Court clears Trump-backed Medicaid restriction nationwide

On Tuesday, the U.S. appeals court paved the way for the Trump administration to withdraw Medicaid funding from Planned Parenthood health centers across 22 states and Washington, D.C. This decision temporarily suspends a lower-court injunction that had blocked the enforcement of this restriction.

A three-judge panel from the Boston-based First Circuit Court of Appeals has issued a decision that temporarily halts an order from the United States. District Judge Indira Talwani. This order had prevented the administration from enforcing a provision that prohibits Medicaid reimbursements to specific providers.

The ruling represents the most recent advancement in a protracted legal battle concerning the measure, which Republicans incorporated into the extensive tax-and-spending legislation referred to as the One Big Beautiful Bill Act. The regulation bars Medicaid payments to tax-exempt entities offering family planning and reproductive health services if they also conduct abortions and have received over $800,000 in Medicaid funding in the fiscal year 2023.

A spokesperson for California Attorney General Rob Bonta, a Democrat who co-led the challenge alongside attorneys general from Connecticut and New York, expressed disappointment in the ruling but reaffirmed the states' commitment to ensuring that vulnerable Californians have access to necessary healthcare.

There was no response from Planned Parenthood regarding the request for comment.

The administration contends that Congress possesses the power to establish conditions for participation in Medicaid, the federal-state insurance initiative designed for low-income Americans. A panel from the First Circuit indicated that the government has likely established its case for appeal by proving that the law is clear and that Congress possesses the authority to implement such modifications.

Talwani had earlier determined that the states were probably poised to argue that the restriction was unconstitutional, as it retroactively modified the terms of Medicaid participation following approval by the Centers for Medicare and Medicaid Services. The law did not clearly inform states about the entities it covered.

According to Planned Parenthood, the provision was designed specifically with the organization in focus and has already led to the closure of at least 20 clinics since President Donald Trump enacted the law in July. The organization cautions that up to 200 centers may face closure, particularly in states where abortion remains legal, significantly restricting access to reproductive healthcare.

Current federal legislation prohibits the allocation of federal funds for the majority of abortion procedures. According to Planned Parenthood, Medicaid reimbursements play a crucial role in funding various services, such as STI testing, cancer screenings, and contraception. In the year 2024, the organization documented over 1.5 million patient visits related to Medicaid.