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Education Department Recognizes Grand Canyon University as a Nonprofit After Six-Year Dispute

The decision follows a Ninth Circuit ruling that the department used the wrong legal standard in 2019.

Overview

  • The recognition aligns federal and state authorities with prior determinations by the IRS, the Higher Learning Commission, the State of Arizona, the Arizona Board for Private Postsecondary Education, and the NCAA.
  • A four-year IRS audit concluded in May 2025 reaffirmed that the university meets 501(c)(3) requirements.
  • Earlier in 2025, the Education Department rescinded a $37.7 million fine related to alleged doctoral program cost disclosures, and the Federal Trade Commission dropped its lawsuit against Grand Canyon Education after related claims about GCU marketing were dismissed.
  • GCU says nonprofit status will expand access to private scholarships, open eligibility for certain grants and relief funds, strengthen partnership opportunities, and solidify its NCAA standing while reducing legal expenses.
  • Deep ties to Grand Canyon Education remain, with GCE providing wide-ranging services, GCU representing roughly 97% of GCE’s student services business, and Brian Mueller serving as both GCE’s CEO and the university’s president.