Court Allows Cuts to Planned Parenthood's Medicaid Funding

An appeals court on Tuesday allowed President Donald Trump's administration to enforce in a collection of Democrat-led states a provision of his signature tax and domestic policy bill that deprives Planned Parenthood health centers of Medicaid funding if they perform abortions.

At the administration's ‍request, a three-judge panel of ‍the Boston-based 1st U.S. Circuit Court of Appeals put on hold an injunction issued by a lower-court judge who barred the law from being enforced in 22 states ⁠and the District of Columbia.

It marked the latest instance of the appeals court lifting an order by U.S. District Judge Indira Talwani preventing the law ​from being implemented, after the 1st Circuit on Dec. 12 overturned a ruling she issued in another case brought by Planned Parenthood declaring the law unconstitutional.

A provision in the One ‍Big Beautiful Bill Act, passed by the Republican-led Congress, bars Medicaid funding for tax-exempt organizations that ⁠provide family planning and reproductive health services if they perform abortions and received more than $800,000 in Medicaid funds in fiscal 2023.

Planned Parenthood says the law was passed with it in mind and is already having devastating effects, resulting in ⁠at least 20 of its health ​centers closing since Trump ⁠signed the measure into law in July.

After the 1st Circuit earlier this year paused Talwani's initial injunction in ‍Planned Parenthood's favor, a group of state attorneys general, all Democrats, asked her to block the law's enforcement again ‌but on different grounds.

The judge, who was appointed by President Barack Obama, agreed to do so on Dec. 2, saying the states were likely to succeed in ⁠establishing that ​the law constitutes an unconstitutional ‍retroactive condition on their participation in the Medicaid healthcare program.

But Tuesday's 1st Circuit panel, made up only of judges appointed by Democrats, ‍said the Trump administration had demonstrated it was likely to prevail on the merits when its appeal is ultimately heard.