Clinic Closures Spark Legal Fight Over Federal Abortion Funding Ban

California Attorney General Rob Bonta, along with an alliance of 22 other states and the District of Columbia, has initiated a federal lawsuit against the Trump administration. The group contends that a new tax law unjustly deprives Planned Parenthood of Medicaid reimbursements, infringing upon constitutional rights and federal health regulations.

A lawsuit has been initiated in U.S. District Court in Massachusetts against the newly established “One Big Beautiful Bill Act,” which restricts Medicaid reimbursements to large nonprofit clinics that "primarily" offer abortion services. Despite existing federal law prohibiting direct funding for abortion services, opponents argue that the new regulation acts as a covert means to defund Planned Parenthood, particularly in states such as California, where abortion is still permitted.

Attorney General Bonta argues that the law lacks clarity, violates First Amendment rights, and compels states to deny Medicaid funding to providers based on services provided outside the Medicaid framework. Bonta stated that the measure infringes on due process and disregards federal mandates that require explicit notification regarding alterations to Medicaid funding.

“This issue extends beyond abortion—it encompasses the suppression of dissent and the erosion of public health access,” Bonta stated. Five Planned Parenthood clinics in California have shut down as a result of losing approximately $100 million in Medicaid reimbursements. Recent closures in Gilroy, Santa Cruz, Madera, San Mateo, and South San Francisco have resulted in more than 22,000 patients being left without care.

A distinct legal action initiated by Planned Parenthood Federation of America has resulted in a temporary ruling from U.S. District Judge Indira Talwani, mandating the reinstatement of Medicaid reimbursements as the litigation unfolds. The judge stated that interruptions in service might result in “negative health outcomes,” including unintended pregnancies and overlooked diagnoses of critical conditions.

In light of the recent ruling, officials from Planned Parenthood caution that the future of access to long-term care is still in question. “We will stand firm,” stated Andrew Adams of Planned Parenthood Mar Monte, which manages 30 clinics. “However, we require support to maintain our operations.”

A representative from the U.S. Department of Health and Human Services expressed strong opposition to the ruling, proposing that clinics involved in political advocacy should not be eligible for taxpayer funding.