The university was founded in 1991 by Major James P. Etter (USMC, retired) as American Military University. In 2016, the university was listed as tied for 58th place in
U.S. News & World Report ranking of online bachelor's degree Programs. In July 2016, long-time president
Wallace E. Boston was succeeded as APUS president by former executive vice president and provost Karan Powell, while continuing his leadership role as CEO of APEI to provide strategic and leadership support to APUS and other APEI ventures. In September 2016, Vernon Smith was named senior vice president and provost, succeeding Powell. In September 2017, Boston was reappointed APUS president. In September 2019, Angela Selden was named CEO of APEI, succeeding Boston as head of the parent company. APUS had a partnership with
Walmart from 2010 to 2019. Walmart spent $50 million on the "Lifelong Learning Program, chiefly for tuition grants for Walmart workers to 'further develop a pipeline' for leaders". From 2013 to 2017, APUS' enrollment declined from 127,000 to 84,000 students. In 2018, APUS paid the state of Massachusetts $270,000 after an investigation by the state's attorney general into allegations that it violated the state's for-profit and occupational school regulations, which are aimed at protecting students from the deceptive and unfair business practices by for-profit schools. In July 2020, Wade Dyke, former president of
Kaplan University was named president of APUS; he was replaced by long-serving APUS board chair Dr. Katherine Zatz on November 4, 2021, who was the acting president until Nuno Fernandes took over on September 1, 2022. In October 2020, parent company APEI began the process of acquiring
Rasmussen College, later named Rasmussen University. Under the
90–10 rule, schools are required to get funds that are not federal funds. In 2021, Congress closed the loophole in the 90–10 rule that previously excluded
DOD Tuition Assistance funds and
GI Bill funds. The Veterans Education Project reported that American Public University System would be the largest for-profit college chain negatively affected by the modified rule. == Accreditation ==