Christian university in Arizona wins battle with Department of Education over non-profit status

The Ninth Circuit Court of Appeals determined that the Department of Education was wrong in denying Grand Canyon University non-profit status.

The school president condemned the Department of Education’s attempt at obstruction, saying: ‘People try to make something political out of everything.’

Grand Canyon University in Arizona recently scored a legal victory against the Biden administration.

On Nov. 8, the Ninth Circuit Court of Appeals determined that the Department of Education “acted unlawfully by applying the incorrect legal standard in determining Grand Canyon University’s nonprofit status,” GCU announced. 

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At the heart of the controversy was Grand Canyon University’s 2018 decision to try to return to “its historical status as a nonprofit institution,” a move that would have granted the Christian university tax-exemptions, as well as access to federal funds, according to Fox News

In 2019, the Department of Education rejected Grand Canyon University’s attempt to gain nonprofit status, despite “GCU’s nonprofit approvals from the State of Arizona, the Internal Revenue Service, the Arizona Board for Private Postsecondary Education and the Higher Learning Commission.”

The Ninth Circuit determined that the Department of Education “exceeded the authority granted to it under the Higher Education Act” when it shut down Grand Canyon University’s attempt to become a nonprofit, as related by the school. 

“America’s founders ensured sufficient checks and balances were in place between the legislative, judicial and executive branches of government to prevent any one entity or body from gaining too much power. What we have seen in several recent actions . . . is [Congress’s and the Supreme Court’s] intent to curtail overreach of the administrative state and to keep agencies accountable to governing law,” Grand Canyon University wrote. 

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In April, Secretary of Education Miguel Cardona said that the Department of Education wishes to “shut down” Grand Canyon University as part of a campaign to “crack down” on the university. Grand Canyon University responded to his comments at the time, calling them “inflammatory” and accusing him of a “deeply held bias against GCU.”

Brian Mueller, Grand Canyon University president, spoke to Fox News Digital regarding the Ninth Circuit’s ruling, saying: “We saw it coming because of how the hearing went. And it was a 3-judge panel. It was a unanimous decision. People try to make something political out of everything.”

A Grand Canyon University spokesperson told Campus Reform that the Department of Education’s obstruction was “unprecedented,” “as they have always deferred to the IRS on such matters.” 

”Every objective third party that has examined the same set of facts has disagreed with ED’s [the Department of Education’s] false claims,” he added “We are hopeful that the Department will act in good faith and render a quick decision recognizing GCU’s lawful nonprofit status.”

Speaking about President-elect Donald Trump’s recent election victory, he added that “we look forward to an administration that, rather than using federal agencies to harass universities to which they are ideologically opposed, will reduce bureaucracy while applying regulations fairly and equitably.”

”We are also confident a Trump administration will have an appreciation for the significant accomplishments GCU has achieved to positively address the challenges that are facing higher education,” he concluded.