Federal Appeals Court Pauses Ruling Forcing Trump Administration to Fund Planned Parenthood

A federal appeals court on Monday issued a stay on a ruling that mandated the Trump administration to maintain Medicaid funding for Planned Parenthood and other abortion providers across 23 states, temporarily halting the lower-court order as the case progresses.

On December 8, the 1st U.S. Circuit Court of Appeals granted an administrative stay, effectively pausing the preliminary injunction issued by U.S. District Judge Indira Talwani on December 2. Talwani has prohibited the administration from implementing Section 71113 of the One Big Beautiful Bill Act, a measure enacted by Congress and signed by the president on July 4. This provision limits Medicaid funding to any “prohibited entity” that both offers abortions and has received over $800,000 in Medicaid support in 2023.

A coalition of states, led by New York Attorney General Letitia James, filed a lawsuit on July 29, contending that the provision violates the Spending Clause due to its lack of clear notice and ambiguity. Talwani agreed, saying that Section 71113 “does not give states clear notice” and imposes an “unconstitutional retroactive condition” on Medicaid participation, according to court records summarized by Reuters.

Talwani has granted a seven-day administrative stay of her order. The Trump administration swiftly filed an appeal, seeking a stay pending the appeal and an immediate extension to avert what it described as any disruption to the enforcement of a “duly enacted Act of Congress.”

The administration highlighted in its filing that the same court had earlier imposed a nationwide injunction against similar restrictions prior to the intervention of the 1st Circuit. The Trump administration claimed, “Despite this, the same district court has again stopped the enforcement of Section 71113,” saying that Congress has clearly explained the funding ban.

On December 8, the 1st Circuit approved the government's request to prolong the administrative stay and indicated it would make a decision “promptly” regarding the larger motion for a stay pending appeal. A three-judge panel made the decision, consisting of Chief Judge David Barron, an Obama appointee, alongside Judges Gustavo Gelpí and Lara Montecalvo, both nominated by President Joe Biden.

Planned Parenthood continues to face political and financial scrutiny amid the ongoing dispute. The latest annual report from the organization reveals that revenue surpassed $2 billion in 2024, alongside a record high of 402,200 abortions conducted, reflecting a 23 percent rise since 2013. The report simultaneously highlights significant drops in cancer screenings, breast exams, Pap tests, and prenatal services.

Pro-life advocates characterized the appellate ruling as an essential measure to maintain federal law. “The One Big Beautiful Bill Act is a federal law that has been passed by Congress and signed into law by the president,” stated Marjorie Dannenfelser, president of SBA Pro-Life America, following the district court ruling. Dannenfelser further noted that the recent closures of clinics illustrate what she described as a “failing business model”.