Court lifts block on defunding of Planned Parenthood as lawsuit proceeds

A federal appeals court ruled on Thursday that the federal government can defund Planned Parenthood of Medicaid payments as a lawsuit continues in court.

Key Takeaways:

• The First Circuit Court of Appeals has ruled that Planned Parenthood can be defunded of federal Medicaid funding, as a lawsuit against the 'Big Beautiful Bill' defunding provision proceeds in the courts.

• The federal spending bill included a provision to strip Planned Parenthood of federal Medicaid funding for one year, and Planned Parenthood immediately filed a lawsuit to block it.

• A Boston federal court blocked the provision temporarily, and that injunction has now been lifted.

The Details:

According to Reuters, the First Circuit Court of Appeals has agreed to allow the Medicaid defunding of Planned Parenthood to go into effect while a lawsuit filed by Planned Parenthood proceeds. The order reads:

Notwithstanding the contrary conclusion reached by the district court after its careful consideration of the matter, we conclude that defendants have met their burden to show their entitlement to a stay of the preliminary injunctions pending the disposition of their appeals of the same....

The July 21, 2025 preliminary injunction and the July 28, 2025 preliminary injunction are hereby stayed pending disposition of the respective appeals. The separate motions by the State of Louisiana and the American Center for Law & Justice for leave to file an amicus brief also are GRANTED and the briefs are accepted for filing as of this date.

In doing so, the Court of Appeals has opened the door for the implementation of the provision of the federal spending bill that blocked Planned Parenthood from receiving federal Medicaid funding for one year. It had been put on hold in July by Boston U.S. District Judge Indira Talwani, an Obama appointee.

The U.S. Department of Justice argued to the First Circuit that in blocking the provision, Talwani overrode the judgment of legislators, adding that Talwani's argument that the provision is unconstitutional was built on "flimsy" reasoning.

The Backstory:

The provision was part of the 'Big Beautiful Bill,' and sought to end federal Medicaid reimbursements to the abortion corporation. After the bill passed, Planned Parenthood sued the Trump administration, claiming that losing the funding would have "catastrophic consequences."

“We’re suing the Trump administration over this targeted attack on Planned Parenthood health centers and the patients who rely on them for care,” Planned Parenthood president and CEO Alexis McGill Johnson said at the time. “This case is about making sure that patients who use Medicaid as their insurance to get birth control, cancer screenings, and STI testing and treatment can continue to do so at their local Planned Parenthood health center, and we will make that clear in court.”

The Bottom Line:

Planned Parenthood is not a legitimate health care provider that Americans rely on as it claims to be. It only serves about 2% of American women of reproductive age, and according to its annual reports, its health care services have plummeted over the years, while abortions have soared to record highs. Yet its annual report boasts that it received $792 million in government funding in one year, including Medicaid funding.