Arizona Legislature

Congressman Crane Applauds End to Federal Lawsuit Against Grand Canyon University

Following the Federal Trade Commission's decision to drop its lawsuit against Grand Canyon University, one of the biggest Christian universities in the country, Congressman Eli Crane is announcing a victory for religious freedom and educational choice.

Eli Crane, a strong advocate of GCU, said he was pleased with the FTC's decision, which he said validated his long-standing allegations that the Biden administration unfairly singled out the Christian institution for political purposes.

"Good. When Joe Biden wasn't targeting his political opponent or forcing a historic border crisis on everyday Americans, he was targeting the largest Christian university in the country," Crane stated in response to AzCentral

FTC Drops Controversial Lawsuit

The FTC unanimously decided to withdraw its 2023 complaint against Grand Canyon Education and university president Brian Mueller. The university was accused of misleading people about the costs of its PhD programs, according to the lawsuit.

Specifically, the FTC claimed Grand Canyon University told students that accelerated doctoral programs would cost the equivalent of 60 credits, when approximately 78% of students had to complete five or more additional courses, adding thousands of dollars in unexpected expenses.

The university had consistently denied these allegations, with officials characterizing the legal challenges as part of a "coordinated effort by former officials within the Biden Administration to undermine a thriving Christian university,” as reported by GCU News

Legal Victories

The FTC's decision to dismiss the complaint is the most recent in an ongoing series of decisions that have supported Grand Canyon University across several federal courts:

Department of Education: Similar to the FTC action, the university was hit with a $37.7 million fine, which the Department of Education canceled.

Appeals Court Victory: The Department of Education's decision to deny GCU nonprofit status was overruled by a panel of the Ninth Circuit Court of Appeals, which sent the issue for review under alternative legal criteria.

IRS Confirmation: The Internal Revenue Service reaffirmed Grand Canyon University's 501(c)(3) nonprofit status following a comprehensive four-year audit.

District Court Dismissal: The original FTC lawsuit had already been dismissed by the United States District Court of Arizona on jurisdictional grounds before the agency's formal withdrawal.

New FTC Leadership Takes Different Approach

The unanimous decision to drop the case came from FTC Chairman Andrew N. Ferguson and the other two commissioners, who cited the mounting legal setbacks and recent favorable rulings for the university.

"This case, which we inherited from the previous administration, was filed nearly two years ago and has suffered losses in two motions to dismiss," Ferguson stated in the ruling. 

He noted that the losses were "compounded by recent events," including Grand Canyon's victory over the Department of Education and the IRS confirmation of the school's nonprofit status.

University President Responds

Grand Canyon University President Brian Mueller said he was grateful for what he saw as a more unbiased investigation by current FTC officers. 

"As we have stated from the beginning, not only were these accusations false, but the opposite is true," Mueller said. "We go above and beyond what is required in our disclosures and are recognized as a leader in this area."

Claims of Coordinated Political Action

University officials have maintained that the various legal challenges represented a coordinated political effort against Christian higher education. They point to public statements made in October 2021 by then-FTC Commissioner Rohit Chopra, who claimed that his organization would work together with the Department of Veterans Affairs and the Department of Education to strengthen oversight of for-profit organizations.

This announcement was made soon after Grand Canyon University, which had nonprofit approval from other regulatory agencies, filed a lawsuit challenging the Department of Education's classification of the institution.

With all federal legal challenges now resolved in the university's favor, Grand Canyon University is focusing on its educational mission. President Mueller emphasized the school's commitment to providing affordable Christian higher education while maintaining transparency in its operations.

"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," Mueller stated.

Ericka Rodriguez Diaz

Ericka Piñon is a reporter for Cactus Politics specializing in Arizona Legislative Correspondent. With 1 year on the ground in Phoenix, Arizona, they have been cited by Cactus Politics, Big Energy News, The Floridian Press, and Texas Politics. Her focus is on Public Relations and Communications.

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