Jerry Falwell Jr.’s $15 million settlement with Liberty University following his sex scandal resignation is igniting debate over ethics, donations, and religious accountability.
At a Glance
- Liberty University agreed to pay Jerry Falwell Jr. $15 million following his 2020 resignation.
- The deal includes $5.5 million to resolve litigation and $9.7 million for retirement benefits.
- Falwell reimbursed Liberty $440,000 for disputed personal expenses.
- The scandal involved Falwell’s wife and a pool attendant, with claims of Falwell’s voyeurism.
- The university and Falwell pledged mutual reconciliation in the settlement.
Scandal, Resignation, and Repercussions
Liberty University’s tax filings have revealed that former President Jerry Falwell Jr. received a $15 million payout following his 2020 resignation amid a lurid sex scandal. The settlement includes $5.5 million to resolve legal disputes and nearly $10 million as part of a retirement package.
Falwell stepped down after allegations surfaced that his wife, Becki Falwell, had a years-long affair with Giancarlo Granda, a former pool attendant, who claimed Falwell watched the encounters from the room. The fallout from the allegations quickly made Falwell’s continued leadership untenable at the Christian university founded by his father, the late Rev. Jerry Falwell Sr.
Watch a report: Liberty University to Pay Falwell Jr. $15M Settlement.
Following his departure, Falwell sued the university, alleging defamation and wrongful termination. The legal standoff lasted two years and culminated in a sweeping settlement that ended all claims and defined the use of his father’s legacy within university branding.
Money, Morality, and a Nonprofit’s Mission
The size of the settlement has triggered widespread backlash—not just for the figure, but for its source. Liberty University is a nonprofit institution that relies heavily on tuition, alumni donations, and religious tax exemptions. Critics argue that using such funds to pay a disgraced leader undercuts Liberty’s religious mission and raises fundamental questions about transparency and stewardship.
On social media, backlash was swift. Journalist Darrel Rowland pointedly noted that “the money is coming from donations and student tuition,” while others questioned whether an organization preaching moral leadership should reward such misconduct.
Although the university has refused to comment, Falwell expressed his satisfaction with the outcome, saying he was “very pleased” with the terms. The settlement agreement also includes language about mutual forgiveness and protecting Liberty’s Christ-centered mission—language some critics see as ironic given the circumstances.
Legacy, Reconciliation, and the Road Ahead
The agreement emphasized preserving the image and legacy of Jerry Falwell Sr., whose name remains a potent symbol within evangelical circles. Falwell Jr. led Liberty for over a decade and became a prominent political figure after his early endorsement of Donald Trump in 2016.
Despite the scandal, the final settlement seeks to frame the resolution as a reconciliation. Both parties agreed to avoid further public disputes, uphold the university’s religious values, and maintain civility in referencing one another.
The payout has renewed scrutiny of how religious institutions manage internal misconduct, particularly when leaders fail to uphold their own standards. For many Liberty alumni and donors, the settlement feels like a betrayal of promised values. Whether Liberty can restore its reputation or if this payout will tarnish it remains uncertain, especially since its former leader is leaving with millions rather than disgrace.
