By Matthew Holloway |
In a dramatic reversal of policy from the days of the Biden administration, the U.S. Department of Education (USDOE), under Secretary Linda McMahon and President Donald Trump, rescinded a $37 million fine against Grand Canyon University with prejudice Friday. The decision scraps the largest fine ever levied against a university by the USDOE.
As previously reported by AZ Free News, Grand Canyon University launched an appeal challenging the enormous fine and allegations of advertising false degree costs. The university was supported by the Goldwater Institute, which launched its own lawsuit in February after the USDOE failed to respond to a Freedom of Information Act request to gain clarity on the fine against GCU.
In a statement following the decision, GCU President Brian Mueller described the dismissal as welcome, but unsurprising news.
“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,” he 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.”
The USDOE dismissed the case in its entirety with neither findings, fines, liabilities, nor penalties of any variety. According to GCU, the USDOE, “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.’”
In a statement the University said, “The proposed fine action was, by far, the largest the Department of Education had ever levied against a university. GCU filed an appeal to ED’s Office of Hearings and Appeals, maintaining that the unsubstantiated accusations were gross mischaracterizations based on isolated, out-of-context statements from certain enrollment documents and that, in fact, GCU students receive robust information about the time, cost and credits needed to complete a doctoral degree throughout their enrollment and onboarding process. Moreover, GCU maintains that its disclosures surrounding continuation courses, which are common in higher education doctoral programs, provide more information than is legally required or that other universities typically provide. As such, GCU has consistently insisted that it would contest any fine amount – even $1, let alone $37.7 million.”
In a post to X, Arizona Congressman Abe Hamadeh (R-AZ08) praised the dismissal writing, “The record-breaking fine imposed on Grand Canyon University (@gcu) was just one of many attacks by the Biden Administration on Christian organizations. Congressman Hamadeh applauds the Trump Administration’s decision to rescind the fine with prejudice.”
Congressman Andy Biggs made a similar post saying, “I’ve urged investigation into the outrageous fine since the moment it was handed down by the radical Biden-Harris regime. Thank you @POTUS and @EDSecMcMahon for working to ensure that the weaponization of government against @GCU isn’t allowed to stand!”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
