A federal judge will hear arguments Wednesday about the potential continuation of a spending law passed in July that terminated Medicaid reimbursements for Planned Parenthood amid ongoing legal challenges.
President Trump's recent tax and spending legislation specifically targets organizations providing abortions that collectively receive over $800,000 annually in Medicaid reimbursements. Planned Parenthood contends that the law is unconstitutional, while anti-abortion activists have expressed approval for the measure.
In September, an appeals court ruled that the legislation could be enacted while a lower court evaluated Planned Parenthood’s claims. According to a report released prior to the hearing, Planned Parenthood indicated that the legislation has already cost the organization $45 million in September, forcing clinics to financially cover treatment for Medicaid patients—a practice deemed unsustainable.
Almost half of Planned Parenthood’s patients rely on Medicaid for healthcare services unrelated to abortions, which are excluded from federal funding aimed at supporting low-income and disabled Americans.
Legal Fight
Planned Parenthood Federation of America, alongside affiliates in Massachusetts and Utah, as well as a significant medical provider in Maine, initiated legal actions against Secretary of Health and Human Services Robert F. Kennedy Jr. in July. The Maine provider has been compelled to halt primary care services as its case progresses in the courts.
Meanwhile, seven states—California, Colorado, Massachusetts, New Jersey, New Mexico, New York, and Washington—have allocated state funds to mitigate the loss of federal Medicaid reimbursements, covering approximately $200 million of the $700 million Planned Parenthood spends annually on Medicaid patients.
In response to the funding deficit, some clinics plan to charge Medicaid patients out of pocket, while others may close entirely. This follows the closure of over 20 Planned Parenthood-affiliated clinics since July, contributing to a total of 50 closures since the start of Trump’s second term.
“The consequence is for patients who are going to be forced to make impossible choices between essential services,” stated Planned Parenthood President and CEO Alexis McGill Johnson in an interview.
Abortion at the Heart of the Debate
Carol Tobias, president of the National Right to Life Committee, has characterized Trump’s legislation as a significant step forward. While federal tax dollars are not directly allocated to abortions, Tobias argues taxpayers still support abortion services indirectly, as Medicaid reimbursements assist organizations providing these services.
“To be forced to pay for that is just very objectionable,” she remarked, suggesting that Planned Parenthood could consider ceasing to offer abortions if they wish to maintain medical care for vulnerable populations.
In contrast, Planned Parenthood’s leadership reaffirmed their commitment to providing abortions. “The government should not dictate pregnancy outcomes,” Johnson emphasized.
A Range of Services Hit
While Planned Parenthood is the nation’s largest abortion provider, abortions accounted for just 4% of their total medical services in 2024, according to their annual report. Services such as testing for sexually transmitted infections and contraception constitute around 80% of their offerings. The remaining 15% encompass cancer screenings, primary care services, and behavioral health support.
Jenna Tosh, CEO of Planned Parenthood California Central Coast, stated in an interview that the Medicaid cuts jeopardize both abortion-related and non-abortion healthcare services. Approximately 70% of patients at Planned Parenthood California Central Coast depend on Medicaid for their healthcare needs. “For many of our patients, we are their primary healthcare provider. We are pulling at the very threads of the healthcare safety net for the most vulnerable populations,” Tosh remarked.
