On Monday, a federal judge ruled that Planned Parenthood clinics nationwide must continue to be reimbursed for Medicaid funding. The judge stated, “that her decision would block the federal government from excluding groups like Planned Parenthood from Medicaid reimbursements when they have demonstrated a substantial likelihood of success in their legal challenge,”  Kimberlee Kruesi reported for The Associated Press.

“In its lawsuit, Planned Parenthood had argued that they would be at risk of closing nearly 200 clinics in 24 states if they are cut off from Medicaid funds. They estimated this would result in more than 1 million patients losing care,” Kruesi wrote.

“The order, issued by Judge Indira Talwani in Federal District Court in Massachusetts, extended a temporary block she had placed on the government earlier this month,” Zach Montague reported for The New York Times. This comes after the House of Representatives passed its tax and immigration bill on July 3, which included big cuts to Medicaid services. “The bill imposed a one-year ban on state Medicaid payments to any healthcare nonprofit that offers abortions and received more than $800,000 in Medicaid funding in 2023,” Montague explained.

At the same time, “California and a coalition of other liberal-led states sued the Trump administration Tuesday over a provision in the ‘Big Beautiful Bill’ that bars Planned Parenthood and other large nonprofit abortion providers from receiving Medicaid funding for a host of unrelated healthcare services,” Kevin Rector reported for the Los Angeles Times on July 29. “In announcing the states’ lawsuit Monday, Bonta’s office echoed Planned Parenthood officials in asserting that the provision specifically and illegally targets Planned Parenthood and its affiliate clinics — calling it ‘a direct attack on the healthcare access of millions of low-income Americans, disproportionally affecting women, LGBTQ+ individuals, and communities of color.’”

Previously, Healthcare Innovation noted that on June 26, the U.S. Supreme Court allowed South Carolina to block Planned Parenthood's access to federal Medicaid funding for non-abortion services. This ruling would allow states to ban Planned Parenthood from receiving Medicaid reimbursements for care not related to abortion, including cancer screenings.