Overview
- The 1st Circuit put U.S. District Judge Indira Talwani’s Dec. 2 injunction on hold, allowing the administration to proceed with the funding cuts in 22 states and Washington, D.C.
- The panel said the government is likely to succeed on the merits and that the statute is not ambiguous, countering Talwani’s findings on Spending Clause notice and retroactivity.
- The provision, part of the One Big Beautiful Bill Act, withholds Medicaid reimbursements from tax‑exempt providers that perform abortions if they received more than $800,000 in Medicaid funds in FY2023.
- The measure is set to last one year, and multiple lawsuits continue after the appeals court also overturned a separate Talwani injunction in a related Planned Parenthood case on Dec. 12.
- Planned Parenthood reports at least 20 clinic closures since July as states move to replace lost funds, including Connecticut’s $8.5 million allocation, while Maine Family Planning ended primary care services and withdrew its suit.