PROVIDENCE, R.I. (AP) – Planned Parenthood has officially decided to drop its legal challenge against the Trump administration regarding the termination of Medicaid funding for its abortion providers nationwide. This decision comes after a prolonged legal battle that began in July, in which Planned Parenthood and its attorneys sought to block a specific provision of President Donald Trump’s tax bill. They argued that this provision disproportionately targeted their clinics, thereby limiting health care options for vulnerable patients.
In December, a federal appeals court upheld the Trump administration's right to continue withholding Medicaid funding from Planned Parenthood and similar health centers. A separate lawsuit, initiated by a coalition of predominantly Democratic states, also faced setbacks in January, although that particular legal challenge continues to progress through the courts. In October, a third lawsuit filed in Maine by a network of medical clinics affected by the Trump tax bill was voluntarily dismissed, contributing to a challenging legal landscape for Planned Parenthood.
Late on a Friday, Planned Parenthood filed to voluntarily dismiss its lawsuit. An inquiry directed to Health and Human Services Secretary Robert F. Kennedy Jr., who was named as a plaintiff, was sent on the following Monday, seeking further comment. In a statement regarding the dismissal, Planned Parenthood mentioned, “The goal of this lawsuit has always been to help Planned Parenthood patients get the care they deserve from their trusted provider. Based on the 1st Circuit's decision, it is clear that this lawsuit is no longer the best way to accomplish that goal.”
The specific tax provision in question was part of Trump's tax reform legislation, which stipulates that Medicaid payments could be terminated for providers primarily offering family planning services — which include contraception, abortion, and pregnancy tests — if they received more than $800,000 in Medicaid funding within a given year. Although Planned Parenthood was not explicitly mentioned in the statute itself, the organization has asserted that the legislation was designed to adversely impact their nearly 600 health centers operating across 48 states.
Medicaid serves as a crucial government health care program for millions of low-income and disabled Americans. While federal law prohibits the use of taxpayer money for most abortion services, many conservatives have long claimed that facilities like Planned Parenthood utilize Medicaid funds from other health services to subsidize abortion care. Notably, nearly half of Planned Parenthood’s patients depend on Medicaid for their health care needs.
According to statements made by Planned Parenthood, they have experienced significant operational difficulties due to the cuts, with 23 health clinics forced to close in the wake of the tax bill that went into effect on July 4, 2023. In total, over 50 clinics have shut their doors across 18 states, with the majority of closures occurring in the Midwest region of the United States.
Planned Parenthood Federation of America President and CEO, Alexis McGill Johnson, emphasized the organization's ongoing commitment to patient care in response to the legal and political challenges faced. She stated, “President Trump and his allies in Congress have weaponized the federal government to target Planned Parenthood at the expense of patients — stripping people of the care they rely on. Through every attack, Planned Parenthood has never lost sight of its focus: ensuring patients can get the care they need from the provider they trust. That will never change.”
Kimberlee Kruesi, The Associated Press
