A federal judge will hear arguments Wednesday about whether a spending law passed in July that ended Medicaid reimbursements for Planned Parenthood can remain in effect while legal challenges continue.
President Donald Trump’s tax and spending cut bill targets organizations that provide abortions and receive more than $800,000 a year in Medicaid reimbursements. Planned Parenthood has argued the law violates the Constitution, while anti-abortion activists have applauded the legislation.
An appeals court ruled that the law could go into effect in September while a lower court considered Planned Parenthood’s claims.
In a report released Wednesday morning ahead of the hearing, Planned Parenthood stated that the legislation cost $45 million in September alone, as clinics across the country had to pay for treatment for Medicaid patients out of pocket, an unsustainable rate. Nearly half of Planned Parenthood’s patients rely on Medicaid for healthcare services, excluding abortions, which the federal insurance program does not cover.
Legal fight
Planned Parenthood Federation of America and its member organizations in Massachusetts and Utah, along with a major medical provider in Maine, filed lawsuits against Health and Human Services Secretary Robert F. Kennedy Jr. in July. The Maine provider has been forced to stop its primary care services while the lawsuit progresses through the courts.
Amidst the ongoing legal turmoil, seven states—California, Colorado, Massachusetts, New Jersey, New Mexico, New York and Washington—have allocated state funds to compensate for the lost federal Medicaid reimbursements, covering approximately $200 million of the $700 million Planned Parenthood spends annually on Medicaid patients.
Due to the shortfall, some clinics will require Medicaid patients to pay out of pocket, while others may close entirely, adding to the 20 Planned Parenthood-affiliated clinics that have shut down since July, and a total of 50 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,” said Planned Parenthood President and CEO Alexis McGill Johnson.
Abortion at the heart of the debate
Carol Tobias, president of the National Right to Life Committee, stated that Trump’s legislation is a step in the right direction. Despite federal tax dollars not being used directly for abortions, she argues that taxpayers are inadvertently funding abortion services, which many find morally objectionable. She suggested that if Planned Parenthood prioritizes serving vulnerable populations, they could stop offering abortions.
In response, Planned Parenthood’s president reiterated the organization's commitment to providing abortions, insisting, “The government should not play a role in determining any pregnancy outcomes.”
A range of services hit
As the country’s largest abortion provider, Planned Parenthood reports that abortions only constituted 4% of its total medical services in 2024. The majority of services, about 80%, are focused on testing for sexually transmitted infections and contraception, with the remaining 15% involving cancer screenings, primary care, and behavioral health services.
Jenna Tosh, CEO of Planned Parenthood California Central Coast, highlighted that Medicaid cuts threaten both abortion and non-abortion medical care, emphasizing, “Many of our patients, we are their primary provider of health care.” She warned that this significantly undermines the healthcare safety net for the most vulnerable populations.
