US Court of Appeals Allows Trump Administration to Strip Medicaid Funding from Planned Parenthood
On December 31, 2025, a three-judge panel of the US Court of Appeals for the First Circuit in Boston allowed the Trump administration to strip Medicaid funding from Planned Parenthood in 22 states and Washington, D.C., by staying an injunction.
The panel put on hold U.S. District Judge Indira Talwani's injunction that had blocked enforcement of a provision targeting Planned Parenthood.
This provision is part of the Republicans' One Big Beautiful Bill Act. It bars Medicaid funding for tax-exempt organizations providing family planning and reproductive health services if they perform abortions and had received more than $800,000 in Medicaid funds during the 2023 fiscal year.
The First Circuit panel ruled the law is not ambiguous and affirmed that Congress has the power to make changes affecting Medicaid participation.
Earlier, the same court had lifted a separate injunction in a Planned Parenthood case that had previously paused enforcement of the measure.
Advocates argue the measure effectively acts as a back-door abortion ban. It has been noted that the law could lead to the closure of up to 200 Planned Parenthood health centers, with about 20 already closed since the law was signed.
California Attorney General Rob Bonta, joined by Connecticut and New York, led the legal challenge, describing the ruling as disappointing but pledging to continue defending access to services. Planned Parenthood did not comment on the ruling.
