the Arizona Private Postsecondary Board, and NCAA Athletics.
