Trump administration sued by Planned Parenthood over Medicaid cuts

The Trump administration has been sued by Planned Parenthood, who is accusing the federal government of targeting its health centers from providing reproductive health services.

A provision of the just-signed into law “One Big Beautiful Bill” prevents certain “prohibited entities” from receiving Medicaid reimbursements.

In its complaint filed in a Massachusetts federal court, Planned Parenthood argues that the provision is aimed at groups “primarily engaged in family planning services, reproductive health, and related medical care” who received more than $800K in Medicaid funds in the 2023 fiscal year.

“The Defund Provision is a naked attempt to leverage the government’s control over funds to punish Planned Parenthood,” the complaint reads. “It does so not only because of Planned Parenthood Members’ long history of providing legal abortions to patients across the country, but also because of Planned Parenthood’s unique role in advocating for policies to protect and expand access to sexual and reproductive health care, including abortion.

If the provision stands, Planned Parenthood said the funding provision could lead to around 200 of its health centers in 24 states to shutter.

“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,” Planned Parenthood Federation of America CEO Alexis McGill Johnson said in a statement.

Dear Readers: We recognize that politics often intersect with the financial news of the day, so we invite you to click here to join the separate political discussion.