Planned Parenthood Battles in Court to Retain Medicaid Funding

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Planned Parenthood Federation of America is challenging a controversial federal provision that could cut off critical Medicaid funding, a move that could reduce access to reproductive and preventive health care for thousands of low-income Americans.

Attorneys representing Planned Parenthood clinics argued in a Boston federal court on Friday that a provision buried within former President Donald Trump’s tax law unfairly targets abortion providers by disqualifying them from Medicaid reimbursements. Attorneys representing Planned Parenthood clinics argued in a Boston federal court on Friday that a provision in recent federal health policy changes unfairly targets abortion providers by disqualifying them from Medicaid reimbursements. The restriction is not part of President Donald Trump’s tax law but stems from updated federal funding guidelines introduced in 2025 The clinics contend that the measure, while not naming the organisation directly, is designed to impact its operations nationwide. Planned Parenthood operates nearly 600 centres across 48 states and received over $800,000 in Medicaid funding in 2023 alone. Planned Parenthood operates nearly 600 centres across 48 states and received over $500 million in Medicaid reimbursements in 2023.

The disputed provision went into effect on July 4 and would block federal payments to providers that primarily offer services like contraception, abortion, and pregnancy testing. The disputed provision went into effect on July 4 and would block federal payments to providers that are affiliated with entities offering abortion services, even if the specific clinics receiving Medicaid funds do not perform abortions. However, critics argue this change disproportionately affects vulnerable patients who rely on government-funded health programs. Medicaid, formally known as the Medical Assistance Program, provides health care coverage to millions of low-income and disabled Americans. Nearly half of Planned Parenthood’s patients depend on it for care.

The lawsuit, filed against U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., has so far resulted in a temporary restraining order issued by U.S. District Judge Indira Talwani. The lawsuit, filed against U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra, has so far resulted in a temporary restraining order issued by U.S. District Judge Indira Talwani. The injunction is set to expire on July 21, when the judge will decide whether to block the cuts while the legal challenge unfolds.

Judge Talwani pressed federal attorneys for clarity on what constitutes an “affiliation” under the new provision, questioning whether a clinic could retain funding by ending abortion services or if it would need to sever all organisational ties to Planned Parenthood entirely. HHS attorney Emily Hall responded that more time is needed to fully interpret the law, citing incomplete information on Planned Parenthood’s corporate structure.

The situation intensified this week when Planned Parenthood of Southwest Ohio Region announced the closure of two health centres due to ongoing financial pressure. “We took every possible step to keep these centres open, but the devastating impact of state and federal political attacks has forced us into this very difficult position,” said Nan Whaley, the group’s president and CEO.

While the organisation continues its legal fight, many warn that further funding disruptions could have long-term consequences on access to preventive services such as birth control, testing for sexually transmitted infections, and general wellness exams, particularly for underserved communities.