The Department of Education granted nonprofit status to Grand Canyon University on Monday, ending a Biden administration campaign to designate the private Christian school as a predatory for-profit institution.
Ellen Keast, the federal agency’s press secretary for higher education, said the decision implements a November 2024 panel ruling from the 9th U.S. Circuit Court of Appeals that officials improperly rejected Grand Canyon’s switch from for-profit to nonprofit status.
“The Department reexamined Grand Canyon University’s request to be recognized as a nonprofit, following the Ninth Circuit decision directing us to use a different legal standard,” Ms. Keast said in a written statement to The Washington Times.
“After reviewing the record, including new evidence submitted by GCU, the Department approved the request for recognition of nonprofit status,” she added.
The decision comes after the IRS, the NCAA, Arizona’s state government and the Higher Learning Commission previously recognized the Phoenix campus as a nonprofit.
The Biden administration disregarded such reports in a series of investigations that accused GCU of deceiving doctoral students about program costs to boost profits.
“This decision removes the cloud of confusion over our nonprofit status and allows us to put our complete focus and resources on our mission to provide affordable, Christian higher education to students from all socioeconomic backgrounds,” university President Brian Mueller said in a statement. “We are excited to move forward with clarity and purpose.”
Founded in 1949, Grand Canyon University adopted a for-profit model in 2004 as it struggled financially. Enrollment and revenues surged, leading the school in 2019 to revert to nonprofit status.
The Biden Education Department accused the campus in November 2023 of behaving as a predatory for-profit institution and ordered it to pay a record $37.7 million fine.
The Biden Education Department claimed that tuition ran $10,000 to $12,000 higher than the advertised $40,000 to $49,000 for 78% of doctoral graduates who took “continuation courses” — a common requirement for university students writing dissertations after finishing their coursework.
Building on the fine, the Federal Trade Commission sued the university in December 2023. That complaint accused the school of using misleading advertising and telemarketing to falsely present itself as nonprofit and suggest that programs cost less than they did.
At the end of December 2023, Grand Canyon received word that the Department of Veterans Affairs had launched a separate financial audit.
University officials called the probes retaliation for filing an unsuccessful 2021 lawsuit against the rejection of their state-recognized switch to nonprofit status.
Multiple courts and regulatory agencies sided with the university before and after President Trump returned to office in January.
The VA’s Arizona State Approving Agency issued a March 2024 report of “no substantiated findings” of wrongdoing in their review of Grand Canyon University records. This ended the VA probe.
In a March 2025 ruling, the U.S. District Court for the District of Arizona upheld the university’s change in status and accused the FTC of overreaching for broad authority over nonprofits.
The FTC dropped its lawsuit in August, citing the court’s ruling that the Education Department applied an “incorrect legal standard” in denying nonprofit status.
In May, the Trump Education Department revoked the $37.7 million fine. It accused the Biden team of “political bias” in singling out one of the nation’s largest Christian universities for punishment.
Last spring, Grand Canyon University graduated a record-high 31,104 students, including 25,435 online learners and 5,669 who took classes on campus.
Mr. Mueller thanked the Trump team on Monday for adhering to the 9th Circuit ruling after applying “the correct legal standard” in “an objective and thorough review” of campus operations.
His office noted that federal nonprofit status gives Grand Canyon students access to federal grants, benefits, relief, and scholarships that the Biden team denied them, as well as NCAA Athletics participation.
“We look forward to working with the Department in a cooperative manner moving forward and being part of the conversation to address the many challenges facing higher education,” Mr. Mueller added.
• Sean Salai can be reached at ssalai@washingtontimes.com.
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