Planned Parenthood filed a federal lawsuit on Monday challenging a provision in the newly enacted One Big Beautiful Bill that bars the organization from receiving Medicaid reimbursements. Planned Parenthood alleges the funding cut is an unconstitutional effort to punish it for providing and advocating for abortion access. The funding cut applies to the organization for just one year.
The lawsuit, filed in the liberal US District Court in Washington, DC, claims the law’s defund provision unlawfully strips Medicaid funding from Planned Parenthood health centers nationwide, despite the fact that the organization does not use federal funds for abortion services, in compliance with long-standing federal law. The funds from American taxpayers allow Planned Parenthood to operate its centers and use other monies to provide abortion services.
“The prohibition specifically targets Planned Parenthood Federation of America and its member health care providers in order to punish them for lawful activity, namely advocating for and providing legal abortion access wholly outside the Medicaid program and without using any federal funds,” the organization wrote in the complaint.
Meanwhile, a federal judge has stopped Congress from defunding the abortion provider. Judge Indira Talwani of the United States District Court for the District of Massachusetts granted a temporary restraining order that was requested by Planned Parenthood on Monday.
The DC District lawsuit contends that by excluding Planned Parenthood from the Medicaid program, the federal government is effectively denying low-income patients their choice of health care provider, a right they say is protected under federal Medicaid law. However, between 25-33% of physicians in the United States do not accept new Medicaid patients, thus are refusing Medicaid funds.
For over four decades, federal law known as the Hyde Amendment has prohibited the use of taxpayer funds for abortions, except in cases of rape, incest, or to save the life of the mother.
Planned Parenthood argues that the new provision goes beyond this restriction, weaponizing the federal budget process to silence a specific provider and its political stance on abortion rights.
“The Defund Provision is a naked attempt to leverage the government’s spending power to attack and penalize Planned Parenthood and impermissibly single it out for unfavorable treatment,” the organization said.
The One Big Beautiful Bill, legislation championed by President Donald Trump and passed by Congress earlier this year, contains a range of conservative policy priorities, including immigration enforcement, tax reform, and defunding organizations linked to abortion services. Its Medicaid provision was among the most controversial, drawing sharp criticism from health care advocates and reproductive rights groups. Sen. Lisa Murkowski fought to keep the funding in place for Planned Parenthood, but ultimately voted for the bill even after the funding was stripped.
