Federal Appeals Court Allows Temporary Medicaid Defunding of Planned Parenthood

A federal appeals court has allowed the Trump administration to proceed with a provision in the One Big Beautiful Bill that stops Medicaid reimbursements to abortion providers, including Planned Parenthood, overriding a lower court injunction. The provision targets providers receiving over $800,000 annually in Medicaid funds who also provide abortion services, and is intended to last one year. The Trump administration argues that taxpayer funds should not subsidize abortion providers, a position supported by the appeals court despite opposition from Planned Parenthood and a district judge who cited potential adverse health consequences. The appeals court panel, composed of judges appointed by President Joe Biden, issued a stay on the preliminary injunctions blocking the funding cut while the case continues through the courts. Planned Parenthood’s CEO Alexis McGill Johnson condemned the ruling as a blow to patients' access to essential healthcare and vowed to continue fighting the law in court. The case highlights ongoing legal battles over abortion funding restrictions and Medicaid reimbursement policies under President Trump's administration.