Grand Canyon University (GCU) in Phoenix, Arizona, has emerged victorious in its ongoing legal battles with federal authorities, particularly during the Biden Administration. The latest development sees the Federal Trade Commission (FTC) dropping its lawsuit against GCU’s principal service provider, Grand Canyon Education. This lawsuit had been part of a broader campaign against GCU, which the university claims was aimed at undermining its operations.
The initiative against GCU began when the Department of Education, under President Biden, imposed penalties against the university for allegedly misleading students about tuition costs. In May, the former administration’s actions drew criticism as the Department of Education rescinded these penalties, marking a significant shift in the agency’s approach. In December 2023, the FTC announced its controversial lawsuit against GCU, alleging “false advertising.” This lawsuit followed a prior decision by the Department of Education to impose a substantial fine on the university, which totaled $37.7 million.
Despite these challenges, GCU maintained its stance that the accusations were unfounded. The university articulated its position in a statement, asserting that recent decisions by the Internal Revenue Service to reaffirm its 501(c)(3) nonprofit status demonstrated the validity of its operations, counteracting claims made by officials at the federal level. They reiterated that “the recent IRS and ED decisions stand in stark contrast to false accusations made by officials in the Biden Administration related to GCU’s nonprofit status and doctoral disclosures.”
The FTC’s recent action to dismiss the lawsuit is a pivotal moment for GCU. Chairman Andrew N. Ferguson noted that the agency, while it inherited the case from the previous administration, recognized the lack of merit in the lawsuit. Ferguson remarked, “This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss.” He added that a series of court rulings had favored GCU, and the university had secured victories in matters related to the disputes surrounding its status.
GCU President Brian Mueller expressed relief at the FTC’s decision and credited the current officials for their objective assessment. “As we have stated from the beginning, not only were these accusations false, but the opposite is true,” Mueller said. He highlighted the university’s commitment to transparency and excellence in its disclosures, stating, “We go above and beyond what is required in our disclosures and are recognized as a leader in this area.”
Mueller emphasized the resilience of GCU amidst these allegations, suggesting that the sustained attacks were part of a broader effort to diminish the standing of a leading Christian university. He insisted, “They threw everything they had at us for four years, and yet, despite every unjust accusation leveled against us, we have not only survived but have continued to thrive as a university.” His comments reflect the university’s determination and the support of its community, calling it a testament to the dedication of faculty, staff, students, and their families.
Moreover, the dismissal of the FTC lawsuit marks the culmination of a lengthy struggle for GCU against perceived coordinated efforts by government officials. The university maintains that these actions were more than mere legal disputes; they were an assault on its mission and values. Mueller affirmed, “That is a testament, first and foremost, to the strength and dedication of our faculty, staff, students and their families. Above all, it speaks to our unwavering belief that the truth would ultimately prevail.”
In summary, GCU’s recent legal victories against federal authorities highlight ongoing tensions between educational institutions and government regulations. As GCU moves forward, it stands as a symbol of resilience against what it labels as “lawfare,” a term used to describe the use of legal tactics to achieve political ends. With the FTC’s unanimous decision to drop its lawsuit, GCU not only reinforces its commitment to its mission but also represents a broader narrative of resistance among educational institutions against top-down regulatory pressure.
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