A federal judge has issued a temporary restraining order halting the enforcement of a key provision in the “One Big Beautiful Bill Act,” signed into law by President Donald Trump on July 4, that would have blocked federal Medicaid reimbursements to abortion providers like Planned Parenthood. The move comes as a result of an ongoing lawsuit filed by Planned Parenthood Federation of America against the federal government.
The case stems from the administration’s effort to defund organizations that perform abortions by suspending Medicaid reimbursements for one year. While the legislation does not name Planned Parenthood explicitly, the organization claims it is the clear target. In the lawsuit, Planned Parenthood argues the law is unconstitutional and “denies Planned Parenthood equal protection under the law,” stating it has been singled out “because of its unique role in providing abortions and advocating for abortion rights and access across the country.”
On Tuesday, Judge Indira Talwani sided with Planned Parenthood’s request for temporary relief, ordering the government to continue Medicaid payments to the organization for at least the next 14 days while litigation proceeds. According to Planned Parenthood, the ruling was essential to prevent disruptions in care: “We thank Judge Talwani for acting quickly to block this unconstitutional law attacking Planned Parenthood providers and patients,” the organization said in a statement, claiming that staff had “been forced to turn away patients who use Medicaid to get basic sexual and reproductive health care.”
The Trump administration, however, defended the legislation as a commonsense move aligned with the majority of Americans’ views on abortion. In a statement provided to Catholic News Agency (CNA), a White House official explained, “The Trump administration is ending the forced use of federal taxpayer dollars to fund or promote elective abortion — a commonsense position that the overwhelming majority of Americans agree with.”
Katie Glenn Daniel, director of legal affairs at Susan B. Anthony Pro-Life America, sharply criticized the legal challenge, calling it “brazen defiance of elected leaders.” She told CNA, “Before the ink was even dry on President Trump’s One Big Beautiful Bill Act, abortion giant Planned Parenthood ran to court to protect their cash flow of over $2 million a day from American taxpayers, and an activist federal judge obliged by ordering the spigot turned back on.” She praised the Trump administration for “standing firm on principle” and expressed confidence that the policy will be upheld, stating, “We’re confident they will prevail and the abortion industry’s last-ditch money grab will fail.”
Planned Parenthood received nearly $800 million in taxpayer funding between July 2023 and June 2024, accounting for almost 40% of its total revenue, according to its most recent annual report. Much of this funding comes from Medicaid reimbursements for non-abortive services.
Under existing federal law, direct federal funding for abortions is restricted, but Medicaid reimbursements are still permitted for other health services at clinics that perform abortions. The new law seeks to sever this financial support entirely, at least temporarily, from organizations involved in abortion services.
The legal battle echoes a recent Supreme Court decision involving South Carolina’s decision to cut off state Medicaid funding for Planned Parenthood South Atlantic. In that case, two patients sued after being denied services, but the Court ruled 6–3 that they had no legal standing to bring the lawsuit. Unlike that case, the current federal lawsuit is being brought directly by Planned Parenthood, making the legal grounds different.
As the 14-day restraining order takes effect, both sides are preparing for what could be a lengthy legal dispute. Pro-life advocates hope the law will ultimately withstand judicial scrutiny and pave the way for permanent defunding of abortion providers. Meanwhile, Planned Parenthood continues to fight for the restoration of Medicaid funds, framing the law as a targeted attack on reproductive health access.
Sources: Catholic News Agency, Planned Parenthood Federation of America, U.S. District Court for the District of Massachusetts
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