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Appeals Court Lets Trump Enforce Medicaid Cutoff for Planned Parenthood in 22 States and D.C.

The stay permits enforcement of a one-year law denying reimbursements to tax‑exempt providers that perform abortions during the ongoing appeal.

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.