Goldwater Lawsuit Hearing Aims to Unravel $37 Million Fine Imposed by Biden Admin on GCU

By Matthew Holloway |

In October 2023, the U.S. Department of Education (DOE) imposed a significant $37 million fine against Grand Canyon University (GCU) in Phoenix, the nation’s largest privately owned Christian university. Critically, the DOE did not disclose any serious complaints against GCU prior to levying such a large penalty. In response, the Goldwater Institute announced a lawsuit aimed at uncovering the rationale behind the fine, with a hearing scheduled for April 18, 2024.

The Goldwater Institute asserts that the DOE claims GCU violated federal disclosure rules regarding continuing education courses for PhD students. GCU officials strongly contest these allegations. Furthermore, the DOE’s press release accompanying the fine lacks any grievances presented by students or the public to substantiate its claims.

As the case progresses in U.S. District Court, the Goldwater Institute is pushing to compel the DOE to disclose the specifics of the alleged violations. They have pointed out a troubling remark from Secretary of Education Miguel Cardona, who previously voiced intentions to “shut down” GCU, igniting suspicion about the motivations behind the fine.

The credibility of the DOE’s accusations is further undermined by the fact that GCU has not increased tuition in over 15 years. Goldwater Institute has expressed concern over the fine’s announcement, emphasizing the lack of substantial complaints and the possibility of coordinated efforts among various federal agencies targeting GCU.

Efforts to gather more information through a Freedom of Information Act (FOIA) request were met with silence. The request seeks communications among DOE and federal officials discussing the fine against GCU, potentially shedding light on the motivations behind this unprecedented penalty. Yet, the DOE has not provided the requested records, raising questions about transparency.

Staff attorney Stacy Skankey from Goldwater stressed GCU’s success as a model educational institution, noting its commitment to affordability and a solid record of graduate employment. She contrasted GCU’s experience with other universities facing challenges regarding enrollment and ideological controversies.

In a December op-ed for the Washington Times, Goldwater Institute Vice President Jon Riches highlighted the importance of rectifying what he sees as an unjust action against GCU, arguing that higher education should prioritize innovation and student achievement rather than political conformity.

The case initially emerged during the Biden Administration, receiving little attention from the former Secretary of Education. Now, as the April hearing approaches, there is potential for a shift in the DOE’s stance regarding GCU, which could enhance transparency that has been sought since the inception of this issue.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.