Appeals Court Allows Trump Administration to Block Medicaid Funds to Planned Parenthood

On September 11, 2025, the First U.S. Circuit Court of Appeals ruled in favor of the Trump administration's ability to block Medicaid funding to Planned Parenthood while legal challenges continue. This decision allows the implementation of a provision from the One Big Beautiful Bill Act, which prohibits Medicaid reimbursements to organizations that provide abortions and receive more than $800,000 in federal funding annually. The ruling comes after a lower court had previously issued a preliminary injunction to prevent the funding cuts.

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Planned Parenthood, the largest abortion provider in the United States, has stated that the ruling will affect over 1.1 million patients who rely on Medicaid for essential health services. The organization has warned that nearly 200 of its health centers across 24 states are at risk of closure due to the funding cuts. Medicaid is a critical program that serves millions of low-income and disabled Americans, with nearly half of Planned Parenthood's patients depending on it for care.

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The legal battle began when Planned Parenthood filed a lawsuit against the Trump administration, arguing that the funding cuts were unconstitutional and specifically targeted the organization as punishment for providing abortions. U.S. District Judge Indira Talwani had previously ruled that the law likely violated the Constitution's "bill of attainder" clause, which prohibits legislative acts that inflict punishment without a trial. However, the appeals court's decision put this injunction on hold, allowing the administration to proceed with the funding cuts.

ReutersThe HillCNNAppeals court allows provision freezing Medicaid funding for Planned ParenthoodPBS News Hour

The U.S. Department of Justice argued that halting the funding was necessary, stating that "taxpayer funds should not be used to subsidize certain entities that practice abortion—conduct that many Americans find morally abhorrent." Planned Parenthood's President and CEO, Alexis McGill Johnson, expressed strong opposition to the ruling, stating, "Patients who rely on the essential health care that Planned Parenthood health centers provide... can’t plan for their futures, decide where they go for care, or control their lives, bodies, and futures."

CNN

Critics of the ruling, including Planned Parenthood and various health care advocates, argue that the cuts will have "catastrophic" consequences for women's health services. They contend that the law disproportionately targets organizations that provide comprehensive health care, including cancer screenings and STD testing, thereby limiting access to essential services for vulnerable populations.

The Hill

While the appeals court's decision allows the Trump administration to proceed with the funding cuts, the legal battle is ongoing, and the case may eventually reach the Supreme Court. The appeals court did not provide detailed reasoning for its decision, leaving some legal experts questioning the implications of the ruling on future cases involving similar funding restrictions.

CNN

The First Circuit will hear more substantive arguments regarding the legality of the funding cuts in the coming months. Planned Parenthood has vowed to continue its legal fight against the law, emphasizing its commitment to providing care despite the challenges posed by the ruling.

The Hill