Federal Judge Halts Medicaid Funding Ban on Planned Parenthood

A federal judge has temporarily halted a section of President Donald Trump’s “One Big Beautiful Bill” that would have cut off Medicaid reimbursements to Planned Parenthood and similar providers offering abortion services.

The ruling came Monday, July 7th, after U.S. District Judge Indira Talwani issued a 14-day restraining order blocking the Department of Health and Human Services (HHS) from enforcing the provision. The court ordered continued Medicaid payments to Planned Parenthood Federation of America and its affiliates in Massachusetts and Utah.

Planned Parenthood filed suit shortly after the law was enacted, arguing the measure unlawfully targeted the organization by attempting to strip Medicaid funds from providers that offer abortions, even though federal law, via the Hyde Amendment, already bars public money from directly funding abortion procedures except in rare cases.

The blocked provision would have gone further, barring Medicaid reimbursements for unrelated health services such as STI testing, cancer screenings, and contraceptive care. Though the legislation did not name Planned Parenthood explicitly, the organization argued it was the clear target.

In its legal filing, Planned Parenthood warned that the funding cut would force staffing reductions and service closures, disproportionately affecting patients in underserved areas. In a public statement, the group described the law as unconstitutional and welcomed the court’s decision.

The lawsuit names HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz as defendants. Neither agency has responded publicly to the ruling.

A follow-up hearing is scheduled for July 21st, when the court will decide whether the restraining order will remain in place or be lifted.