A federal judge will hear arguments Wednesday regarding a contentious spending law enacted in July that ended Medicaid reimbursements for Planned Parenthood while legal challenges unfold.
President Trump's tax and spending bill specifically targets organizations providing abortions and receiving over $800,000 in Medicaid reimbursements, a move that has been met with praise from anti-abortion activists but criticized by Planned Parenthood, which claims the law is unconstitutional.
According to reports, the organization lost $45 million in funding in September alone as clinics catered to Medicaid patients out-of-pocket due to the cuts. Nearly half of Planned Parenthood’s patients depend on Medicaid for access to essential healthcare services, which, prior to the law's passage, were already limited regarding abortion coverage.
Legal fight
In response to the law, Planned Parenthood Federation of America and its affiliates in several states—including Massachusetts and Utah—filed lawsuits against HHS Secretary Robert F. Kennedy Jr. The repercussions of this law have been particularly severe for a major medical provider in Maine, which was forced to halt primary care operations while awaiting legal resolution.
In an effort to offset the financial gaps, seven states have allocated state funds to cover the loss of federal Medicaid reimbursements, amounting to around $200 million, yet this still falls short of the $700 million Planned Parenthood spends annually on Medicaid patients, leading to service disruptions and clinic closures.
“Patients are now facing impossible choices when it comes to essential healthcare services,” noted Planned Parenthood President Alexis McGill Johnson.
Abortion at the heart of the debate
The discourse surrounding the legislation is heavily tied to abortion rights, with Carol Tobias, president of the National Right to Life Committee, arguing that federal tax dollars shouldn’t indirectly support abortion services. She challenged Planned Parenthood to cease abortion services if they wish to maintain their funding for other healthcare options.
Conversely, Johnson emphasized that government interference in determining pregnancy outcomes is unacceptable.
A range of services hit
While Planned Parenthood is known as the nation's leading abortion provider, only 4% of its total services in 2024 were abortions, according to their annual report. The organization's crucial roles in providing STI testing, contraception, cancer screenings, and primary care significantly outweigh abortion services, highlighting the broader impact of the Medicaid cuts.
“We serve as a primary health care provider for many patients,” said Jenna Tosh, CEO of Planned Parenthood California Central Coast. “These cuts jeopardize crucial medical care for our most vulnerable populations.”
