Federal Appeals Court Allows Halt to Medicaid Funding for Planned Parenthood
BOSTON, Mass. — A federal appellate court on Tuesday reversed a lower court’s injunction that had prevented the Trump administration from cutting Medicaid funding to Planned Parenthood, the nation’s largest abortion services provider. The First Circuit Court of Appeals ruled that the administration’s actions, mandated by the One Big Beautiful Bill Act (OBBBA), fall within Congress’s authority and are not ambiguous, effectively allowing the funding restrictions to proceed.
The decision came from a three-judge panel in Boston, which lifted the block imposed by U.S. District Court Judge Indira Talwani of Massachusetts. Talwani had sided with attorneys general from 22 states and the District of Columbia, who challenged the OBBBA provision that eliminated Medicaid funding for tax-exempt abortion providers receiving more than $800,000 in Medicaid payments in 2023. Leading the plaintiff states were California, New York, and Connecticut.
California Attorney General Rob Bonta’s office expressed disappointment with the ruling but affirmed that the state would continue efforts to ensure vulnerable residents have access to necessary healthcare. Officials from Planned Parenthood warned that the funding cut has already forced the closure of 20 centers since the law took effect in July and could lead to the shutdown of up to 200 more facilities, particularly in states where abortion services are legally protected.
Judge Talwani had previously ruled on December 2 that the plaintiff states were likely to succeed in arguing that the OBBBA unfairly targeted Planned Parenthood with a vague and retroactive restriction, interfering with Medicaid programs designed to assist low-income families. She noted that the Centers for Medicare and Medicaid Services had approved the Medicaid plans for the affected states, and the law’s sudden restrictions were unexpected.
However, the appellate court panel disagreed, stating that Congress possesses the authority to enact such funding changes and that the law’s language was sufficiently clear. This ruling suggests the Trump administration is likely to prevail on appeal. Notably, both Talwani and the appellate judges were appointed by Democratic presidents.
This ruling follows an earlier appellate decision that overturned a prior favorable ruling for Planned Parenthood and the plaintiff states. That lawsuit contended that the OBBBA violated constitutional protections by punishing Planned Parenthood for its political views.
Planned Parenthood operates approximately 600 facilities nationwide, serving over a million individuals with abortion and reproductive health services. The funding dispute highlights the ongoing legal and political battles surrounding abortion access and Medicaid funding in the United States.
For more information on Medicaid policies and federal court rulings, see the Centers for Medicare & Medicaid Services and the United States Courts websites. Updates on state attorney general actions can be found at the National Association of Attorneys General, and Planned Parenthood’s official statements are available at Planned Parenthood Federation of America.
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