Federal Appeals Court Greenlights Trump Administration Defunding Move Against Planned Parenthood, Sparking Fears of Clinic Closures Nationwide

A Planned Parenthood sign is displayed on the outside of the clinic. (AP Photo)

Boston, MA – September 11, 2025: In a swift and unanimous ruling that hands a significant victory to the Trump administration, the 1st U.S. Circuit Court of Appeals on Thursday suspended a lower court's nationwide block on a controversial provision in President Donald Trump's sweeping tax and spending overhaul, allowing the government to immediately halt Medicaid reimbursements to Planned Parenthood and similar providers. The decision, issued by a panel of judges all appointed by former President Joe Biden, thrusts the organization's 600 health centers into financial peril, potentially shuttering up to 200 facilities in 24 states and leaving over 1.1 million low-income patients scrambling for alternatives in reproductive and primary care.

The provision, embedded in the "One Big Beautiful Bill Act" signed into law in July, mandates a one-year freeze on federal Medicaid payments to any tax-exempt health organization that performs abortions and received more than $800,000 in such funding in 2023. While the longstanding Hyde Amendment already bars Medicaid dollars from directly financing abortions, this measure extends the cutoff to all reimbursable services—like birth control, Pap smears, STI screenings, and pregnancy tests—provided by qualifying entities. Critics, including Planned Parenthood, argue it effectively targets the nonprofit for its legal abortion services, violating constitutional protections against bills of attainder and freedom of association.

U.S. District Judge Indira Talwani in Massachusetts had intervened decisively on July 28, issuing a preliminary injunction that preserved funding across the country after finding the law "likely unconstitutional" for punishing providers based on protected activities. Talwani emphasized that the policy disrupted essential non-abortion care without serving a compelling government interest, noting its potential to force affiliates not even offering abortions to sever ties with the parent group. But the appeals panel—Judges Gustavo A. Gelpí, Lara E. Montecalvo, and Seth R. Aframe—disagreed on the stay, ruling in an unsigned order that the administration met the threshold to pause the injunction pending full review. "Defendants have met their burden to show their entitlement to a stay," the court wrote, prioritizing congressional intent over immediate harms.

Justice Department lawyers, defending Health and Human Services Secretary Robert F. Kennedy Jr., framed the clause as a "generally applicable" policy reflecting democratic will: "Taxpayer funds should not be used to subsidize certain entities that practice abortion—conduct that many Americans find morally abhorrent." They contended Talwani overreached by second-guessing elected officials, citing the Supreme Court's stringent standards for striking down laws under the bill of attainder doctrine. The temporary lift takes effect at once, halting reimbursements that account for nearly half of Planned Parenthood's patient base and a substantial revenue stream.

The fallout has ignited fierce backlash from reproductive rights advocates. "With this decision, patients and providers are in limbo … all because the Trump administration and its backers want to attack Planned Parenthood and shut down health centers," fumed Planned Parenthood Federation of America President and CEO Alexis McGill Johnson in a fiery statement. Dominique Lee, head of the Planned Parenthood League of Massachusetts—one of the plaintiffs alongside Utah affiliates—vowed defiance: "While the Trump administration wants to rip away reproductive freedom, we’re here to say loud and clear: we will not back down." The group, which sued in July alleging "catastrophic" repercussions, plans an expedited appeal to the full circuit or directly to the Supreme Court, insisting the law discriminates against essential care for underserved communities.

This isn't the first skirmish in the post-Roe landscape. Republicans have long eyed defunding as a wedge issue, with the provision slipping through amid broader tax cuts and Medicaid tweaks in Trump's marquee legislation. A partial temporary block by Talwani in early July had bought initial breathing room, but Thursday's reversal amplifies the stakes. Beyond Planned Parenthood, it ensnares other nonprofits, such as a prominent Maine family planning outfit that joined the suit, underscoring the ripple effects on a program serving millions of poor and disabled Americans.

Proponents, including anti-abortion stalwarts in Congress, celebrated the ruling as fiscal prudence. White House spokesperson Karine Jean-Pierre echoed DOJ arguments, hailing it as upholding "the will of Congress to protect taxpayer dollars from subsidizing objectionable practices." Yet experts warn of dire public health consequences: rural "healthcare deserts" could widen, with low-income women of color—disproportionately served by Planned Parenthood—facing barriers to preventive services that avert costlier interventions down the line.

As the case barrels toward higher courts, the ruling lays bare the enduring partisan chasm over reproductive access. For Planned Parenthood's legions of patients, it's a stark reminder that policy battles can upend lives overnight. "This isn’t about abortion; it’s about blocking access to basic health services that save lives," a PPFA spokesperson told reporters outside the Boston courthouse. With appeals looming, the fight for funding—and the future of affordable care—remains far from resolved.