Education Department Drops Historic $37.7 Million Fine Against Largest Christian University in the US

Some Republican lawmakers have claimed that the Education Department has been unfairly targeting GCU. In May 2024, Arizona Rep. Paul Gosar said:

The Biden administration has waged an all-out assault on GCU seemingly because it is the largest Christian university in the country. This is the latest example of the Biden administration’s weaponization of the federal government.

In November 2024, a three-judge panel of the U.S. Court of Appeals for the Ninth Circuit unanimously determined that the Department of Education used the wrong standard to deny nonprofit status to GCU, and the court remanded the case back to the department.

In a May 16 statement, GCU said it was “hopeful that process [of being approved as a nonprofit] will be completed soon, as the IRS has already determined that GCU meets all legal requirements as a 501(c)(3) tax-exempt entity.”

“In light of the Ninth Circuit ruling,” said GCU, “10 of Arizona’s Congressional members have sent a bipartisan letter of support for GCU’s nonprofit status to ED [Education Department].”

Regarding the department’s decision to rescind the $37.7 million fine, GCU said:

ED confirmed it has not established that GCU violated any Title IV requirements, including the claim that GCU ‘substantially misrepresented’ the cost of its doctoral programs that was alleged by ED officials under the Biden Administration.

“The Dismissal stated unequivocally that ‘there are no findings against GCU, or any of its employees, officers, agents, or contractors, and no fine is imposed,’” said GCU.

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Furthermore, GCU said that in March, “The U.S. District Court of Arizona dismissed the FTC’s lawsuit against Grand Canyon University.” The court concluded that “the FTC does not have jurisdiction under the FTC Act because GCU is not a corporation ‘operating for its own profit or that of its members.’”

On Wednesday, June 4, U.S. Rep. Ilhan Omar (D-MN) posted a clip of an exchange between herself and Secretary of Education Linda McMahon over the rescinding of the historic fine against GCU.

“I asked Secretary McMahon why her department rescinded a $37 million fine against Grand Canyon University, a for-profit college that misled students,” said Omar. “She couldn’t explain why the fine was pulled or if the agency would do right by defrauded borrowers. Students deserve answers.”

During the exchange, McMahon seemed to be about to answer Omar about why the fine was rescinded before Omar cut her off. McMahon did question Omar’s framing of the situation but said she (McMahon) “will look into it further and get back to you.” McMahon agreed to give Rep. Omar an update in writing.