A federal appeals court ruled Tuesday that the Trump administration may continue withholding Medicaid funding from Planned Parenthood and other abortion providers while states challenge the cuts in court, delivering a setback to a coalition seeking to restore payments at health centers serving millions of low-income Americans.
The decision allows the restrictions to remain in effect as litigation in Massachusetts proceeds. Those cuts were enacted through legislation President Donald Trump signed in July that eliminated Medicaid reimbursement for Planned Parenthood and other abortion providers that received more than $800,000 in 2023.
The ruling is a setback for a coalition of 21 states and the District of Columbia seeking to restore payments that Planned Parenthood says nearly half its patients depend on for non-abortion care, including cancer screenings and birth control. Separately, a Maine clinic network that already shut down primary care services after losing funding withdrew its own lawsuit.
Massachusetts Cases
Two lawsuits were filed in Massachusetts — one by 21 states and the District of Columbia, another by Planned Parenthood itself. A federal judge issued separate preliminary injunctions in those cases, siding with Planned Parenthood in July and with the coalition of states in early December.
The appeals court overturned the Planned Parenthood injunction on Dec. 12 and placed the states’ injunction on hold Tuesday.
“Although we are disappointed in the court’s decision, we remain committed to holding the federal administration accountable and ensuring vulnerable Californians can access the health care they need,” California Attorney General Rob Bonta’s office said in a statement.
Connecticut Attorney General William Wong called the ruling a “disappointing setback” but said the legal process had a long way to go.
“This defunds essential, preventive healthcare, including cancer screenings, birth control, and testing and treatment of sexually transmitted infections,” Wong said. “We will keep fighting to protect access to essential healthcare and to keep partisan politics out of doctors’ offices.”
Maine Clinics End Lawsuit After Losing Funding
A separate lawsuit in Maine has been dismissed at the request of the clinics that filed it. Maine Family Planning, which operates 18 clinics across poor and rural parts of the state, shut down its primary care operations in October after losing Medicaid reimbursement.
A federal judge ruled against restoring the funding in August as the lawsuit proceeded. Earlier this month, the network notified the court it would not continue the litigation.
“As the Trump administration has dismantled the nation’s health care system, we have remained focused on delivering high quality care to our patients, particularly those across rural Maine,” said George Hill, Maine Family Planning’s chief executive officer. “Though our lawsuit will not continue, we are not wavering in our commitment to our patients and to advocating for the health care system that Mainers need and deserve.”
The Center for Reproductive Rights, which represented Maine Family Planning, said clinic leaders decided to focus their resources on treating patients rather than continuing the litigation.
States Move to Fill the Gap
At least eight states have directed state funds to replace the lost Medicaid payments to Planned Parenthood. Connecticut Gov. Ned Lamont recently announced $8.5 million for Planned Parenthood of Southern New England.
Wong said Tuesday’s ruling made that kind of state action “even more important.”
Planned Parenthood has said nearly half its patients rely on Medicaid for health care. Abortions are not covered by the federal Medicaid program, which serves millions of low-income and disabled Americans; the July legislation targets reimbursements for other services the clinics provide, such as contraception, cancer screenings, and testing and treatment for sexually transmitted infections.
Health and Human Services press secretary Emily Hilliard said the department does not comment on litigation but added, “We remain committed to protecting the integrity of Medicaid programs to ensure full compliance with the law.”