The U.S. Department of Education has officially rescinded a record-breaking $37.7 million fine previously levied against Grand Canyon University (GCU), putting an end to a lengthy dispute over alleged deceptive practices. The university confirmed the withdrawal of the penalty, which had been the largest ever proposed by the department against a single higher education institution.
Grand Canyon University President Brian Mueller welcomed the decision, maintaining that the university had been wrongly accused. “The facts clearly support our contention that we were wrongly accused of misleading our doctoral students,” Mueller said in a public statement. “We appreciate the recognition that those accusations were without merit.” He reaffirmed the university’s commitment to transparency, innovation, and compliance, adding that GCU looked forward to continued cooperation with regulatory agencies.
Origins of the Dispute and Grand Canyon University’s Response
The fine was initially imposed in October 2023, following a federal investigation that claimed a large majority of GCU’s doctoral students, approximately 78% of graduates from 2017 to 2022, were required to take additional courses, leading to unanticipated costs of at least $10,000. The Department of Education argued that this constituted misleading and deceptive behavior on the part of the institution.
In response, GCU filed an appeal the following month. President Mueller strongly criticized the department’s actions, suggesting that the fine was politically or ideologically motivated. He described the penalty as “ridiculous” and accused the government of unfairly targeting the institution. At the time, he pointed out that Liberty University, another prominent Christian university, was also facing a $37 million fine for unrelated allegations. “It’s interesting, isn’t it,” Mueller said, “that the two largest Christian universities in the country are both being fined almost the identical amount at almost the identical time?”
Though Mueller did not draw any direct conclusions, he questioned the timing and similarity of the fines, suggesting a possible pattern of discrimination against faith-based institutions.
Legal Battle Ends in Vindication for GCU
The Department of Education’s decision to rescind the fine “with prejudice” means the case is now closed and cannot be reopened. This development marks a significant legal and reputational victory for Grand Canyon University, ending what has been a yearslong legal and regulatory standoff.
The case had drawn national attention due to the scale of the penalty and the university’s status as one of the largest Christian institutions in the country. With the fine lifted, GCU can move forward without the financial and administrative burden of the dispute.
President Mueller emphasized that the university remains dedicated to upholding high standards in higher education. “GCU is a leader in innovation, transparency, and best practices,” he said. “We remain committed to serving our students with integrity.”
The resolution not only restores the university’s standing but may also signal a shift in how faith-based institutions respond to future federal oversight.
