The U.S. Department of Education has dismissed a record-setting $37.7 million fine against Grand Canyon University, bringing closure to a contentious dispute involving the cost disclosures of the school’s doctoral programs.

According to the Christian Post, the federal decision ends a high-profile case without imposing penalties or confirming any wrongdoing by the university, its staff, or affiliated individuals.

The department’s Office of Hearings and Appeals issued a Joint Stipulation of Dismissal, closing the case “with prejudice,” which prevents the matter from being reopened in the future. The dismissal affirmed that no fines would be levied against Grand Canyon University (GCU), its employees, officers, or contractors.

GCU, located in Phoenix, Arizona, is the largest Christian university in the country based on enrollment. Originally established in 1949 by the Southern Baptist Convention, the institution transitioned to a for-profit model in 2004 amid financial hardship.

Last month, the university reported graduating over 31,000 students, including more than 25,000 enrolled in online programs and over 5,600 who attended classes on campus.

Background Of The Federal Allegations

The Department of Education originally announced the multimillion-dollar fine in October 2023. It was based on findings from an investigation alleging GCU had misrepresented the cost of its doctoral programs to more than 7,500 enrolled and prospective students.

At the center of the claim were advertised price estimates ranging from $40,000 to $49,000. However, the department asserted that less than 2% of students were able to complete their doctoral degrees within that price window.

The federal complaint further stated that required continuation courses were not appropriately disclosed to students. According to the department’s findings, these courses added between $10,000 and $12,000 to the total cost of the programs.

University Pushback On The Charges

GCU President Brian Mueller responded to the original fine with strong opposition. He consistently defended the university’s disclosure processes, arguing that the institution has always maintained transparency with its students at all degree levels.

Mueller argued that GCU informs students about the total cost of a program, not just the initial year, at the bachelor’s, master’s, and doctoral levels. He emphasized this level of full-program disclosure was beyond what federal regulations require, which only mandate disclosure for first-year undergraduate students.

"We give the cost of the entire program to students up front," Mueller said in a 2023 interview. "Not just the first year, like many institutions do for first-year freshmen."

Broader Scope Of Scrutiny Raised Questions

Following the department’s announcement of the fine, GCU came under further federal scrutiny. The school became the subject of related lawsuits and investigations, including an inquiry by the Federal Trade Commission and a financial audit from the Department of Veterans Affairs.

Those legal and regulatory efforts began to unravel in the university’s favor earlier this year. In March 2025, the U.S. District Court of Arizona dismissed the FTC lawsuit, citing a lack of jurisdiction over the private university.

The series of penalties and investigations prompted criticism from some education advocates. A 2024 report by the American Principles Project showed that Christian colleges, despite enrolling less than 10% of students nationwide, received nearly 70% of the Education Department’s institutional fines.

Comparing Fines Across Higher Education

The same report noted a significant disparity in the size of fines imposed on Christian versus secular institutions. The average fine distributed to religious colleges amounted to $815,000, in contrast with an average of $228,571 for non-religious schools.

Mueller highlighted these figures when criticizing the Education Department's enforcement tactics. He compared the $37.7 million fine against GCU to much lower fines for criminal offenses at other universities, including $2.4 million against Penn State and $4.5 million against Michigan State.

"To fine any amount to a university that is recognized within the industry for setting the gold standard for transparency — there’s no logic to that," he said. "We’ve presented at seven major conferences because of our level of transparency."

Statements From Both Sides On The Resolution

In a written statement following the dismissal, GCU described the decision as a full exoneration. “There are no findings against GCU, or any of its employees, officers, agents, or contractors,” the university said, emphasizing that no financial penalties would be applied.

Mueller reiterated the university’s stance, stating, “The facts 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 added, “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.”

Department Defends Equal Enforcement

A spokesperson from the Department of Education commented on the agency’s broader commitment to enforcement practices. The official drew a contrast between different presidential administrations, asserting, “Unlike the previous administration, we will not persecute and prosecute colleges and universities based on their religious affiliation.”

The spokesperson added that “department enforcement will be to serve students, not political bias.” This response follows long-standing claims by GCU and other religious institutions that regulatory agencies disproportionately target faith-based schools.

With the dismissal of one of the department’s largest-ever fine decisions, GCU now moves forward cleared of all federal allegations related to the case. The university continues to serve tens of thousands of students both online and at its primary Phoenix campus.