The College Fix

Trump administration dismisses Biden-era probe alleging ‘misrepresented’ program costs

The U.S. Department of Education revoked a $37.7 million fine proposed against Grand Canyon University in Arizona under former President Joe Biden’s administration, the school announced Friday.

“In a Joint Stipulation of Dismissal order issued by ED’s Office of Hearings and Appeals, the Department dismissed the case with no findings, fines, liabilities or penalties of any kind,” according to a news release from the private Christian university.

The department also rescinded the fine with prejudice, meaning the lawsuit can’t be reinstated.

The department confirmed it found no evidence that GCU violated Title IV requirements, including the Biden-era allegation that the school had “substantially misrepresented” the cost of its doctoral programs, the release states.

Further, it states the school’s disclosures about its doctoral programs exceed both legal requirements and the typical transparency of other universities. Consequently, the university has “insisted that it would contest any fine amount – even $1, let alone $37.7 million.”

The release also states that multiple agencies and courts, including the IRS, State of Arizona, Higher Learning Commission, Arizona Private Postsecondary Board of Education, Arizona State Approving Agency, and Ninth Circuit Court of Appeals, among others, have either directly refuted, ruled against, or curbed government overreach concerning false claims about GCU.

“The facts clearly support our contention that we were wrongly accused of misleading our Doctoral students and we appreciate the recognition that those accusations were without merit,” GCU President Brian Mueller said.

“GCU is a leader in innovation, transparency and best practices in higher education and we look forward to working cooperatively with the Department in the future – just as we have with all regulatory agencies,” he said.

Department spokesman Ellen Keast told the Daily Caller that “unlike the previous Administration,” President Donald Trump’s ED “will not persecute and prosecute colleges and universities based on their religious affiliation.”

“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,” she said.

The department first announced the fine in 2023, claiming the school lied to students and alumni about the cost of its Ph.D. programs for several years, The College Fix previously reported. This was the largest fine the agency had ever levied against a university.

In response, the Goldwater Institute sought public records from the Biden administration pertaining to the rationale behind the fine under the Freedom of Information Act. The conservative public policy think tank filed a lawsuit when the administration failed to comply.

Last year, a state auditor’s office review found no proof of any wrongdoing on the part of GCU. However, the department and the Federal Trade Commission under President Biden continued their campaigns against the school, The Fix previously reported.

Despite the ongoing legal battle, GCU recently celebrated its largest graduating class ever, with over 31,000 students in its 75-year history, The Christian Post reported.

“Our focus remains on partnering directly with employers to help them address their workforce shortages, especially in critical sectors like education, healthcare, technology, engineering, social work, counseling and the military,” President Mueller said.

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IMAGE CREDIT AND CAPTION: GCU slogan shown in university video; Grand Canyon University/YouTube

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