The Trump Division of Training has rescinded penalties imposed by the Biden Regime towards Phoenix, Arizona’s Grand Canyon College (GCU) for allegedly deceptive college students about tuition prices.
This was one among a number of assaults on the college throughout their years-long battle with the federal authorities beneath Biden.
As The Gateway Pundit reported in December 2023, the FTC introduced a lawsuit towards the college, alleging “false promoting,” after the Division of Training imposed an enormous $37.7 million fine on October 31.
“The proposed fantastic motion was, by far, the biggest the Division of Training had ever levied towards a college,” the college stated in a information launch.
GCU President Brian Mueller stated, “The info clearly help our competition that we had been wrongly accused of deceptive our Doctoral college students and we respect the popularity that these accusations had been with out advantage.”
Moreover, the college announced on Tuesday that the IRS reaffirmed its 501(c)(3) nonprofit standing, “additional refuting lawfare” the college has confronted. “The current IRS and ED choices stand in stark distinction to false accusations made by officers within the Biden Administration associated to GCU’s nonprofit standing and doctoral disclosures,” the college stated.
This comes after Arizona’s total congressional delegation signed a letter dated March 5, urging the administration to revive GCU’s nonprofit standing after its recognition was revoked by the Biden Division of Training. Nonetheless, GCU stated the college remains to be “cooperating with ED in that course of and is hopeful a call might be rendered quickly.”
BIG
This March, Congressman Hamadeh joined your complete Arizona congressional delegation in defending Grand Canyon College towards assaults from the Biden administration.
Yesterday, @POTUS and @EDSecMcMahon rescinded the egregious $37 million fantastic.https://t.co/qcJsR352hd pic.twitter.com/x16YkVkGoD
— Workplace of Congressman Abe Hamadeh (@RepAbeHamadeh) May 17, 2025
GCU, Arizona’s high Christian school and one of many nation’s most outstanding, was not the one Christian college that got here beneath hearth by the anti-Christian Biden Regime.
70% of enforcement-based actions taken by the Biden regime’s training division focused non secular and profession colleges.
70% of Biden Education Enforcement Targeted Christian and Career Colleges
In a news release final week, GCU celebrated the Division of Training’s determination:
ED states unequivocally that there aren’t any findings towards GCU
(Might 16, 2025) – The U.S. Division of Training (ED) has rescinded a $37.7 million fantastic, with prejudice, that was proposed towards Grand Canyon College, clearing the college of any wrongdoing.
In a Joint Stipulation of Dismissal order issued by ED’s Workplace of Hearings and Appeals, the Division dismissed the case with no findings, fines, liabilities or penalties of any type. ED confirmed it has not established that GCU violated any Title IV necessities, together with the declare that GCU “considerably misrepresented” the price of its doctoral applications that was alleged by ED officers beneath the Biden Administration. The Dismissal acknowledged unequivocally that “there aren’t any findings towards GCU, or any of its workers, officers, brokers, or contractors, and no fantastic is imposed.”
GCU President Brian Mueller stated the fantastic dismissal is welcome information however he was not shocked by the choice. “The info clearly help our competition that we had been wrongly accused of deceptive our Doctoral college students and we respect the popularity that these accusations had been with out advantage,” Mueller stated. “GCU is a pacesetter in innovation, transparency and finest practices in greater training and we look ahead to working cooperatively with the Division sooner or later – simply as we’ve with all regulatory businesses.”
The proposed fantastic motion was, by far, the biggest the Division of Training had ever levied towards a college. GCU filed an attraction to ED’s Workplace of Hearings and Appeals, sustaining that the unsubstantiated accusations had been gross mischaracterizations based mostly on remoted, out-of-context statements from sure enrollment paperwork and that, in actual fact, GCU college students obtain strong details about the time, price and credit wanted to finish a doctoral diploma all through their enrollment and onboarding course of. Furthermore, GCU maintains that its disclosures surrounding continuation programs, that are widespread in greater training doctoral applications, present extra info than is legally required or that different universities usually present. As such, GCU has constantly insisted that it could contest any fantastic quantity – even $1, not to mention $37.7 million.
The dismissal of the fantastic motion coincides with different regulatory our bodies and courts which have additionally refuted allegations that GCU misrepresented the price and credit of a doctoral program.
- Two federal courts beforehand rejected comparable allegations associated to GCU’s doctoral disclosures in Younger v GCU.
- The Larger Studying Fee deemed the College’s disclosures “strong and thorough” in its 2021 complete overview.
- The Arizona State Approving Company of the Division of Veterans Affairs in March 2024 discovered “no substantiated findings” in its audit that checked out GCU’s disclosures and processes.
The dismissal additionally follows two current authorized victories for GCU which have negated federal authorities actions taken towards the college.
- In November 2024, a three-judge panel of the Ninth Circuit Courtroom of Appeals dominated unanimously that ED acted unlawfully and exceeded its authority by making use of an incorrect authorized normal when it refused to acknowledge GCU’s lawful nonprofit standing. The Ninth Circuit vacated ED’s inaccurate dedication and remanded the case again to the company to use the right normal. GCU is hopeful that course of might be accomplished quickly, because the IRS has already decided that GCU meets all authorized necessities as a 501(c)(3) tax-exempt entity. In gentle of the Ninth Circuit ruling, 10 of Arizona’s Congressional members have despatched a bipartisan letter of help for GCU’s nonprofit standing to ED.
- In March 2025, the U.S. District Courtroom of Arizona dismissed the FTC’s lawsuit towards Grand Canyon College, concluding the FTC doesn’t have jurisdiction beneath the FTC Act as a result of GCU shouldn’t be a company “working for its personal revenue or that of its members.” In actual fact, GCU has operated as a 501(c)(3) tax-exempt Arizona nonprofit company fulfilling charitable functions for all however 14 years of its 75-year historical past and most lately since finishing a transaction in 2018 to revert to that standing. The District Courtroom ruling emphasised that “the mere truth {that a} nonprofit is incomes income and increasing doesn’t remodel it right into a for-profit. No federal courtroom has ever adopted such a broad studying of the FTC Act’s definition of a company, which might… give the FTC authority over all method of nonprofit entities.”
The FTC lawsuit continues towards Grand Canyon Training, which supplies providers to GCU, and Mueller regardless of the actual fact the lawsuit basically raises the identical manufactured nonprofit and doctoral disclosure claims which were refuted, rejected and dismissed. Any FTC continuation of its nonprofit disclosure allegations following the 9th Circuit ruling and IRS determination, and the doctoral disclosure allegations following ED’s fine-action dismissal and the opposite courtroom rulings, would solely additional underscore the multi-agency assault initiated beneath the Biden Administration to tie GCU up with protracted authorized proceedings.
You will need to acknowledge that the entire following businesses and courts have now both immediately refuted, come to the alternative conclusion or reigned in authorities overreach concerning false claims surrounding GCU’s doctoral disclosures and/or tax-exempt 501(c)(3) Arizona nonprofit standing:
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U.S. Division of Training
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IRS
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State of Arizona
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Larger Studying Fee
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Arizona Personal Postsecondary Board of Training
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Arizona State Approving Company of the Division of Veterans Affairs
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Ninth Circuit Courtroom of Appeals in Grand Canyon College v. Cardona
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11th Circuit Courtroom of Appeals and U.S. District Courtroom for the Northern District of Georgia in Younger v. GCU
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U.S. District Courtroom of Arizona in FTC v. Grand Canyon Training, Inc.; Grand Canyon College; and Brian E. Mueller