Planned Parenthood Loses Medicaid Funding in 22 States

Federal Judges Side With Trump Administration

On December 30, 2025, a federal appeals court handed the Trump administration a major win in its fight to defund Planned Parenthood.

The 1st U.S. Circuit Court of Appeals in Boston overturned an injunction that had blocked a provision in the One Big Beautiful Bill Act from taking effect.

The ruling allows the administration to cut Medicaid funding to Planned Parenthood clinics in 22 Democratic-led states and Washington, D.C.

Nearly 50 clinics have already closed this year, and the organization warns that number could climb much higher.

The Law Targets Large Clinics

The One Big Beautiful Bill Act bars Medicaid payments to large nonprofit health clinics that provide abortions and received more than $800,000 in federal funding during 2023.

While the law does not name Planned Parenthood directly, the criteria apply almost exclusively to its affiliates.

Federal law already prohibits Medicaid from covering most abortions.

This provision goes further by blocking reimbursement for any service at qualifying clinics, including cancer screenings, STI testing, and contraception.

Trump Signs Bill on July 4

President Trump signed the sweeping tax and spending legislation on Independence Day 2025.

Unlike most provisions in the bill, which take effect over time, the Planned Parenthood funding cut kicked in immediately.

The law defines clinics as prohibited entities based on their status as of October 1, 2025, creating confusion about enforcement timelines.

Planned Parenthood filed its first lawsuit against the administration three days after the bill became law.

22 States File Suit Together

On July 29, 2025, Democratic attorneys general from 22 states and Washington, DC., sued the Trump administration in federal court in Massachusetts.

California, Connecticut, and New York led the coalition.

The lawsuit argued that the law was unconstitutionally vague and violated states’ rights under the Spending Clause by imposing conditions they could not have anticipated when their Medicaid plans were approved.

Pennsylvania’s governor also joined the suit.

Judge Blocks the Law Twice

U.S. District Judge Indira Talwani, an Obama appointee, ruled in favor of Planned Parenthood twice. She first issued a preliminary injunction in July blocking enforcement for Planned Parenthood affiliates.

On December 2, she granted a second injunction based on the states’ lawsuit, ruling the law likely imposed an unconstitutional retroactive condition on Medicaid participation.

Both times, the appeals court stepped in to reverse her decisions.

Appeals Court Sides With Administration

The three-judge panel on the 1st Circuit, all appointed by Democratic presidents, disagreed with Talwani’s reasoning.

The judges ruled that the Trump administration would likely prevail on appeal because the law was unambiguous and Congress had clear authority to change Medicaid funding rules.

The December 30 decision marked the second time in less than three weeks that the appeals court overturned one of Talwani’s orders protecting Planned Parenthood.

Nearly 50 Clinics Shut Down in 2025

Since January 2025, close to 50 Planned Parenthood health centers have closed across the country. About 20 of those closures came after the law took effect in July.

Clinics in California, Michigan, Ohio, Indiana, and Vermont have shut their doors, citing financial pressures from lost Medicaid revenue.

In Michigan, four clinics closed, including the only one in the rural Upper Peninsula. The nearest alternative is now a five-hour drive away.

Up to 200 More Could Close

Planned Parenthood warns that up to 200 of its roughly 600 health centers are at risk if the funding cut remains in effect. The organization says more than 1.1 million patients could lose access to care.

About half of all Planned Parenthood patients use Medicaid for services other than abortion, including contraception, pregnancy tests, and screenings for cancer and sexually transmitted infections.

The closures would hit hardest in states where abortion is still legal.

Rural Areas Face the Biggest Gaps

About 60% of the health centers at risk of closure are located in medically underserved areas, rural communities, or regions with primary care shortages.

Research from the Guttmacher Institute found that federally qualified health centers would need to increase their patient loads by 56% or more to absorb displaced patients.

In nine states, including Minnesota, Oregon, and Washington, other clinics would need to more than double their capacity to fill the gap.

Some States Commit Their Own Money

At least eight states have announced plans to replace lost federal funding with state dollars. Washington Governor Bob Ferguson committed to covering more than $11 million in lost Medicaid reimbursements.

Connecticut allocated $8. 5 million, and Massachusetts pledged $2 million. Colorado, which stands to lose care for about 16,000 patients, is also exploring state funding options.

But advocates say state budgets cannot fully replace federal dollars long-term.

The Fight Continues in Court

The legal battle is far from over. Briefings in the case are expected in late 2025, with oral arguments to follow.

Planned Parenthood and the coalition of states have vowed to keep fighting.

California Attorney General Rob Bonta called the appeals court ruling “disappointing” but said his office remains committed to holding the administration accountable.

For now, the one-year funding ban stays in effect while the courts work through the remaining challenges.

This article was created with AI assistance and human editing.

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