A federal appeals court ruled Friday that a provision in President Donald Trump’s signature tax and domestic policy legislation reducing Medicaid funding to certain Planned Parenthood entities that perform abortions does not amount to unconstitutional punishment.
The decision came from the United States Court of Appeals for the First Circuit, based in Boston, which overturned a preliminary injunction issued in July by U.S. District Judge Indira Talwani. Talwani had previously determined that the law was likely unconstitutional because it appeared to single out Planned Parenthood health centers for adverse treatment. The appeals court had already allowed the provision to take effect in September while reviewing the Trump administration’s challenge to Talwani’s earlier ruling. With Friday’s decision, the court concluded that the contested measure does not violate constitutional protections as claimed by the plaintiffs.
Planned Parenthood officials have stated that the policy has had significant operational consequences. According to the organization, at least 20 health centers have closed since the measure was signed into law in July. Legal challenges to the policy are continuing. Judge Talwani has also blocked enforcement of the law in a separate case filed by 22 Democratic-led states and the District of Columbia. However, the appeals court has temporarily stayed that ruling while it considers whether the injunction should remain in place. In response to the latest decision, Alexis McGill Johnson, president of the Planned Parenthood Federation of America, criticized the ruling, arguing that it could limit access to healthcare services for vulnerable populations. In a statement, Johnson said the decision permits the administration to pursue policies that could place significant financial strain on Planned Parenthood health centers. The legal dispute centers on a provision of the One Big Beautiful Bill Act, approved by the Republican-controlled Congress. The measure bars Medicaid funding for nonprofit organizations that provide family planning services if they also perform abortions and received more than $800,000 in Medicaid funding during the 2023 fiscal year.
