A U.S. appeals court panel on Thursday allowed the Trump administration to block Medicaid payments to Planned Parenthood while legal challenges proceed, temporarily pausing a July federal judge’s nationwide order that had required clinics to continue receiving reimbursements.
The decision stems from a provision in the administration’s signature tax legislation that instructs the federal government to end Medicaid payments for one year to abortion providers that received more than $800,000 from Medicaid in 2023. The provision applies even to providers that also offer other medical services such as contraception, pregnancy tests and sexually transmitted disease testing. Medicaid is the government health program that serves millions of low-income and disabled Americans, and Planned Parenthood says nearly half of its patients rely on Medicaid.
The July ruling had required Planned Parenthood clinics nationwide to continue being reimbursed while the organization challenged the defunding provision in court. Planned Parenthood Federation of America and member organizations in Massachusetts and Utah filed the lawsuit in July against Health and Human Services Secretary Robert F. Kennedy Jr., arguing that the statute unlawfully singles out providers based on the services they provide and would harm patients’ access to care.
Dominique Lee, president and CEO of Planned Parenthood League of Massachusetts, said in a statement that the organization would continue its legal fight. "While the Trump administration wants to rip away reproductive freedom, we’re here to say loud and clear: we will not back down," Lee said. Planned Parenthood said the appeals court ruling means more than 1.1 million patients will be unable to use their Medicaid coverage at its health centers and that as many as 200 health centers could face closure.
The U.S. Department of Health and Human Services did not immediately respond to an online request for comment. Court documents show the administration sought the appeals panel’s intervention while it pursues the statutory change through the courts, arguing that the provision should be allowed to take effect as Congress directed.
Legal experts say the case will continue to move through the federal courts as both sides press their arguments over the statute's legality and its impact on health care access. The dispute highlights ongoing tensions between federal policy changes enacted in tax and budget legislation and litigation brought by providers and advocacy groups over reproductive and preventive health services.
Planned Parenthood is the nation’s largest provider of abortion services and a major provider of reproductive health care and sex education. The organization and its affiliates provide contraception, cancer screenings, pregnancy-related services and testing and treatment for sexually transmitted infections, in addition to abortion services. The group contends that cutting off Medicaid reimbursements would not only hinder access to abortion but would also limit access to a range of essential health services for low-income patients.
The appeals court’s temporary allowance to block Medicaid payments does not resolve the underlying legal questions, and the parties will continue to litigate the statute’s validity and the appropriate remedial relief. Meanwhile, health centers and patients confront immediate uncertainty about coverage, funding and the availability of services during the ongoing judicial process.