Appeals court allows Planned Parenthood to be blocked from Medicaid funding

A federal appeals court has ruled that the law defunding Planned Parenthood abortion facilities of federal Medicaid funding can be enforced as the case moves forward in court.

Key Takeaways:

• A three-judge appeals court panel ruled that a law stripping Planned Parenthood of federal Medicaid funding can be enforced as the case continues.

• The ruling suspends a lower-court injunction blocking the law.

• The provision, part of the Big Beautiful Bill and signed on July 4, states that family planning organizations that commit abortions and received $800,000 or more in Medicaid funds in 2023 would lose that funding for one year.

The Backstory:

The law was part of the Big Beautiful Bill Act and said that family planning or reproductive health organizations that received more than $800,000 in Medicaid funds in 2023 and commit abortions could not receive that Medicaid funding for one year.

The bill was signed by President Trump on July 4, and Planned Parenthood immediately filed a lawsuit to block it. Judge Indira Talwani issued a temporary restraining order against the defunding just hours later. A federal appeals court lifted that restraining order, allowing the law to be enforced. Yet, another lawsuit filed by 22 Democratic states and D.C. also attempted to block the bill, and Talwani placed a temporary injunction on the defunding provision again.

The Details:

Now, a three-judge panel of the 1st U.S. Circuit Court of Appeals has suspended the lower-court injunction that had blocked the enforcement of the law. The First Circuit panel determined that the law can be enforced as the case moves ahead.

California Attorney General Rob Bonta called the ruling disappointing, but said that he is committed to "ensuring vulnerable Californians can access the healthcare they need." Bonta co-led the lawsuit with the attorneys general of New York and Connecticut.

The Bottom Line:

The First Circuit panel said the Trump administration proved it is likely to win on the case on appeal and determined that Congress was within its power to write such a law.