Christian University Prevails as FTC Ends Politically Motivated Lawsuit

Lawsuit, Unsplash

In a nearly two-year legal battle, the Federal Trade Commission (FTC) has finally dropped its charges against Grand Canyon University (GCU), Grand Canyon Education Inc. (GCE), and GCU President Brian Mueller. The lawsuit accused them of misleading doctoral students about program costs by downplaying required continuation courses, misrepresenting GCU’s nonprofit status, and violating telemarketing rules. 

According to Grand Canyon University’s website, FTC Chairman Andrew N. Ferguson acknowledged the weaknesses of the case: 

“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a victory over the Department of Education in a related matter before the Ninth Circuit; the Department of Education rescinded a massive fine levied on related grounds; and the Internal Revenue Service confirmed that Grand Canyon University is properly claiming 501(c)(3) non-profit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.” 

GCU’s Response 

GCU’s President Brian Mueller expressed his gratitude for the dismissal, making clear that the university had been confident from the start. 

“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.” 

Mueller added: 

“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.” 

His remarks underscore how the accusations not only failed but also strengthened the resolve of the GCU community. 

Political Targeting Allegations 

The dismissal comes in the context of broader debates over whether federal agencies are being used to pursue political agendas. Under President Joe Biden, GCU faced multiple investigations under the guise of “consumer protection.” These inquiries demanded enormous amounts of documentation and data, costing the university millions of dollars and thousands of employee hours. 

According to Fox News, “The Department of Education under the Biden administration denied GCU’s nonprofit recognition after it was approved by the Arizona Board for Private Postsecondary Education, the Internal Revenue Service, the State of Arizona, and the Higher Learning Commission.” 

Critics argue this is part of a pattern stretching back to the Obama Administration, when the IRS was exposed for targeting conservative and Christian nonprofit organizations, often by delaying or denying their applications for tax-exempt status. That history, many say, shows how powerful bureaucratic agencies can be weaponized against groups with opposing worldviews. By contrast, during the Trump Administration, conservative and faith-based organizations have enjoyed a far friendlier environment to operate and lead in. 

Major Legal Victories 

Shortly before the FTC dropped its case, the Department of Education rescinded a $37.7 million fine in May, another major win for GCU. The Ninth Circuit Court also sided with the university in its dispute over nonprofit status, and the IRS reaffirmed GCU’s 501(c)(3) designation. Together, these developments left little ground for the FTC’s charges to stand on. 

In an interview with Fox News, Mueller celebrated the decision and reiterated GCU’s guiding principles: 

“We believe in two views here in America—a free market system and a Christian worldview perspective. Both are foundational to what we do.” 

His statement highlighted not only GCU’s mission but also the broader clash of values at the heart of the dispute. 

Looking Ahead 

While the dismissal marks an important victory for GCU, it also raises broader questions about the use of federal power. With just over three years remaining in President Trump’s administration, much work remains to ensure federal agencies undergo reforms that prevent future targeting of nonprofit organizations. Ensuring that baseless charges, such as those brought against Grand Canyon University, are dismissed quickly and fairly is key to restoring confidence in America’s institutions. 

For now, GCU and its leadership are turning the page, but the fight serves as a reminder of the need for vigilance. Universities and organizations across the country will be watching closely to see whether this case represents a turning point in how government agencies wield their authority. 

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