Grand Canyon University (GCU), America’s largest Christian college, has secured a major win against what school officials describe as a prolonged campaign of government harassment. The Federal Trade Commission (FTC) unanimously voted to dismiss its lawsuit against the university’s service provider, Grand Canyon Education, Inc., and its president and CEO, Brian Mueller, on August 15, 2025. This decision fully exonerates GCU after nearly two years of litigation stemming from allegations of deceptive advertising and illegal telemarketing practices.
The lawsuit, filed in December 2023 under the Biden administration, accused GCU and its affiliates of misleading prospective doctoral students about program completion times and costs, falsely marketing the school as a nonprofit, and making unauthorized calls to individuals who had opted out of contact. These claims echoed similar actions by other federal agencies, including the Department of Education (DOE), which had initially denied GCU’s nonprofit status despite approvals from the IRS, the Arizona Board for Private Postsecondary Education, and other bodies.
FTC Chairman Andrew Ferguson explained the dismissal in a statement: “This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss. These losses are compounded by recent events: Grand Canyon secured a victory over the Department of Education in a related matter before the Ninth Circuit; the Department of Education rescinded a massive fine levied on related grounds; and the Internal Revenue Service confirmed that Grand Canyon University is properly claiming 501(c)(3) non-profit corporation designation.”
Mueller, who leads both GCU and Grand Canyon Education, framed the outcome as the end of a targeted assault on the institution’s Christian identity.
“This was not about protecting students and went well beyond normal regulatory activity,” he said. “The language used by these officials, the record fines they sought, and the baseless accusations they made all point to a broader ideological agenda.” He added that the FTC’s action concludes “years of coordinated lawfare by government officials under the Biden Administration against the largest Christian university in the country.”
The timing of these events aligns with a series of setbacks for the original claims. In November 2024, the Ninth Circuit Court of Appeals unanimously ruled that the DOE had unlawfully rejected GCU’s nonprofit status, remanding the case for reevaluation under the correct legal standard. Following this, the IRS reaffirmed GCU’s 501(c)(3) tax-exempt status, underscoring the university’s legitimate charitable operations. In March 2025, a U.S. District Court in Arizona dismissed the FTC’s suit against GCU itself on jurisdictional grounds, noting that the agency lacks authority over true nonprofits.
Perhaps most telling was the DOE’s decision in May 2025 to rescind a record $37.7 million fine it had imposed on GCU for alleged deceptive practices related to doctoral program costs. The dismissal came with prejudice, meaning no findings of wrongdoing and no penalties whatsoever. Mueller responded to that development by stating: “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 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.”
GCU’s resilience amid these challenges highlights broader concerns for conservative institutions facing federal scrutiny. Founded in 1949 as a Baptist college, GCU now serves over 100,000 students, many drawn to its affordable, faith-based education model. The university reverted to nonprofit status in 2018 after a brief for-profit period, a move that drew ire from progressive regulators who viewed it as a loophole for profit-driven entities. Yet, as Mueller emphasized, “As we have stated from the beginning, not only were these accusations false, but the opposite is true. We go above and beyond what is required in our disclosures and are recognized as a leader in this area.”
He further reflected on the ordeal: “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. 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.”
Looking ahead, Mueller expressed optimism: “We support common sense government oversight but we vehemently reject ideologically driven, weaponized government actions that are not applied equally and equitably to all institutions. As an institution that has a strong record of cooperation and great relationships with 26 different regulatory and accrediting bodies, we are doing an exemplary job of addressing the many challenges that are plaguing higher education while also living out our Christian mission both on our campus and in the surrounding community. That is reflected in the growing demand from students and families who are seeking a higher education option at GCU that is affordable and taught from a Christian worldview perspective. That mission, not politics, is our motivation and we look forward to putting our full attention to those efforts in the future.”
This resolution not only vindicates GCU but also serves as a cautionary tale about the dangers of bureaucratic overreach targeting faith-based organizations. As federal agencies under new leadership step back from these pursuits, it reinforces the importance of protecting religious freedoms in education.
